To amend the Internal Revenue Code of 1986 to establish a refundable childhood education tax credit with monthly advance payments.

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.
• 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.
• 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.

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