WASHINGTON – Responding to the political popularity and bipartisan support of the Child Tax Credit (CTC), Senator Hawley announced a proposal to increase the credit from $2,000 to $5,000 for some families. Hawley’s proposal would make families eligible for a partial credit starting with the first dollar earned, and it would increase the credit for some lower-income families by offsetting payroll tax liability, but it would still exclude millions of the lowest-income kids from the full credit. Importantly, it would allow families to receive the credit in regular installments. 

Details remain unclear on whether offsetting payroll taxes would translate into cuts to Social Security and Medicare funding and whether proposed credit eligibility for pregnant women or families with newborns would be a strategy to advance controversial Republican positions on fetal personhood.

“The Child Tax Credit is a proven policy for helping families, supported by millions of voters across the political spectrum, but it can’t become a bargaining tool that Republicans use to secure giant new tax giveaways for billionaires and wealthy corporations. Any CTC expansion introduced by Democrats or Republicans should include a full credit for the millions of low-income children and immigrant families currently left out and make sure it is monthly and predictable,” said Adam Ruben, Vice President of Campaigns and Political Strategy at Economic Security Project. “We can’t support a higher tax credit for some children at the expense of the lowest-income families that are struggling with an acute affordability crisis. What’s become clear is the expanded monthly Child Tax Credit and the bonus for new parents are very popular proposals. Indeed, they were championed by both parties during the presidential election. Groups like Economic Security Project, which have advocated for the expanded Child Tax Credit for years, will push to ensure it is an inclusive, robust tax credit available to all families and children.”

If you would like to speak with Adam Ruben or other leaders from Economic Security Project about the impacts of an expanded Child Tax Credit, please contact [email protected].