Stronger Start for Working Families Act
Bipartisan Senate Bill Proposes Lowering Income Limit to Help More Families Claim Child Tax Credit
Legislative Progress
Key Points
- This bill, introduced by Senators Hassan and Young, aims to make it easier for low-income families to get money back from the Child Tax Credit. Currently, families must earn at least $3,000 in a year before they can start receiving the 'refundable' part of this credit.
- The proposal would lower that income requirement from $3,000 down to just $1. This means almost any working parent, even those with very low part-time earnings, could qualify for a portion of the credit to help pay for their children's needs.
- The 'refundable' part of the credit is important because it goes to families who do not owe much in federal income taxes. Instead of just reducing a tax bill, the government sends them the credit as a refund check to help with the costs of raising a child.
- If passed, these changes would start applying to the taxes people file for the year 2026. This would provide financial assistance to millions of the lowest-earning working families across the country.
- The goal of the policy is to reduce child poverty by ensuring that the families who need the most help are not left out of tax benefits simply because they do not earn enough money.
Impact Analysis
Personal Impact
How this policy affects specific groups of people
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 articles
Sens. Young, Hassan introduce bill that would reduce taxes for families with children
U.S. Sens. Todd Young (R-IN) and Maggie Hassan (D-NH) introduced the Stronger Start for Working Families Act, which would allow families to receive the full Child Tax Credit starting with the first dollar earned, removing the current $2,500 income threshold for the refundable portion.
What's New in Child Care Legislation and Policy?
The Stronger Start for Working Families Act (S. 3596) would remove the $2,500 minimum income threshold for the refundable portion of the Child Tax Credit. The Tax Policy Center estimates this change would provide a tax cut for nearly 3.5 million families in 2026.
Source Information
Document Type
Congressional Bill
Official Title
Stronger Start for Working Families Act
Data Sources
Sponsor
Cosponsors
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