DRT to Execute Program to Provide Monthly Support to Families
Hagåtña, Guam – The Leon Guerrero-Tenorio Administration announces that the Child Tax Credit Plan, prepared by the Department of Revenue and Taxation (DRT), which includes provisions for the implementation of the Advance Child Tax Credit (CTC) Program for Guam residents, was approved today by the Internal Revenue Service (IRS) and the U.S. Treasury. Payment of the Advance Child Tax Credit and the reimbursement to the government of Guam for the Child Tax Credit were authorized by the American Rescue Plan Act of 2021, which was signed into law by President Biden on March 11, 2021.
The IRS and U.S. Treasury approved a total of $93,537,000 in initial funding for the Advance CTC. In addition to this, DRT was approved to receive $300,000 to fund administrative expenses for the implementation of the Program.
Governor Lou Leon Guerrero stated, “The expanded Child Tax Credit under the American Rescue Plan will put more money into the hands of families than ever before. This program will not only lift up low-income families but will also provide needed relief to struggling middle-class families across the country. In addition to supporting their well-being and studies, the American Rescue Plan, through this program, helps us ensure that our children receive the financial support they need to address the economic impacts of the pandemic. In our implementation of this program, we continue to put families first to ensure a prosperous island, which has been a pillar of our Administration. Thus, we are instructing DRT to implement this program as soon as possible, which is timely as Pandemic Unemployment Assistance is set to expire next month. Again, this relief is not intended to replace income, but to provide support, especially as we work towards recovery.”
“This Child Tax Credit Program is the largest component in the American Rescue Plan to cut child poverty in half, especially for children under six years of age, and will result in automatic monthly payments for most families. Not only will this program help us provide for the needs of our children, but it will also provide a boost to our economy,” stated Lt. Governor Josh Tenorio. “Once Guam is in receipt of funds, we look forward to expedient execution of payments by DRT Director Dafne Mansapit-Shimizu and her team, who, throughout the pandemic, have implemented these much-needed lifelines to our residents.”
The rollout of the Advance Child Tax Credit for Guam requires the credit to be paid in equal monthly installments. DRT will be working to make the first installment of the Advance CTC as soon as possible.