Congress nears deal to partially restore Biden’s expanded child tax credit

Congressional lawmakers are closing in on a deal that would partially revive President Biden’s expanded tax credit for lower-income families in exchange for extending tax incentives favored by business interests, according to two people familiar with the matter.
 

The higher child tax credit for lower-income families took effect in 2021 but expired that same year amid GOP opposition. Since then, Democrats have sought to bring back the higher credit, which they say pulled millions of lower-income families out of poverty.

The emerging three-year, roughly $80 billion deal with Republicans would ensure that more of the poorest families — who are traditionally excluded from the credit because they don’t owe any income tax — would qualify for at least some federal assistance. It would allow the lowest-income families to claim the credit for each child, the people said, when the current credit only allows those at the lowest end of the income spectrum to receive payments for one child.