By David Lawder

WASHINGTON, (Reuters) – The U.S. Treasury Department announced Wednesday that it had distributed $16 billion more in Child Tax Credit expanded payments to children in need. This was in the last month of a COVID-19 pilot programme. It expires as President Joe Biden’s climate and social spending bill languishes at Congress.

Columbia University research shows that the monthly payments lifted 3.6 million children from poverty by October.

If Congress does not approve a proposal to extend the “Build back Better” legislation, December’s payment of $300 for children under 6 years old and $250 for those aged 6-17 will be their last monthly payment.

Next year’s tax credit will return to the previous form. This includes a lump amount that Americans must file to claim and a decrease of $2,000 annually for each child to as low as $3,600. Americans without a tax return could forfeit the entire benefit, as the Tax Policy Center has estimated that it covers more than 40%.

The total monthly disbursements have reached $93 billion since July. In August, average Child Tax Credit payments were highest https://graphics.reuters.com/USA-BIDEN/zgvombbaxvd in states that supported former president Donald Trump in the 2020 election.

Janet Yellen, U.S. Treasury Secretary, stated in a statement that tax relief has made a difference for the lives of tens and millions of children all over America.

A person who was familiar with the negotiations revealed that Biden’s domestic investment bill of $1.75 trillion had been stalled by Democrats in Congress. However, Joe Manchin, a moderate Democratic senator, objected to the extension of the Child Tax Credit.