Child tax credit expansion not included in omnibus package

A child tax credit (CTC) expansion is not included in the $1.7 trillion omnibus funding bill that congressional lawmakers expect to pass this week, despite Democrats listing it as a top priority during negotiations with Republicans.

In exchange for a renewal of expanded child tax credits, Democrats had offered a deal to GOP lawmakers that would have awarded tax credits for big business.

Neither is included in the more than 4,000-page omnibus package to fund the government through September.

Sen. Michael Bennet (D-Colo.) on Tuesday said, “Republican leaders decided to send a lump of coal to America’s children this year.”

“Over the last few weeks, Republican leaders in Washington refused to even discuss a deal that would benefit America’s kids and businesses,” Bennet said in a statement. “They were absent from the negotiating table, and the coming year will be much harder for America’s families as a result.”

Congress passed an expanded CTC in 2021 to help alleviate costs for struggling families during the pandemic.

The expanded CTC for eligible recipients included $3,000 per child over the age of 6 and $3,600 per child under the age of 6.

But the beefed-up program expired in December of last year to the chagrin of Democrats, who have vowed to renew it.

During omnibus negotiations, Republicans offered $4 billion for the expanded CTC in exchange for a number of corporate tax breaks, according to The Washington Post.

But Democrats rejected the offer because it was only enough to fund an expanded CTC for six months.

Frank Clemente, the executive director of Americans for Tax Fairness, expressed regret the CTC expansion was not included but applauded the removal of tax credits for corporations.

“Republicans chose corporations over kids at Christmas,” Clemente said in a Tuesday statement. “But public demand for tax fairness has grown so strong that such bills can no longer fly through Congress without serious opposition or even inquiry.”

Experts told The Hill this month that if the U.S. enters a recession next year, as some fear, tax credit programs such as an expanded CTC could be back on the negotiating table to help families.