What Congress’ New Child Tax Credit Deal Could Mean for You

In Tuesday, a bipartisan group of lawmakers announced a $78 billion deal that would expand corporate tax breaks and the child tax credit, which could put extra money in families’ pockets as soon as this year if passed.

The plan, known as the Tax Relief for American Families and Workers Act of 2024, is part of a months-long negotiating process between Republicans and Democrats. If passed, the deal would revive the child tax credit from the 2021 American Rescue Plan Act. After that child tax credit, which was distributed in monthly payments, ended at the end of 2021 the number of children in poverty increased by 5 million in the following year, according to left-leaning organization The Center on Budget and Policy Priorities.

“Fifteen million kids from low-income families will be better off as a result of this plan, and given today’s miserable political climate, it’s a big deal to have this opportunity to pass pro-family policy that helps so many kids get ahead,” said Senate Finance Committee Chairman Ron Wyden, a Democrat from Oregon.

The new proposed child tax credit would be more modest than the pandemic-era one passed in the American Rescue Plan, though The Center on Budget and Policy Priorities says that the expansion would particularly help black, Latino, and American Indian children.

More From TIME: