ST. PETERSBURG, Fla. - At the YMCA Preschool Academy in Lealman, news of the $300-per-child monthly payment comes as good news to many parents.
"I want to save," offered Carla Richardson, a parent of a 5-year-old, "because the whole pandemic caught me off guard."
Richardson’s is one of around 39 million households that will receive the payments through direct deposit, paper check or debit cards with no additional action required on their part.
"I go to work full time and school, so the extra money is going to be pretty helpful," agreed Jessyca Tussing, who teaches at the preschool while she and her husband raise two boys, age 5 and 12.
The family would like to buy a home. She hopes the extra money will help stabilize their finances and make that possible.
"You’re recovering from a pandemic, you try to get some savings and then three things happen in a week and you’re pulling from your savings," she continued.
The temporary government benefit will cover nearly 90 percent of the children in the U.S. with $300 for each child under 6 years old and $250 for kids ages 6 to 17.
The tax credit benefit gets smaller for individuals who earn more then $75,000 a year and for couples who earn more than $150,000 yearly.
The president announced the plan Monday. It’s part of the Democrats’ $1.9-trillion coronavirus rescue package.
Under the plan, families can receive a credit totaling $3,600 for each child under 6 and $3,000 for each one under age 18 for 2021.
"I feel like this extra money is going to help with groceries and I can put it toward her savings account so her future is brighter," said Richardson, talking about her young daughter. "And if this ever happens again when she gets older, she’s prepared."