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Creates a new federal monthly child assistance payment administered by the Social Security Administration for U.S. resident children under age 19 beginning after Dec 31, 2025, funds it by eliminating the Child Tax Credit and Earned Income Tax Credit after 2025, and adds three new refundable tax credits for adults and adult dependents for tax years after 2025. The SSA must run an Office of Universal Child Assistance, determine eligibility from applications and IRS-provided data, make payments equal to a formula based on HHS poverty guidelines, exclude those payments from taxable income and means-tested benefit calculations, and reconcile payments if poverty guidelines change. The law also creates a $700-per-dependent “adult dependent” credit and a $700-per-adult (or $1,400 joint) refundable credit for adults and families with modest AGI phaseouts and basic reporting/TIN requirements.
The bill replaces existing refundable child and earned‑income tax credits with new monthly child payments and refundable adult credits that boost cash support for many low‑ and middle‑income people while reducing some targeted credits, increasing federal costs, and creating privacy, administrative, and eligibility trade‑offs.
Families with children under 19 receive a monthly cash payment equal to the difference between the 2-person and 1-person HHS poverty guidelines (excluded from federal taxable income and from means-tests), with SSA outreach and reconciliation for midyear increases to help ensure enrollment and retroactive adjustments.
Low- and middle-income adults (including joint filers) gain a refundable credit of up to $700 per adult ($1,400 joint) indexed for inflation and payable as cash, increasing after 2025 with COLA and ensuring people with little or no earnings receive benefits.
Taxpayers without children (and some low-income taxpayers) may face simpler tax filing and the government may reduce certain refundable outlays by eliminating refundable portions of existing credits, potentially lowering IRS complexity and federal spending.
Low-income workers and families with children would lose the Earned Income Tax Credit and the Child Tax Credit (including refundable portions), reducing after‑tax income and raising poverty and financial instability risks for many households with children.
The new refundable credits and monthly child payments increase federal outlays and could raise the budget deficit or require tax increases or spending offsets elsewhere.
Requirements for TIN/SSN use, IRS-to-SSA data sharing, and treating SSN applications as opt-out raise privacy concerns and risk excluding or deterring eligible people (including immigrants and people lacking documentation) from claiming benefits.
Introduced November 20, 2025 by Rashida Tlaib · Last progress November 20, 2025