Congressional negotiators are closing in on a deal to expand the federal child tax credit that, if it becomes law, would make the program more generous, primarily for low-income parents, as soon as this year.
No agreement has been formally announced by Senate Finance Committee Chairman Ron Wyden (D-Ore.) and House Ways and Means Committee Chairman Jason T. Smith (R-Mo.), who have been trying to strike a deal for months. Any bill’s path to passage remains uncertain, particularly because House Republicans may be reluctant to give President Biden even a partial victory on one of his top domestic economic policy priorities: bringing back something like the expanded child tax credit, which was a centerpiece of his 2021 American Rescue Plan.
The emerging deal would make the existing child tax credit more generous, a major Democratic priority. In exchange, it would also continue several business tax breaks favored by corporate America, a Republican priority.