American Family Act
Rep. DeLauro Introduces Bill to Provide Monthly Child Tax Credit Payments of Up to $360
The American Family Act is currently in the early stages of the legislative process. It was recently sent to the House Committee on Ways and Means for review. There are no upcoming votes scheduled at this time.
Part of: story →Legislative Progress
While popular with many voters, similar permanent expansions have faced strong opposition in the past due to concerns about the total cost to the government.
Key Points
- The bill replaces the current annual child tax credit with monthly payments of $300 per child age 6 to 17 and $360 per child under 6 (120% of $300). These amounts are adjusted for inflation each year.
- Newborns get a boosted payment during their first month of life. The credit for a child under one month old jumps to 800% of the base $300 amount, which works out to $2,400 for the birth month to help cover early expenses.
From policy text
“In the case of any specified child of such taxpayer who will not (as of the close of such month) have attained the age of 1 month, subparagraph (B) shall be applied by substituting `800 percent' for `120 percent'.”
View in full text - The credit is fully refundable, meaning families receive it even if they owe no federal income taxes. This ensures the lowest-income families get the same support as higher earners, as long as they live in the U.S. or Puerto Rico.
From policy text
“If the taxpayer (in the case of a joint return, either spouse) has a principal place of abode (determined as provided in section 32) in the United States or Puerto Rico for more than one-half of any calendar month during the taxable year, so much of the credit otherwise allowed under subsection (a) as is attributable to monthly specified child allowances with respect to any such calendar month shall be allowed under subpart C”
View in full text - The full credit is available to married couples earning up to $150,000 and single filers earning up to $112,500. Benefits phase out gradually above those amounts, with a secondary income cap at $400,000 for joint filers.
- The IRS would build an online portal in multiple languages where parents can sign up, stop payments, and update their info. The system also auto-enrolls newborns and families already in certain government programs.
- Monthly payments are protected from garnishment, levy, and offset by federal debts. Financial institutions must follow special rules to shield these payments in bank accounts from creditors.
Impact Analysis
Personal Impact
Milestones
Referred to the House Committee on Ways and Means.
Introduced in House
The bill was officially filed and given a number. It now enters the legislative queue.
Votes
No votes have been recorded for this legislation yet.
News
No related news coverage found for this legislation yet.
Source Information
Document Type
Congressional Bill
Official Title
American Family Act
Data Sources
Sponsor
Cosponsors
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