DC
District Of Columbia Council Bill B25-0232

District Of Columbia 2023-2024 Regular Session

District Of Columbia Council Bill B25-0232 Compare Versions

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77 March 21, 2023
88
99 Nyasha Smith, Secretary
1010 Council of the District of Columbia
1111 1350 Pennsylvania Avenue NW
1212 Washington, DC 20004
1313
1414 Dear Secretary Smith,
1515
1616 Today, I am introducing the Financial Support for Families with Children Amendment Act of
1717 2023. Please find enclosed a signed copy of the legislation, which is co-introduced by
1818 Councilmembers Janeese Lewis George, Charles Allen, Robert White, and Brooke Pinto.
1919
2020 This proposed legislation provides families living in deep poverty a refundable tax credit
2121 equivalent to $1,000 per child annually to support the development and well-being of District
2222 children. This bill is slated to go into effect during the 2024 calendar year and will provide
2323 families greater assistance to care for children.
2424
2525 The COVID-19 pandemic upended how we live and exacerbated racial and socioeconomic
2626 disparities. We know that the District’s poorest children lost more learning
2727 1
2828 , experienced more
2929 socio-emotional strain
3030 2
3131 , and faced even starker health disparities during the pandemic as
3232 compared to their peers
3333 3
3434 . While the District mounts a Come Back Plan, the effects of the
3535 pandemic are still being felt daily for vulnerable families and children – and financial support
3636 provided to these vulnerable families and children can ensure we assuage or even reverse the
3737 negative academic, socio-emotional, and health impacts of the pandemic.
3838
3939 1
4040 The World Bank, “Learning Losses from COVID-19 Could Cost this Generation of Students Close to $17 Trillion in Lifetime
4141 Earnings” 2021. https://www.worldbank.org/en/news/press-release/2021/12/06/learning-losses-from-covid-19-could-cost-
4242 this-generation-of-students-close-to-17-trillion-in-lifetime-earnings
4343 2
4444 Innovate Public Schools, COVID-19 has harmed students’ social-emotional wellbeing, making it even more difficult to learn”
4545 2021.“https://innovateschools.org/research-and-data/learning-loss/covid-19-has-harmed-students-social-emotional-wellbeing-
4646 making-it-even-more-difficult-to-learn/
4747 3
4848 Kaiser Family Foundation, “Headed Back to School: A Look at the Ongoing Effects of COVID-19 on Children’s Health and Well-
4949 Being” 2022. https://www.kff.org/coronavirus-covid-19/issue-brief/headed-back-to-school-a-look-at-the-ongoing-effects-of-
5050 covid-19-on-childrens-health-and-well-being/
5151 In 2021, the Biden administration expanded the federal Child Tax Credit, and poverty declined
5252 in DC for 25,000 children. Families with children received $3,000 to $3,6000 per child and these
5353 monthly payments cut the child poverty rate in DC in half during the temporary expansion.
5454 Research shows that families spent this money to pay bills and buy food and clothing for their
5555 households.
5656 4
5757
5858
5959 A majority of people living in poverty in the District are Black children. According to the DC
6060 Fiscal Policy Institute, “child poverty is higher in DC (22.8%) than nationally (17%), and more
6161 than one-third of Black children live in poverty.” Children living in poverty have lower health
6262 and educational outcomes. By addressing poverty, we will be able to address several other
6363 challenges District children face as well.
6464
6565 We stress through this bill that benefiting families shall not be penalized for receiving this
6666 supplemental payment. Through the Financial Support for Families with Children Amendment
6767 Act of 2023, the District can ensure our most vulnerable families and children are included in
6868 DC’s Come Back Plan.
6969
7070 Please contact my Legislative Director, Kendra Wiley at kwiley@dccouncil.gov if you have any
7171 questions.
7272
7373 Sincerely,
7474
7575
7676
7777
7878 Zachary Parker
7979 Ward 5 Councilmember
8080
8181
8282 4
8383 Global Economy and Development program at Brookings, “The impacts of the 2021 expanded child tax credit on
8484 family employment, nutrition, and financial well-being: Finding from the Social Policy Institute’s Child Tax Credit
8585 Panel (Wave 2)” 2022. https://www.brookings.edu/wp-content/uploads/2022/04/Child-Tax-Credit-Report-
8686 Final_Updated.pdf
8787
8888
8989 1
9090
9191 ______________________________ ________________________________ 1
9292 Councilmember Janeese Lewis George Councilmember Zachary Parker 2
9393 3
9494 4
9595 ______________________________ ________________________________ 5
9696 Councilmember Charles Allen Councilmember Brooke Pinto 6
9797 7
9898 8
9999 ______________________________ ______________________________ 9
100100 Councilmember Robert White Councilmember Vincent C. Gray 10
101101 11
102102 12
103103 13
104104 14
105105 A BILL 15
106106 _________________________ 16
107107 17
108108 IN THE COUNCIL OF THE DISTRICT OF COLUMBIA 18
109109 19
110110 _________________________ 20
111111 21
112112 22
113113 To amend Title 47 of the District of Columbia Official Code to establish a financial assistance 23
114114 program for low-and no-income earners with children. 24
115115 25
116116 BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this 26
117117 act may be cited as the “Financial Support for Families with Children Amendment Act of 2023”. 27
118118 Sec. 2. Chapter 18 of Title 47 of the District of Columbia Official Code is amended as 28
119119 follows: 29
120120 (a) The table of contents is amended by adding a new section designation to read as 30
121121 follows: 31
122122 “§ 47-1806.17 Financial Support for Families with Children.”. 32
123123 Sec. 3. Chapter (b) A new section 47-1806.18 is amended to read as follows: 33
124124 Ҥ 47-1806.18 Financial Support for Families with Children. 34
125125 “(a)(1) For taxable years beginning after December 31, 2023, there shall be allowed a 35
126126
127127
128128 2
129129
130130 credit of $1,000 per qualifying child per year to the head of the family that is the parent or 36
131131 caretaker of a qualifying child. 37
132132 “(2)(A) The amount of the credit allowable under this subsection shall be reduced 38
133133 by $100 per $1,000 (or fraction thereof) by which the individual’s income exceeds the threshold 39
134134 amount; except that the reductions cannot reduce the payment below zero. 40
135135 “(B) For purposes of this paragraph, the term “threshold amount” means: 41
136136 “(i) $20,000 in the case of a joint return; and 42
137137 “(ii) $10,000 in the case of all other returns. 43
138138 “(iii) If the recipient does not file a tax return, 100% of the federal 44
139139 poverty level as defined in § 4–681.01. Definitions. 45
140140 “(C)” For each year the credit per qualifying child set forth in paragraph 46
141141 (1) of this subsection shall be increased annually pursuant to the cost-of-living adjustment, 47
142142 except that if the adjustment does not result in a multiple of $5, the increase shall be rounded 48
143143 down to the next multiple of $5. 49
144144 “(3) The recipient of credit may choose to receive payments in one annual lump 50
145145 sum, or 12 equal monthly payments. 51
146146 “(b) A lump sum or periodic payment made pursuant to this section shall not be 52
147147 considered income for the purpose of determining eligibility or benefit amount for public 53
148148 assistance. 54
149149 “(c) The payments received shall not be included in determining eligibility for the 55
150150 supplemental nutrition assistance program or temporary assistance for needy families pursuant to 56
151151 Section 509 of Title V of the District of Columbia Public Assistance Act of 1982, effective April 57
152152 6, 1982 (D.C. Law 4-101, D.C. Official Code § 4-205.10). 58
153153
154154
155155 3
156156
157157 “(d) The Mayor shall choose State options and seek all necessary federal approvals or 59
158158 waivers to implement this section. 60
159159 “(e) A qualifying recipient who is a resident of the District but is not a citizen or resident 61
160160 alien of the United States, who would otherwise be allowed the credit under this section but for 62
161161 the fact that the individual is not a citizen or resident alien of the United States, shall be allowed 63
162162 a credit against the tax imposed by this chapter for the taxable year in the same amounts and to 64
163163 the same extent as provided in this subsection. 65
164164 “(f) Beginning on July 1, 2025 and each year thereafter, the Mayor shall annually report 66
165165 to the Council on the outcomes and effectiveness of this section that shall include the following: 67
166166 “(1) The number of persons receiving the basic income payments under this 68
167167 section; 69
168168 “(2) The amount of payments made in the aggregate; 70
169169 “(3) An analysis of the impact the payments are having on child poverty rates; 71
170170 “(4) If applicable, the number of new jobs obtained by recipients and other forms 72
171171 of economic output created as a result of the payments; and 73
172172 “(5) The impact relative to the District’s Upward Mobility Plan.” 74
173173 “(g) The Mayor shall provide outreach and education about the basic income payments 75
174174 allowed in this subsection. 76
175175 “(h) The Mayor, pursuant to Title I of the District of Columbia Administrative Procedure 77
176176 Act, approved October 21, 1968 (82 Stat 1204; D.C Official Code § 2-501 et. seq.), shall issue 78
177177 rules to implement the provisions of this act. 79
178178 “(i) For the purposes of this section, the term: 80
179179
180180
181181 4
182182
183183 “(1) “Qualifying child” shall have the same meaning as provided in 26 USC § 81
184184 24(c)(1). 82
185185 "(2) “Cost-of-living adjustment” shall have the same meaning as provided in D.C. 83
186186 Official Code § 47-3701(1)(A).”. 84
187187 Sec. 3. Title V of the District of Columbia Public Assistance Act of 1982, effective April 85
188188 6, 1982 (D.C. Law 4-101, D.C. Official Code § 4-205.01 et seq.), is amended as follows: 86
189189 “(a) Section 505(1) (D.C. Official Code § 4-205.05(1) is amended by striking the phrase 87
190190 “including a periodic payment made pursuant to D.C. Official Code § 47-1806.04(f)(3).” and 88
191191 inserting the phrase “including a periodic payment pursuant to D.C. Official Code § 47-89
192192 1806.04(f)(3) or payments made under D.C. Official Code § 47-1806.17.” in its place. 90
193193 Sec. 4. Fiscal impact statement. 91
194194 The Council adopts the fiscal impact statement in the committee report as the fiscal 92
195195 impact statement required by section 4a of the General Legislative Procedures Act of 1975, 93
196196 approved October 16, 2006 (120 Stat. 2038; D.C. Official Code § 1-301.47a). 94
197197 Sec. 5. Effective date. 95
198198 This act shall take effect after approval by the Mayor (or in the event of veto by the 96
199199 Mayor, action by the Council to override the veto), a 30-day period of congressional review as 97
200200 provided in section 602(c)(1) of the District of Columbia Home Rule Act, approved December 98
201201 24, 1973 (87 Stat. 813; D.C. Official Code § 1-206.02(c)(1)), and publication in the District of 99
202202 Columbia Register. 100
203203 In 2021, the Biden administration expanded the federal Child Tax Credit, and poverty declined
204204 in DC for 25,000 children. Families with children received $3,000 to $3,6000 per child and these
205205 monthly payments cut the child poverty rate in DC in half during the temporary expansion.
206206 Research shows that families spent this money to pay bills and buy food and clothing for their
207207 households.
208208 4
209209
210210
211211 A majority of people living in poverty in the District are Black children. According to the DC
212212 Fiscal Policy Institute, “child poverty is higher in DC (22.8%) than nationally (17%), and more
213213 than one-third of Black children live in poverty.” Children living in poverty have lower health
214214 and educational outcomes. By addressing poverty, we will be able to address several other
215215 challenges District children face as well.
216216
217217 We stress through this bill that benefiting families shall not be penalized for receiving this
218218 supplemental payment. Through the Financial Support for Families with Children Amendment
219219 Act of 2023, the District can ensure our most vulnerable families and children are included in
220220 DC’s Come Back Plan.
221221
222222 Please contact my Legislative Director, Kendra Wiley at kwiley@dccouncil.gov if you have any
223223 questions.
224224
225225 Sincerely,
226226
227227
228228
229229
230230 Zachary Parker
231231 Ward 5 Councilmember
232232
233233
234234 4
235235 Global Economy and Development program at Brookings, “The impacts of the 2021 expanded child tax credit on
236236 family employment, nutrition, and financial well-being: Finding from the Social Policy Institute’s Child Tax Credit
237237 Panel (Wave 2)” 2022. https://www.brookings.edu/wp-content/uploads/2022/04/Child-Tax-Credit-Report-
238238 Final_Updated.pdf
239239
240240
241241 1
242242
243243 ______________________________ ________________________________ 1
244244 Councilmember Janeese Lewis George Councilmember Zachary Parker 2
245245 3
246246 4
247247 ______________________________ ________________________________ 5
248248 Councilmember Charles Allen Councilmember Brooke Pinto 6
249249 7
250250 8
251251 ______________________________ ______________________________ 9
252252 Councilmember Robert White Councilmember Vincent C. Gray 10
253253 11
254254 12
255255 13
256256 14
257257 A BILL 15
258258 _________________________ 16
259259 17
260260 IN THE COUNCIL OF THE DISTRICT OF COLUMBIA 18
261261 19
262262 _________________________ 20
263263 21
264264 22
265265 To amend Title 47 of the District of Columbia Official Code to establish a financial assistance 23
266266 program for low-and no-income earners with children. 24
267267 25
268268 BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this 26
269269 act may be cited as the “Financial Support for Families with Children Amendment Act of 2023”. 27
270270 Sec. 2. Chapter 18 of Title 47 of the District of Columbia Official Code is amended as 28
271271 follows: 29
272272 (a) The table of contents is amended by adding a new section designation to read as 30
273273 follows: 31
274274 “§ 47-1806.17 Financial Support for Families with Children.”. 32
275275 Sec. 3. Chapter (b) A new section 47-1806.18 is amended to read as follows: 33
276276 Ҥ 47-1806.18 Financial Support for Families with Children. 34
277277 “(a)(1) For taxable years beginning after December 31, 2023, there shall be allowed a 35
278278
279279
280280 2
281281
282282 credit of $1,000 per qualifying child per year to the head of the family that is the parent or 36
283283 caretaker of a qualifying child. 37
284284 “(2)(A) The amount of the credit allowable under this subsection shall be reduced 38
285285 by $100 per $1,000 (or fraction thereof) by which the individual’s income exceeds the threshold 39
286286 amount; except that the reductions cannot reduce the payment below zero. 40
287287 “(B) For purposes of this paragraph, the term “threshold amount” means: 41
288288 “(i) $20,000 in the case of a joint return; and 42
289289 “(ii) $10,000 in the case of all other returns. 43
290290 “(iii) If the recipient does not file a tax return, 100% of the federal 44
291291 poverty level as defined in § 4–681.01. Definitions. 45
292292 “(C)” For each year the credit per qualifying child set forth in paragraph 46
293293 (1) of this subsection shall be increased annually pursuant to the cost-of-living adjustment, 47
294294 except that if the adjustment does not result in a multiple of $5, the increase shall be rounded 48
295295 down to the next multiple of $5. 49
296296 “(3) The recipient of credit may choose to receive payments in one annual lump 50
297297 sum, or 12 equal monthly payments. 51
298298 “(b) A lump sum or periodic payment made pursuant to this section shall not be 52
299299 considered income for the purpose of determining eligibility or benefit amount for public 53
300300 assistance. 54
301301 “(c) The payments received shall not be included in determining eligibility for the 55
302302 supplemental nutrition assistance program or temporary assistance for needy families pursuant to 56
303303 Section 509 of Title V of the District of Columbia Public Assistance Act of 1982, effective April 57
304304 6, 1982 (D.C. Law 4-101, D.C. Official Code § 4-205.10). 58
305305
306306
307307 3
308308
309309 “(d) The Mayor shall choose State options and seek all necessary federal approvals or 59
310310 waivers to implement this section. 60
311311 “(e) A qualifying recipient who is a resident of the District but is not a citizen or resident 61
312312 alien of the United States, who would otherwise be allowed the credit under this section but for 62
313313 the fact that the individual is not a citizen or resident alien of the United States, shall be allowed 63
314314 a credit against the tax imposed by this chapter for the taxable year in the same amounts and to 64
315315 the same extent as provided in this subsection. 65
316316 “(f) Beginning on July 1, 2025 and each year thereafter, the Mayor shall annually report 66
317317 to the Council on the outcomes and effectiveness of this section that shall include the following: 67
318318 “(1) The number of persons receiving the basic income payments under this 68
319319 section; 69
320320 “(2) The amount of payments made in the aggregate; 70
321321 “(3) An analysis of the impact the payments are having on child poverty rates; 71
322322 “(4) If applicable, the number of new jobs obtained by recipients and other forms 72
323323 of economic output created as a result of the payments; and 73
324324 “(5) The impact relative to the District’s Upward Mobility Plan.” 74
325325 “(g) The Mayor shall provide outreach and education about the basic income payments 75
326326 allowed in this subsection. 76
327327 “(h) The Mayor, pursuant to Title I of the District of Columbia Administrative Procedure 77
328328 Act, approved October 21, 1968 (82 Stat 1204; D.C Official Code § 2-501 et. seq.), shall issue 78
329329 rules to implement the provisions of this act. 79
330330 “(i) For the purposes of this section, the term: 80
331331
332332
333333 4
334334
335335 “(1) “Qualifying child” shall have the same meaning as provided in 26 USC § 81
336336 24(c)(1). 82
337337 "(2) “Cost-of-living adjustment” shall have the same meaning as provided in D.C. 83
338338 Official Code § 47-3701(1)(A).”. 84
339339 Sec. 3. Title V of the District of Columbia Public Assistance Act of 1982, effective April 85
340340 6, 1982 (D.C. Law 4-101, D.C. Official Code § 4-205.01 et seq.), is amended as follows: 86
341341 “(a) Section 505(1) (D.C. Official Code § 4-205.05(1) is amended by striking the phrase 87
342342 “including a periodic payment made pursuant to D.C. Official Code § 47-1806.04(f)(3).” and 88
343343 inserting the phrase “including a periodic payment pursuant to D.C. Official Code § 47-89
344344 1806.04(f)(3) or payments made under D.C. Official Code § 47-1806.17.” in its place. 90
345345 Sec. 4. Fiscal impact statement. 91
346346 The Council adopts the fiscal impact statement in the committee report as the fiscal 92
347347 impact statement required by section 4a of the General Legislative Procedures Act of 1975, 93
348348 approved October 16, 2006 (120 Stat. 2038; D.C. Official Code § 1-301.47a). 94
349349 Sec. 5. Effective date. 95
350350 This act shall take effect after approval by the Mayor (or in the event of veto by the 96
351351 Mayor, action by the Council to override the veto), a 30-day period of congressional review as 97
352352 provided in section 602(c)(1) of the District of Columbia Home Rule Act, approved December 98
353353 24, 1973 (87 Stat. 813; D.C. Official Code § 1-206.02(c)(1)), and publication in the District of 99
354354 Columbia Register. 100