Parent groups excited over expansion of Child Tax Credit in stimulus bill

PHOENIX - Millions of parents will soon get a monthly allowance if they have a child under the age of 18, as a result of the American Rescue Plan, which has been signed into law by President Joe Biden.

The stimulus bill not only means stimulus check payments, but also overhauls the child tax credit.

Under the Child Tax Credit, parents would benefit from $2,000 annually. Now, it is being raised up to $3,600 a year.

Parents and local organizations are very excited about this, saying this will help bring families struggling out of poverty.

"I think it is awesome. I am super excited about it," said single mother Michelle Mallette.

When Mallette heard about the measure, she was relieved.

"I know as a single parent I need it, and I have had no choice," said Mallette.

It has been tough for Mallette during the ongoing COVID-19 pandemic. For a time, she couldn’t work at her job, and the YMCA helped her with her daughter, as she was trying to make ends meet.

"I don't have a partner. It is just me and my daughter and The Y," said Mallette.

Under the new measure, Mallette would receive up to $3,600 a year. According to the Children’s Action Alliance, the expansion of the Child Tax Credit will lift 112,000 Arizona children above the poverty line.

At the United Way, they say these resources will make a huge difference for families during the ongoing pandemic.

"57% of kids, meaning their families were living at the poverty level, so this helps put resources into pockets of families so they can go back to work, their kids can go back to school and they can be stabilized," said Carla Vargas Jasa.

Mallette says she is thankful it gives her and her daughter a chance to get ahead.

"That way, we are not strapped for bills, and we can have a future going forward and do what needs to be done," said Mallette.

On top of the Child Tax Credit expansion, the relief package will provide $780 million to expand childcare assistance, and $2.6 billion to help Arizona public schools reopen safely.