Congress·In Committee·S. 3596

Bipartisan Senate Bill Proposes Lowering Income Limit to Help More Families Claim Child Tax Credit

Stronger Start for Working Families Act

2 months ago·View on Congress.gov

Legislative Progress

Senate

House

President

Law

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.

TaxesEconomy

Impact Analysis

Personal Impact

How this policy affects specific groups of people

Positive Impacts(5)

Child Tax Credit

Helps

Lowers the earned income threshold from $3,000 to $1, letting the lowest-earning families qualify for refundable credit payments.

Earned Income Credit

Helps

Families earning very little would now qualify for refundable child tax credits, complementing other low-income tax benefits.

Small Business Owner

Helps

Self-employed parents with very low or inconsistent earnings would more easily qualify for the refundable child tax credit.

Immigrant

Helps

Low-income immigrant families who work but earn under $3,000 could now access refundable child tax credit payments.

Pregnant

Helps

New parents who only worked part of the year and earned very little could now qualify for the refundable credit for their child.

Milestones

2 milestones2 actions

Jan 8, 2026Senate

Read twice and referred to the Committee on Finance.

Jan 8, 2026

Introduced in Senate

What Happens Next

Projected impacts based on AI analysis

Early 2027

New lower income threshold takes effect for 2026 tax year

Working families earning as little as $1 could start qualifying for refundable child tax credit payments when they file 2026 taxes.

Related News

2 articles

Financial Regulation News·2 months ago

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.

BridgeCare·2 months ago

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.