Starting July 15, roughly 39 million households — covering 88 percent of children in the United States —will begin receiving monthly payments as part of an expanded child tax-credit program projected to lift more than 5 million children out of poverty this year, cutting child poverty by more than half, said the Treasury Department on Monday.

The payments, called Child Tax Credit (CTC), are part of the American Rescue Plan Act (ARPA) of 2021, a $1.9 trillion coronavirus relief package that President Joe Biden signed in March to lessen the impact of COVID-19 and revive the economy.

For the first time, the payments, normally given annually as tax refunds, will be distributed monthly. Because the advance payments are beginning halfway through the year, families will get the second half as tax refunds.

For 2021 only, eligible families will get up to $3,600 for each child under 6, and up to $3,000 for each child between the ages of 6 and 17. Before the relief law, families could receive only $2,000 per qualified child under the 17.

That means that eligible families will receive a payment of up to $300 per month for each child under age 6 and up to $250 per month for each child age 6 and above.

Households covering more than 65 million children will receive the monthly CTC payments through direct deposit, paper check or debit cards. The Treasury and the IRS will try to maximize the use of direct deposit to ensure fast and secure delivery, said the announcement.

According to the IRS, the credits will phase out for individuals earning more than $75,000 per year, $150,000 for married couples filing a joint return and qualifying widows or widowers, and $112,500 for heads of household.

According to a study about children in poverty by the Center for American Progress, nearly 11 million American children are poor. That means that 1 out of 7 children are living in poverty, and they make up almost one-third of all people living in poverty in the US.

The center's study also found that the COVID-19 pandemic has exacerbated the poverty level in the US. Since April 2020, the share of children with at least one unemployed parent has consistently remained above reported rates during the peak of the recession of 2008.

More than 4 in 10 children live in a household struggling to meet basic expenses, and between 7 million and 11 million children live in households in which they are unable to eat enough, the study concluded.

The Biden administration wants to extend and expand the CTC including the monthly checks, through 2025. If enacted by Congress, the expansion would lift another 4.1 million children above the poverty line, cutting the remaining number of children in poverty by more than 40 percent, according to Center on Budget and Policy Priorities.

Jing Shiyan contributed to this story.