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Child Tax Credit Would Expand to All Working Families Under New Bill

Child Tax Credit Would Expand to All Working Families Under New Bill

Summary

A new bill called the Stronger Start for Working Families Act has been introduced in the U.S. Congress. It aims to let low-income families earn the refundable part of the Child Tax Credit starting with their first dollar of work, instead of needing $2,500 in earnings first.

Key Facts

  • The bill lowers the earned income threshold for the refundable Child Tax Credit from $2,500 to $1.
  • The refundable part can be up to $1,700 per child in 2026.
  • Currently, families must earn $2,500 before receiving any refundable Child Tax Credit.
  • About 19 million children get less than the full credit or none because their families earn too little.
  • The bill is backed by both Republican and Democratic lawmakers.
  • Groups like Save The Children and the Bipartisan Policy Center support the bill.
  • Lowering the threshold means parents start to get tax benefits immediately when they begin working.
  • High childcare costs put financial pressure on families, making tax credits important for support.
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