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Senators Hassan & Young Introduce Bipartisan Bill to Strengthen the Child Tax Credit and Provide a Tax Cut for 3.5 Million Working Families

WASHINGTON – U.S. Senators Maggie Hassan (D-NH) and Todd Young (R-IN) introduced the bipartisan Stronger Start for Working Families Act, which would provide a tax cut to 3.5 million working families with children by allowing them to begin receiving the Child Tax Credit (CTC) starting with the first dollar they earn.

“Families across New Hampshire and the country are working hard to provide for their children, but too many are struggling with rising costs for essentials like groceries, child care, and utilities,” said Senator Hassan. “The Child Tax Credit supports parents in raising the next generation, but right now, many hard-working families are not able to access the full tax cut because they don’t get paid enough at work. I urge my colleagues on both sides of the aisle to support this commonsense bill that will help working families make ends meet and build a stronger future for their kids.”

“The Child Tax Credit is one of our most effective tools for helping working families make ends meet and ensuring children have the stability they need to thrive. By starting refundability at the very first dollar earned, our bill will expand access to the Child Tax Credit for low-income parents while strengthening the incentive to enter or remain in the workforce,” said Senator Young. “This is a practical, bipartisan step we can take to support families, reward work, and help more Americans climb the economic ladder.”

Under current law, millions of working families do not receive the full value of the Child Tax Credit because their income isn’t high enough to maximize the refundable portion of the credit. The Stronger Start for Working Families Act would cut taxes for these families by allowing them to begin earning refundable CTC benefits beginning with the first dollar of income that they earn, rather than only for income over $2,500. According to the Tax Policy Center, this change would provide a tax cut to nearly 3.5 million families with kids in 2026.

The bill is supported by the following organizations: America Forward, American Compass, BPC Action, Bread for the World, Local Initiatives Support Corporation, Niskanen Center, R Street Institute, RESULTS, Third Way, Indiana Community Action Poverty Institute, Prosperity Indiana, and United Way of Central Indiana.

“We applaud Senators Hassan and Young for this important legislation that expands the accessibility of the Child Tax Credit. America Forward Coalition organizations implement innovative, evidence-based economic mobility strategies nationwide. While the Child Tax Credit is a powerful tool to support families' financial security and economic mobility, Coalition members know the CTC’s earned income threshold excludes many families who could benefit. This critical bill will make a meaningful difference in the lives of families across the country,” said Deborah Smolover, Executive Director, America Forward.

“Middle class security is out of reach for far too many American families. Senators Hassan and Young understand that putting the American dream within reach will require both getting more support to working families, and making sure their work is rewarded. The pro-family, pro-work Stronger Start for Working Families Act advances both principles, by making sure the Child Tax Credit benefits families starting with the first dollar they earn.” – Chris Griswold, Policy Director, American Compass

“BPC Action applauds Sens. Hassan and Young for leading the Stronger Start for Working Families Act, which allows families with the most need to access a larger Child Tax Credit sooner while maintaining a strong incentive for parents to work,” says Michele Stockwell, President of BPC Action. “This bill signals a pragmatic, pro-family reform that will improve economic security and well-being for millions.”

“Years of inflation have eroded the purchasing power of struggling working-class families. Senators Hassan and Young’s Stronger Start for Working Families Act would tap into the Child Tax Credit’s long history of bipartisan support to supplement working families’ earnings with a much-needed boost at tax time.” – Josh McCabe, Director of Social Policy, Niskanen Center

“The R Street Institute supports the Stronger Start for Working Families Act. This impactful legislation would modernize earned income thresholds and increase refundability under the Child Tax Credit—putting more money back in the pockets of working families. R Street’s Project for Women and Families has long prioritized policies that reduce child poverty, and this proposal would do just that. We applaud Senator Hassan (D-N.H.) and Senator Young (R-Ind.) for their bipartisan leadership and encourage more Senators to join them in this important effort. Ensuring that children in this country do not grow up in poverty is not a partisan issue; it is simply the right thing to do,” said Anthony Lamorena, Senior Federal Affairs Manager at the R Street Institute.

“Sen. Hassan (D-NH) and Sen. Young (R-IN) should be applauded for their bipartisan leadership in introducing the Stronger Start for Working Families Act. This legislation will give millions of families working in low to moderate wage jobs a much needed $375 increase to their Child Tax Credit (CTC),” said RESULTS Executive Director Joanne Carter. “It is an important reminder that Congress can work together across party lines to promote the financial well-being of families.”

“The Stronger Start for Working Families Act will meaningfully expand the reach of the Child Tax Credit at a time when families are struggling to afford necessities like child care and groceries. We applaud Senators Hassan and Young for their bipartisan leadership on a working families tax cut that is effective, simple, and fiscally responsible.” – Zach Moller, Director of the Economic Program, Third Way

“The Child Tax Credit is the primary way our tax code supports parents in their hard work of raising the next generation, but too many working families are unable to fully benefit from it. This bill is a smart, targeted way of ensuring that hard work pays, and that parents have a little more support in covering the expenses of everyday life.” – Patrick T. Brown, Ethics and Public Policy Center

“Across the country, working families are feeling financial strain as costs continue to rise. We hear stories from families, and the organizations that serve them, about choosing between groceries and a filled prescription, keeping their houses cold in the winter to keep skyrocketing energy bills down, choosing overtime when they want to go back to school, and sometimes making these tough calls and still not having enough to pay their bills. We support the Stronger Start for Working Families Act as it responds to the needs of Hoosier families who want to give their children what they need to grow up healthy, focus on their education, and prepare for their futures.” – Aspen Clemons, Executive Director of Prosperity Indiana

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