Another big change is that Democrats want the new child tax credit to be distributed over the course of a year in monthly payments.
If the COVID-19 relief package passes as is, then families would begin to see those monthly checks as early as July.
Right now, the child tax credit is $2,000 per child and is factored into parents' yearly tax returns.
"The pandemic is driving families deeper and deeper into poverty, and it's devastating," said Rep. Richard Neal in a statement. "We are making the Child Tax Credit more generous, more accessible, and by paying it out monthly, this money is going to be the difference in a roof over someone's head or food on their table," he continued.
This proposal applies to single parents earning up to $75,000 and to couples earning up to $150,000 combined. Also, it's only intended for the next year, in an effort to help lift families out of poverty caused by the pandemic.
White House Press Secretary Jenn Psaki says that President Biden supports the legislation.
"The president talked about this a bit on the campaign trail and the importance of child tax credits to help working families ensure they can make ends meet," she said.
The legislation is in line with President Biden's American Rescue Plan, $1.9 trillion emergency relief proposal.
The package is divided into three major areas: aid for families, provisions to fight the coronavirus, and relief for businesses and state, local, and tribal governments.
"Unity is not some pie-in-the-sky dream. It's a practical step to get any of the things we have to get done as a country, get done together," Biden said while unveiling the plan.
"I'm convinced we are ready to get this done," he said. "The very health of our nation is at stake."
You can find more on what's included in the American Rescue Plan here.