U.S. Senators Young & Hassan introduce legislation to boost Child Tax Credit for working families

U.S. Senators Todd Young (R-Ind.) and Maggie Hassan (D-N.H.) introduced the 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 full Child Tax Credit (CTC) starting with the first dollar they earn.

“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.”

“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.”

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: Prosperity Indiana, 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, and United Way of Central Indiana.

“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,” said Aspen Clemons, Executive Director of Prosperity Indiana.

“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,” said Chris Griswold, Policy Director for 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,” said Michele Stockwell, President of BPC Action. “This bill signals a pragmatic, pro-family reform that will improve economic security and well-being for millions.”

Full text of the legislation can be found here. Full stakeholder quotes can be found here.