U.S. Sens. Todd Young (R-IN) and Maggie Hassan (D-NH) are cosponsors of a bill that seeks to provide a tax cut to 3.5 million families with children.
The bill, the Stronger Start for Working Families Act, would allow families with children to begin receiving the full Child Tax Credit (CTC) starting with the first dollar they earn. It would provide a tax cut to nearly 3.5 million families with kids in 2026, according to the Tax Policy Center.
“The Child Tax Credit is one of our most effective tools for helping working families make ends meet and ensuring children have the stability they need to thrive. By starting refundability at the very first dollar earned, our bill will expand access to the Child Tax Credit for low-income parents while strengthening the incentive to enter or remain in the workforce,” Young said. “This is a practical, bipartisan step we can take to support families, reward work, and help more Americans climb the economic ladder.”
Under current law, millions of families do not receive the full value of the Child Tax Credit because their income isn’t high enough to maximize the refundable portion of the credit. This proposed bill would change that, allowing them to begin earning refundable CTC benefits beginning with the first dollar of income that they earn, rather than only for income over $2,500.
“Families across New Hampshire and the country are working hard to provide for their children, but too many are struggling with rising costs for essentials like groceries, child care, and utilities,” Hassan said. “The Child Tax Credit supports parents in raising the next generation, but right now, many hard-working families are not able to access the full tax cut because they don’t get paid enough at work. I urge my colleagues on both sides of the aisle to support this commonsense bill that will help working families make ends meet and build a stronger future for their kids.”
The bill is supported by America Forward, American Compass, BPC Action, Bread for the World, Local Initiatives Support Corporation, Niskanen Center, R Street Institute, RESULTS, Third Way, Indiana Community Action Poverty Institute, Prosperity Indiana, and United Way of Central Indiana.
“Middle class security is out of reach for far too many American families. Senators Hassan and Young understand that putting the American dream within reach will require both getting more support to working families, and making sure their work is rewarded. The pro-family, pro-work Stronger Start for Working Families Act advances both principles, by making sure the Child Tax Credit benefits families starting with the first dollar they earn,” Chris Griswold, policy director for American Compass, said.
Michele Stockwell, president of BPC Action, called the legislation a pragmatic, pro-family reform that will improve economic security for millions.