Rep. Fields Introduces Bill to Give Parents $667 Monthly Payments for Pre-K Education
To amend the Internal Revenue Code of 1986 to establish a refundable childhood education tax credit with monthly advance payments.
This bill is currently in the early stages of the legislative process after being sent to the House Committee on Ways and Means for review. It is considered active, but no further hearings or votes have been scheduled at this time. There is no companion bill currently linked to this proposal.
Legislative Progress
Major new spending programs face significant hurdles in a divided Congress. This bill currently lacks broad bipartisan support and has not moved past the initial committee stage.
Key Points
- The bill creates a new refundable tax credit of $667 per month for each child aged 2 through 4 who is enrolled in an early childhood education program. The child must live with the taxpayer and receive uncompensated care from them.
From policy text
“the term `monthly childhood education allowance' means, with respect to any taxpayer for any calendar month, an amount equal to $667 for each specified child of such taxpayer.”
View in full text - Families would get the money through monthly advance payments from the IRS rather than waiting to file taxes once a year. The IRS must set up an online portal in multiple languages where parents can sign up, update information, or stop payments.
- The full credit goes to families earning up to 300% of the federal poverty level. Above that threshold, the credit phases out over an income range equal to 100% of the poverty line, eventually reaching zero for higher earners.
- The monthly payments are protected from garnishment, levy, and debt collection. They cannot be reduced to pay off federal debts, and financial institutions must follow special rules to shield the funds in recipients' bank accounts.
From policy text
“The right of any person to any applicable payment shall not be transferable or assignable, at law or in equity, and no applicable payment shall be subject to, execution, levy, attachment, garnishment, or other legal process, or the operation of any bankruptcy or insolvency law.”
View in full text - The $667 monthly amount is automatically adjusted for inflation each year based on the Consumer Price Index. The program applies to tax years beginning after December 31, 2025, with no built-in expiration date.
- The bill includes fraud prevention measures with steep penalties. Taxpayers found to have committed fraud face a 10-year ban from receiving the credit, while those who recklessly disregard rules are banned for 2 years.
From policy text
“the period of 120 calendar months after the most recent calendar month for which there was a final determination that the taxpayer's claim of credit under this section (or payment received under section 7527B) was due to fraud”
View in full text
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
To amend the Internal Revenue Code of 1986 to establish a refundable childhood education tax credit with monthly advance payments.
Data Sources
Sponsor
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