Congress is working on changes to the Child Tax Credit. At first glance, it sounds like good news: the credit might increase from $2,000 to $2,500 per child. But if you’re like many working moms juggling part-time jobs while trying to afford rent, groceries, and diapers, that extra money may never reach you.
The Credit Doesn’t Help Families Who Need It Most
Right now, if your annual income is below $2,500, you don’t qualify for the Child Tax Credit at all. Once you do pass that threshold, the credit doesn’t come in all at once. For every $100 you earn over $2,500, you receive just $15 in credit—until you hit the cap.
According to Brookings, this means:
- A mom working 20 hours a week at minimum wage all year would get about $375 per child.
- Meanwhile, families earning $400,000 would receive the full $2,000—or $2,500 under this new plan.
So the people who don’t need help are getting the most, and the ones who do are left behind. And the new proposal doesn’t fix that. It raises the maximum credit but keeps the same rules for how it’s phased in. That means low income families are still stuck in the same struggle.
Even worse, there’s a new restriction in the bill that could exclude about 4.5 million children from the credit altogether. If even one parent on your tax return doesn’t have a Social Security number, your child may not qualify—no matter their citizenship status.
What Congress Could Do Instead
There are better ways to structure the Child Tax Credit—ones that would actually lift children out of poverty without spending more money. Experts suggest:
- Starting the credit from the first dollar of earnings, so part-time and low-wage workers aren’t left out.
- Phasing it in per child, not per household, to better support larger families.
- Offering the full credit to families with newborns, regardless of income, to support healthy early development.
All of these improvements combined would cost less than a quarter of what the new bill is expected to spend.
You can find more ways to save money and get free stuff in our family resource guide.
What You Can Do
Think this needs to change? Here’s how to speak up:
- Go to Congress.gov.
- Click “Members” at the top.
- Enter your ZIP code to find your lawmakers.
- Call, email, or write to tell them how this bill would impact your family.
Your voice matters—and it could make all the difference.
Relief Recap
The Child Tax Credit could be a powerful tool to reduce child poverty—but only if it’s designed to include the families who need it most. Right now, the system gives the biggest benefits to the wealthiest households, while millions of struggling families are left out. Smarter, simpler fixes are possible. Congress just needs to choose them.