American Family Act
Sen. Bennet and 44 Democrats Reintroduce American Family Act to Provide Monthly Child Tax Credit Payments
The American Family Act is currently in the early stages of the legislative process. It was recently introduced in the Senate and sent to the Committee on Finance for review. There are no upcoming votes scheduled at this time.
Part of: story →Legislative Progress
While this is a top priority for Democrats, it currently lacks the Republican support needed to pass the Senate or a Republican-led House.
Key Points
- The bill replaces the current annual child tax credit with a monthly payment of $300 per child aged 6 to 17 and $360 per child under 6 (120% of $300). For a newborn's first month, the payment jumps to $2,400 (800% of $300).
- The credit is fully refundable, meaning families receive the full payment even if they owe no federal income tax. This is designed to reach the lowest-income families who currently miss out on part or all of the existing credit.
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 - Payments phase out for higher earners. Joint filers start losing the enhanced amount above $150,000, with a second phaseout beginning at $400,000. Single filers see phaseouts at $112,500 and $300,000.
- The IRS must build an online portal in multiple languages so parents can sign up, report changes like a new baby or address change, and start or stop receiving monthly payments.
- Monthly payments are protected from garnishment, offset, levy, and seizure in bankruptcy, ensuring families actually receive the money. Financial institutions must follow specific rules to shield these deposits.
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 bill terminates the existing annual child tax credit under Section 24 for tax years after 2024, replacing it entirely with this new monthly system. Dollar amounts adjust automatically for inflation each year.
From policy text
“This section shall not apply to (and no payment shall be made under subsection (k) with respect to) any taxable year beginning after December 31, 2024.”
View in full text
Impact Analysis
Personal Impact
Milestones
Read twice and referred to the Committee on Finance.
Sent to a congressional committee for expert review. The committee decides whether this bill moves forward.
Introduced in Senate
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.
Related News
2 articlesBennet introduces bill in his nearly decade-long push to expand child tax credit
Senator Michael Bennet reintroduced the American Family Act, which would permanently expand the Child Tax Credit to $6,360 for newborns, $4,320 for children under 6, and $3,600 for older children. The bill includes monthly delivery and full refundability for low-income families.
Bipartisan tax deal could expand child tax credit and extend business tax breaks
While discussing a new bipartisan tax framework, Senator Michael Bennet expressed disappointment that the deal did not go as far as his American Family Act. He argued that a return to the full, monthly, and refundable credit is necessary to significantly impact child poverty.
Source Information
Document Type
Congressional Bill
Official Title
American Family Act
Data Sources
Sponsor
Cosponsors
(44)Analysis generated by AI. Always verify with official sources.