American Families Struggling Again After Just 2 Months Without Child Tax Credit Payments

The US families haven’t received Child Tax Credit for two months. The government ended the program after issuing the six installments in December last year. The low and middle-income families face financial struggle again as they wrestle with the high prices. The Child Tax Credit payments offered a financial cushion to the families and helped them out of poverty. Children are the worst victims because their education is beaten due to insufficient family budgets. CNBC reports that around 60% of the parents couldn’t fill their stomachs since the checks ceased. Nearly 22% of the parents are unable to meet the necessities of the family members.

Halt In Child Tax Credit Has Made Survival Difficult For The Families
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Families Cannot Afford Basic Expenses

The ongoing pandemic has deprived millions of jobs, businesses have vanished. The US economy faces its worst nightmare as the inflation records highest in the previous four decades. The continuous rise is the bane for struggling households. Economists predict worse circumstances for families with the current inflation rate. The monetary support from the government allowed the families to afford a decent living and children’s education. The government officials are in jeopardy, burning their brains to find a long-term solution.

Future Is Not Bright For Beneficiaries

In November, the Biden Administration introduced a Build Back Better program worth $1.9 trillion. The bill aimed to extend the public benefits to restore the country’s financial situation. However, the bill failed to gain full support in the Senate, putting the future at crossroads. The government needs to maintain the market supply chain to check inflation. Otherwise, the US would be staring at a financial recession. The IRS provided $250 to $300 per month to low-income families in the latter half of 2021. Although CNBC reports that the federal benefits reduced poverty significantly, the continuation of the Child Tax Credit would have resulted in better circumstances at present.

The report suggests that 74% of the CTC recipients utilized the amount to fulfill their daily needs. Further benefits would have allowed them in future planning and financial security. The future of the federal benefits looks blurred. The families will struggle until the prices retain normalcy. IRS has started issuing tax refunds, and this may heal the situation to some extent.