The Biden administration will begin making monthly child tax credit payments in July.

The Biden administration will begin paying hundreds of dollars per month to millions of American families in July as it rolls out the refundable child tax credit that was created as part of the economic relief legislation that Congress passed in March.

The provision in the stimulus bill was viewed by Democrats as central to their efforts to reduce poverty and income inequality in the United States. The program is expected to provide additional funds to 39 million households and the Biden administration projects that it will lift 5 million children out of poverty this year.

The Treasury Department said on Monday that the temporary payments of up to $300 per month will begin on July 15 to families that are eligible. Families with children under 6 years old can receive the $300 monthly payment, while those with children over 6 receive $250 per month.

The size of the payments are phased out based on income levels.

The money represents advance payments on expanded refunds taxpayers are eligible to receive through the American Rescue Plan that was passed in March. Families are getting half of the money as advanced monthly payments this year and will get the rest when they file their tax returns next year. The law boosted the maximum size of the tax credit to $3,600 this year.

President Biden wants to extend the benefit as part of his recently proposed American Families Plan.

“While the American Rescue Plan provides for this vital tax relief to hard working families for this year, Congress must pass the American Families Plan to ensure that working families will be able to count on this relief for years to come,” Mr. Biden said in a statement. “For working families with children, this tax cut sends a clear message: help is here.”

As with the economic stimulus payments, the child tax credit money will be distributed by the Internal Revenue Service through direct deposit, checks or debit cards.