Congressman Panetta Co-Introduces Bipartisan Legislation to Help New Parents Receive CARES Act Stimulus Checks This Year
WASHINGTON DC – Today, Congressman Jimmy Panetta (D-CA-20), Congressman Bill Pascrell, Jr. (D-NJ-09), Congresswoman Jackie Walorski (R-IN-02), and Congressman David Schweikert (R-AZ-06) introduced bipartisan legislation to ensure new parents quickly receive the additional $500 per child payment provided by the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
Currently, parents of children born on or after January 1, 2020, must wait until they file taxes in calendar year 2021 to receive those payments due to eligibility for the additional $500 per child being based on existing Child Tax Credit (CTC) rules. The Newborn CARES Act will waive the existing CTC rules and require the Internal Revenue Service to develop a system to provide payments to families with newborns once a Social Security Number is assigned to the child. Companion legislation, S. 3679, was introduced by U.S. Senators Tammy Duckworth (D-IL) and Tim Scott (R-SC).
“New parents face unique challenges, in addition to the huge financial strain this pandemic is having on all families across our country. Unfortunately, new parents are not able to get relief funding for their newborns through the CARES Act since it uses information from 2019 tax returns that doesn’t include children born in 2020,” said Congressman Panetta. “Our bipartisan legislation will ensure that the parents of newborns are able to receive this benefit now. The birth of a child should be a time of joy for families. Our government can help those families by ensuring they get the necessary help to get through this pandemic.”
“Amid a growing pandemic and with the regular stresses of parenthood, new parents have enough to worry about. They should not have to wait for money they are due from our CARES Act. The legislation I am introducing today will ensure that they can collect every cent they are owed without having to wait until next year,” said Congressman Pascrell. “I want to thank our Senate partners Tammy Duckworth and Tim Scott for their leadership on this important issue. Now more than ever Congress must support families with newborn babies, especially those experiencing economic hardship due to COVID-19. As we are fighting for another round of support for Americans, I know families cannot wait until next year to receive what they are rightfully due. That’s why I’m introducing this bipartisan legislation today. We must get these payments into the hands of families who need them most.”
“Direct payments under the CARES Act have provided critical lifelines to Americans during this unprecedented crisis, but new parents shouldn’t have to wait until next year to receive the full benefit,” Congresswoman Walorski said. “Ensuring parents of newborns receive their full payment as soon as possible is a commonsense way to help these young families thrive.”
“It is crucial that we in Congress work together to provide the support families need during these unprecedented times. New parents have already been faced with the challenge of welcoming home a child in the midst of a pandemic. By ensuring the $500 economic impact payments for children from the CARES Act are distributed earlier than next year’s tax filing season, we can help provide timely resources to the parents who need them the most. I am pleased to work with my colleagues on both sides of the aisle to provide these resources to parents as soon as possible” said Congressman Schweikert.
In April, Congressman Panetta led 27 bipartisan lawmakers in sending a letter to U.S. Department of Treasury Secretary Steven Mnuchin and Internal Revenue Service (IRS) Commissioner Charles P. Rettig urging the agencies to ensure parents with children born in 2020 are able to access advance direct payments for these children as part of the coronavirus emergency response aid.
As a member of the tax-writing Ways and Means Committee, Congressman Panetta is a strong advocate for increased support for middle- and working-class families. He is an original cosponsor of H.R. 1185, the FAMILY Act, which would provide workers with comprehensive paid family and medical leave.