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Temporarily raises top individual income tax rates and reduces certain standard deduction amounts for taxable years starting after Dec 31, 2025 and before Jan 1, 2036, while permanently expanding the Earned Income Tax Credit (EITC) for workers without qualifying children and other eligible groups. It also creates a new refundable monthly Child Tax Credit with advance monthly payments, an added $500 credit for certain other dependents, and new rules for administering monthly advance payments and anti-fraud measures. The bill affects low- and moderate-income workers by making EITC larger and more widely available (including to certain young adults and U.S. possessions), requires the IRS to deliver monthly child payments with online enrollment and protections for recipients, and increases tax rates on high earners during the specified temporary window. Many changes take effect for tax years beginning after Dec 31, 2025; monthly advance payment mechanics start for calendar months after enactment with some transitional rules applying to months after Dec 31, 2025.
The bill provides substantial, regular cash support to families and boosts credits for low-income workers—improving short-term household finances—while offsetting this with higher taxes for many, greater federal spending, and notable administrative, fraud, and compliance risks.
Parents and families receive a refundable monthly Child Tax Credit (up to $300/month per child age 6+, $360 for under 6) paid in advance, providing steady cash flow for child-rearing expenses.
Low-income workers without qualifying children get an expanded, permanent Earned Income Tax Credit (higher rates and phaseouts), increasing take-home pay for many workers.
Monthly child payments are better protected and easier to access: payments are shielded from most offsets, garnishment, and bankruptcy, and automatic enrollment triggers (births, program data) plus a new multilingual online portal make enrollment and management simpler.
Many taxpayers—particularly middle-income households who claim the standard deduction—will see higher effective tax liabilities because the standard deduction is substantially reduced while top marginal rates rise (top rates to 41% and 43%).
Expanding refundable credits and monthly payments will materially raise federal outlays, increasing deficits or requiring offsets elsewhere in the budget.
Families receiving monthly advance payments may face unexpected tax liabilities or withholding increases if they received 'excess advances' or if eligibility/estimates change, imposing financial strain on low-income households.
Introduced March 10, 2026 by Cory Anthony Booker · Last progress March 10, 2026