Sponsors (11)
The bill redirects and consolidates tax benefits into predictable monthly child payments and refundable adult credits—providing steady cash to many households—while eliminating existing refundable credits (EITC/child credit) and adding substantial cost, administrative complexity, and privacy and eligibility risks that may worsen outcomes for some low‑income and immigrant families.
Families with qualifying children will receive a predictable monthly cash payment equal to the gap between two‑person and single HHS poverty guidelines, giving parents steadier household income for child-related needs.
Adults (both non‑dependent working‑age adults and eligible adult dependents) will get refundable credits (roughly $700 per adult; $1,400 for joint filers), increasing after‑tax income and supporting caregivers and working‑age individuals without dependents.
Child payments are excluded from federal income and resource tests, protecting recipients from losing means-tested benefits or facing higher federal tax liability as a result of receiving the cash.
Low‑income workers and families will lose the refundable EITC and the existing child tax credit, directly reducing after‑tax income for many households and increasing the risk of child poverty.
Creating monthly child payments and multiple refundable adult credits will substantially increase federal outlays, which could raise deficits or force future tax increases or spending cuts to offset the cost.
Required IRS‑to‑SSA data sharing and SSA handling of sensitive records raises privacy and data‑security risks for families and children if information is mishandled or improperly accessed.
Based on analysis of 5 sections of legislative text.
Creates monthly child assistance payments via SSA starting Jan 1, 2026; repeals the Child Tax Credit and EITC after 2025 and establishes two new refundable adult credits.
Official title: To establish a universal child assistance program, and for other purposes.
Introduced November 20, 2025 by Rashida Tlaib · Last progress November 20, 2025
Creates a new federal monthly Universal Child Assistance payment administered by the Social Security Administration beginning January 1, 2026, and ends the current Child Tax Credit and Earned Income Tax Credit for tax years after 2025. It also adds three new refundable tax credits: a $700 per qualifying adult dependent credit, and a means-tested refundable credit of $700 ($1,400 for joint filers) for non-dependent adults age 19–64, both indexed for inflation and effective for tax years beginning after December 31, 2025. The bill sets up an Office of Universal Child Assistance in SSA to run the program and requires annual reporting to Congress.