Sponsors (11)
The bill shifts support from refundable tax credits to direct monthly child payments and refundable adult credits—providing regular cash to many families and adults while increasing federal outlays, raising administrative and privacy challenges, and removing existing EITC/CTC tax supports that many low-income households rely on.
Families with qualifying children (U.S. citizens, nationals, or qualified aliens under 19) will receive a regular monthly cash payment beginning Jan 1, 2026, increasing household cash flow for parents and children.
Low- and middle-income taxpayers (adults ages 19–64 and some adult dependents) gain a refundable tax credit of roughly $700 per adult ($1,400 for joint filers or $700 per qualifying adult dependent), directly reducing tax liability or increasing refunds and providing cash regardless of employment.
Child payments and credits are excluded from federal and state means-testing and from income tax, preserving recipients' eligibility for other programs and avoiding tax liability.
Low-income families with children will lose the existing refundable child and earned income tax credits (CTC/EITC), increasing net tax burdens and possibly raising poverty risk for many working and low-income households starting in 2026.
Expanding refundable credits/payments (child payments and adult refundable credits) increases federal outlays and could raise deficits or require future tax increases or spending offsets paid by taxpayers.
Requiring SSNs/TINs, expanding IRS–SSA data-sharing, and automatic enrollment via government data raises privacy and data-security risks and may exclude or deter immigrants and households without TINs from claiming benefits.
Based on analysis of 5 sections of legislative text.
Creates a universal monthly child payment from Jan 1, 2026, ends the child and earned income tax credits after 2025, and adds two new refundable adult/individual credits.
Introduced November 20, 2025 by Rashida Tlaib · Last progress November 20, 2025
Creates a permanent Office of Universal Child Assistance at the Social Security Administration to deliver a universal monthly child payment beginning January 1, 2026, for most children under 19 who reside in the U.S. It funds the child payment by ending the existing child tax credit and earned income tax credit after 2025, while adding two new refundable tax credits for adults and other eligible individuals and requiring new IRS reporting and indexing rules.