American Family Act

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.
• 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.
• 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.