Senate Eyes Changes to Child Tax Credit in Debate over Trump’s Tax and Spending Bill

As the Senate prepares to debate President Donald Trump’s sweeping multi-trillion-dollar tax and spending proposal, possible changes to the child tax credit are emerging as a key point of discussion.

The House-approved version of the bill would make the current maximum $2,000 child tax credit permanent and temporarily increase the top benefit to $2,500. However, policy experts suggest additional modifications may be on the table.

A child sitting and playing with coins taken out of a jar | Source: Pexels

“There’s some recognition here that they need do a little more,” said Howard Gleckman, senior fellow at the Urban-Brookings Tax Policy Center.

The child tax credit debate comes amid concerns over the nation’s declining fertility rate. Some lawmakers, including members of the Trump administration, believe expanded financial incentives could encourage higher birth rates.

While Democrats have historically supported credit expansion, recent Republican proposals signal growing bipartisan interest. Vice President JD Vance proposed a $5,000 credit during his campaign, stating on CBS’ Face the Nation, “I’d love to see a child tax credit that’s $5,000 per child.” Senator Josh Hawley (R-Mo.) echoed that call in January, proposing a $5,000 credit with advance payments and applicability to payroll taxes.

A family at the kitchen table reviewing an infographic presented by a woman | Source: Pexels

Refundability remains a central issue. Refundable credits allow low-income families with little or no tax liability to benefit. A bipartisan expansion passed the House in January 2024 but failed in the Senate. The latest House bill does not expand refundability, which could exclude about 17 million children from low-income families, according to Margot Crandall-Hollick of the Urban-Brookings Tax Policy Center.

Debate in the Senate could lead to significant revisions as lawmakers weigh how best to structure support for American families.