GOP Spending Bill Limits Child Tax Credit Eligibility, Impacts Over 2 Million Children Nationwide

The child tax credit, a key component of President Donald Trump's domestic policy and tax plan, is set for changes under a new GOP tax and spending bill recently passed by the Senate. The bill raises the maximum child tax credit from the current $2,000 to $2,200 and permanently enshrines it into the tax code with annual inflation adjustments, while the House version proposes an even higher increase to $2,500 temporarily. However, the bill also raises the income threshold required to receive the full credit, which would result in fewer children qualifying, especially in high-poverty areas like Kentucky where more than one-third of children would lose eligibility. Additionally, the bill introduces a new requirement that both the child and parents have valid Social Security numbers, effectively excluding many children in mixed immigration status families from receiving the credit, impacting states with large immigrant populations such as Texas, California, Florida, and New York. Studies have shown the expanded child tax credit during the pandemic significantly reduced child poverty and improved health and housing stability, but the new bill's provisions could reverse some of these gains. Critics argue that the bill does not adequately support the families most in need and that the child tax credit, while presented as a tax benefit, often functions as a direct payment to low-income families who do not owe taxes.