House Republicans Approve Expanded Child Tax Credit in Budget Bill

House Republicans passed a new spending package on Thursday that includes an expansion of the child tax credit, raising the maximum benefit to $2,500 per child between 2025 and 2028.

The legislation, part of President Donald Trump’s broader tax and spending proposal, would permanently maintain the $2,000 maximum credit established by the 2017 Tax Cuts and Jobs Act and temporarily increase it to $2,500 for four years beginning in 2025. After 2028, the credit would revert to $2,000 and be indexed for inflation.

A family of four walking down the street | Source: Pexels

Policy analysts warn, however, that the proposed changes fail to assist the nation’s lowest-income families. “This bill is taking the child tax credit away from 4.5 million children who are U.S. citizens or lawfully present,” said Kris Cox of the Center on Budget and Policy Priorities. Cox noted that many low-income families do not earn enough to claim the full credit.

Under the House plan, both parents must have a Social Security number to qualify if filing jointly, and the credit begins to phase out at $400,000 in adjusted gross income for married couples or $200,000 for other filers. The refundable portion of the credit remains capped at $1,700.

Happy family sitting on the couch watching TV | Source: Pexels

Elaine Maag, senior fellow at the Urban-Brookings Tax Policy Center, noted, “Almost everyone gets it,” but emphasized that the expansion largely favors middle- and upper-income families.

The Senate must still approve the measure, and revisions are expected. “Senate Republicans have concerns,” said Senate Finance Committee Chair Mike Crapo, R-Idaho, but added that the party is open to negotiating a broader child tax credit solution.