In August 2021, the second round of monthly payments from the newly expanded Child Tax Credit (CTC) hit families’ bank accounts. The American Rescue Plan (ARP) dramatically increased the value of the CTC, from $2,000 per child to up to $3,600 per child under six and $3,000 per child six and older. The ARP also expanded the CTC so that it is now fully refundable, and previously ineligible low-income families will receive the full credit. Half of the expanded CTC will be distributed via monthly payments, helping families meet their financial needs in real time.
The second round of monthly payments distributed over $15 billion to families across the United States, averaging $428 per qualifying family and reaching almost 61 million children. The number of children in families receiving the CTC grew by 1.6 million from July to August. The local economic impact of the monthly expanded CTC is likely to total nearly $19.3 billion each month.