Sponsors
The bill boosts monthly, refundable child tax credits and expands EITC access to provide steadier support to families and vulnerable young adults, while increasing federal spending and adding verification, privacy, and tax-rate changes that could produce repayment risks, administrative burdens, and distributional and fiscal trade-offs.
Parents and families with children receive a refundable monthly child tax credit (advance payments of $300/$360 per child) that provides steady, predictable cash flow each month.
Low-income adults — including adults without qualifying children and qualified former foster and homeless youth — gain expanded Earned Income Tax Credit access and earlier eligibility, increasing refunds and work incentives.
Residents of U.S. possessions (e.g., Puerto Rico, American Samoa, mirror-code possessions) continue to be eligible for the EITC beyond 2025, preserving tax relief for territory residents.
Households and taxpayers at large could face higher federal deficits or the need for offsets because refundable credits and monthly advance child payments substantially increase federal outlays.
Families receiving advance monthly child payments risk overpayments or misestimates (based on a reference month/year) that can lead to later reconciliations, tax liabilities, or clawbacks, creating financial instability.
New verification, tightened ID/TIN rules, long disallowance periods for fraud, and narrow anti‑fraud/termination rules could delay claims, abruptly stop benefits, or permanently bar some families from receiving aid after enforcement actions.
Based on analysis of 8 sections of legislative text.
Temporarily raises standard deductions and top tax rates (2026–2035), expands/makes permanent childless-worker EITC, and creates monthly advance child-tax-credit payments.
Raises standard deduction amounts temporarily, increases the top individual income-tax rates for high earners for taxable years beginning after Dec 31, 2025 and before Jan 1, 2036, expands and makes permanent several changes to the earned income tax credit (EITC) for people without qualifying children, and requires the IRS to make monthly advance child-tax-credit payments to taxpayers who meet rules for "presumptive eligibility." The bill also updates EITC inflation-indexing rules and extends certain EITC treatment to U.S. possessions beyond 2025.
Introduced March 10, 2026 by Cory Anthony Booker · Last progress March 10, 2026