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 a refundable child tax credit that was created as part of the economic relief legislation Congress passed in March.

Democrats view the tax credit 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 five million children out of poverty this year.

Speaking at the White House on Monday, President Biden hailed the payments as a tax cut that would help the middle class.

“This tax cut sends a clear and powerful message to American families with children: Help is on the way,” Mr. Biden said.

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

The size of the payments will be reduced based on income levels.

The money is an advance on expanded refunds that taxpayers are eligible to receive under the American Rescue Plan. Families are getting half of the money as monthly payments this year and will get the rest when they file their tax returns next year. The law increased the maximum size of the tax credit to $3,600 this year.

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

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.

“We are getting you a tax cut this year, now, when you need it,” Mr. Biden said.