As Republicans gear up to introduce a tax package next year, a growing number of prominent GOP lawmakers are expressing support for expanding the child tax credit. This shift comes as a response to the concerns of working families, with some calling for the credit to increase significantly. Vice President-elect J.D. Vance, for example, is backing the idea of raising the child tax credit to $5,000 per child, a dramatic increase from the current $2,000.
This week, Republican Senator Josh Hawley of Missouri voiced similar support for such an expansion, publicly stating his plan to follow Vance’s lead in pushing for the $5,000-per-child credit. In a social-media post, Hawley explained that the policy would serve the same purpose as President Trump’s successful campaign strategy: catering to working people with children. “President Trump won with the support of working people with kids. Next year’s tax bill should provide them a big tax cut,” he said, noting that the president-elect’s support base largely consisted of middle- and lower-income voters.
But will a bigger child tax credit actually become a reality?
Lorena Roque, an expert with the Center for Law and Social Policy (CLASP), believes it’s entirely possible. Roque, who works with the left-leaning advocacy group, points out that Senator Hawley has “positioned himself as a leader in the Senate,” which could give the proposal significant momentum. She gives the expansion a 50/50 chance of passing but suggests that the credit might increase by a smaller amount, like $3,000 per child. Roque also supports some elements of Hawley’s proposal, especially the idea of delivering the credit through regular payments, rather than lump sums during tax season, which could provide families with more consistent financial support throughout the year.
“If they go to $3,000, that would still be great,” Roque told MarketWatch. The potential change could benefit millions of working families who struggle to balance rising living costs with raising children. It’s a step that many advocates see as necessary to address income inequality and provide more financial relief where it’s needed most. However, Roque also voiced concerns about the plan’s work requirements, which could complicate the implementation for some families.
On the other side of the debate, conservative voices have raised significant concerns about the proposal. Robert Rector, a senior research fellow at the Heritage Foundation, expressed deep skepticism about expanding the child tax credit in its current form. “I’m not particularly interested in the prospect of making a much larger welfare payment system — which is what this would be,” Rector said. He argues that such a move would fail to address the underlying issues within the government’s welfare programs, particularly what he calls the “marriage penalty.” This penalty occurs when a household’s benefits are reduced as their income increases, often due to marriage.
Rector believes that any discussion of increasing the child tax credit should include addressing the marriage penalty, which he argues penalizes families when both partners are working. He explained that when a single mother earning $20,000 a year marries a man with the same income, the couple could lose as much as $10,000 in benefits. This issue, Rector contends, is a major problem with the current welfare system and needs to be fixed before expanding the child tax credit.
While the debate continues, there’s no denying that the child tax credit has become a key issue in the national conversation on taxes and family support. The credit has been a fixture of U.S. tax policy for decades, first created in 1997 with a modest benefit of $500 per child. Over the years, it has been gradually expanded, with Republicans increasing it to $2,000 per child in their 2017 tax overhaul. However, the credit reverted to this $2,000 level after 2021 when the American Rescue Plan temporarily boosted it to as much as $3,600 per child. This expansion, along with monthly payments, was part of the COVID-19 relief efforts, but it was not extended beyond the 2021 tax year. As things stand, the child tax credit is set to drop back to $1,000 after 2025 unless Congress acts on the issue.
Many supporters of the child tax credit argue that increasing it would have far-reaching benefits for families, especially those with lower and middle incomes. According to a study from the Center on Budget and Policy Priorities, raising the child tax credit could significantly reduce child poverty. It could also provide families with more financial flexibility, helping them to cover essential costs like food, housing, and healthcare.
In fact, the expansion of the credit has gained traction among lawmakers who see it as a powerful tool for strengthening the financial stability of American families. By directly providing support to families with children, the credit could reduce the financial strain on households struggling with rising expenses.
For many Republicans, however, the issue isn’t just about expanding the credit. It’s about ensuring that the tax code is designed to encourage work and promote marriage stability. As the debate over how best to address the child tax credit continues, lawmakers will likely need to strike a balance between helping working families and addressing concerns about the long-term effects of expanded welfare programs.
Senator Hawley’s proposal to increase the credit to $5,000 per child is one of the more ambitious plans to date, and while it may face challenges in Congress, it signals a shift toward policies aimed at reducing poverty and supporting working parents. Whether it’s the $5,000 figure or a smaller increase, like $3,000, many agree that any expansion of the child tax credit would provide much-needed relief for families who are struggling to make ends meet.
In the coming months, as Republicans prepare their tax package for next year, it’s clear that the child tax credit will remain a central issue in the debate over taxes and family support. For now, the future of this proposal remains uncertain, but one thing is for sure: it’s a topic that will continue to spark conversation and shape policy in the years to come.
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