From next month, around 36 million American families are due to begin receiving payments totalling up to $1800 through to December this year.

Lawmakers have temporarily expanded the Child Tax Credit (CTC) available to families with children in 2021.

Known as the enhanced Child Tax Credit, it was signed into law by President Joe Biden as part of the American Rescue plan.

The efforts will increase the previous $2,000 annual tax credit to $3,600 per child, with half being paid in cash instalments and the rest claimed on 2021 tax returns.

Families will get monthly payments of up to $300 for each child 6 years old and under and up to $250 for each child 6 to 18 years old.

These funds can help parents afford necessities like diapers, school supplies, and food. But this increase in the CTC payments has only been approved for 2021.

The Biden administration has also proposed to extend this new cash-back system for five years if successful.

An estimated 90 percent of children in the United States will automatically get the CTC. Even if a parent is making little to no income, they can still be eligible for the new CTC.

Meanwhile, Vice President Kamala Harris says residents need to “spread the word”