The recent Republican tax bill poses a significant risk of cutting off millions of families from key tax credits designed to alleviate financial stress, despite a growing emphasis on a policy meant to encourage conservatives to have more children.
One clause within the substantial bill aims to increase the child tax credit. However, it’s estimated that about 17 million children might miss out on receiving the full benefits due to their parents not meeting the qualifications. Additionally, this new provision would require parents or guardians of U.S. citizen children to possess a Social Security number to claim the credit. This means that if both parents are married and file jointly, they both need to have Social Security numbers as well.
This stipulation would essentially exclude undocumented immigrants and other non-eligible immigrants from claiming credits for U.S. citizen or legal resident children. Currently, families with children holding Social Security numbers can qualify for credits, irrespective of the parents’ status.
Chief of Staff Thomas Bursold informed congress members that this new requirement could result in around 2 million children with Social Security numbers losing their credits. Some analyses suggest that the number could be as high as 4.5 million.
During a hearing of the House Methods and Means Committee, California Democrat Linda Sanchez accused Republicans of attempting to “penalize these children despite their American citizenship.”
The ongoing discussions about child tax credits intertwine with right-wing views that advocate for increased births, emphasizing that having children should yield greater benefits. In recent weeks, some Republicans have suggested ideas like a $5,000 “baby bonus” for families, even awarding medals to mothers who have numerous children. There’s a sense that they might be trying to encourage more parents to leave their jobs and stay home, which could disproportionally impact women, as they often bear the brunt of childcare.
However, many of these proposals are quite costly and seem contrary to Republican promises to significantly reduce federal spending.
“They’re eager to promote childbearing,” one woman noted regarding the Republican plans, “but I doubt their true intent is to assist those families in raising them.”
The tax bill, dubbed “One Big, Beautiful Bill,” reflects the priorities of many Republican leaders. On the campaign trail, Donald Trump vowed to eliminate certain tax tips—for instance, an exemption for tips that would only apply to common jobs. The bill hints at providing numerous new tax credits for businesses while raising taxes on university contributions, a frequent target of the Trump administration.
Some changes, including the rise in child tax credits, are temporary and set to expire in 2029 when Trump is expected to take office. At that point, the credit would revert back to $2,000.
When the Democrat-led Congress approved the 2021 American Rescue Plan, they raised the child tax credit to $3,600 for kids under six and $3,000 for those under 18, ensuring that even those who don’t pay taxes could receive the full amount.
Yet, those provisions are short-lived. Families can now access a child tax credit of up to $2,000 for each child under 17, but it’s anticipated to drop to just $1,000 next year.
Moreover, the credits no longer expand in favor of the neediest individuals, instead functioning on a sort of sliding scale. Family units with incomes under $2,500 aren’t eligible, yet those earning above this threshold get more credits as their income increases. However, families with a joint income exceeding $400,000 are excluded from receiving the credit altogether. Republican plans for child tax credits are likely to maintain this system.
“Under this bill, families earning $400,000 a year will still get $2,500 per child,” said Washington Democrat Suzan Delvene during a recent hearing. “Yet, a struggling family or one with both parents working full-time at minimum wage is left out.”
