Sen. Mitt Romney (R-UT) unveiled a proposal Thursday to provide a monthly cash benefit to families with children.
The proposal comes as many Democrats have also expressed interest in giving families with children monetary benefits every month.
“This proposal offers a path toward greater security for America’s families by consolidating the many complicated programs to create a monthly cash benefit for them, without adding to the deficit,” Romney said in a news release.
Under Romney’s proposal, the current child tax credit would be replaced with $350 per month payments for children ages five and under and $250 per month for children between the ages of six and 17.
Families would receive a maximum monthly payment of $1,250.
To be eligible for the program, a child must have a Social Security number, or parents can apply to start receiving the benefit four months before a child’s due date.
The payment amounts are gradually eliminated for single tax filers making more than $200,000 or joint filers making more than $400,000 in a given year.
The Social Security Administration would be responsible for doling out the payments.
Romney said he would offset the cost of his proposal by getting rid of some federal programs, including the child and dependent care tax credit, head of household filing status, and temporary assistance for needy families.
The junior senator from Utah also proposed reducing the cost of the earned income tax credit and repealing the local and state income tax deduction.
The Niskanen Center, a think-tank in favor of a child allowance, estimated Romney’s plan would cut U.S. child poverty by one-third.
Romney unveiled his proposal during a debate over another stimulus package aimed at coronavirus relief.
Although Democrats are unlikely to favor how Romney would finance his proposal, White House chief of staff Ron Klain tweeted that he was “looking forward” to seeing what is in the measure.
— Ronald Klain (@WHCOS) February 4, 2021
“Really looking forward to see what @SenatorRomney will propose here — an encouraging sign that bipartisan action to reduce child poverty IS possible,” Klain tweeted.