Senate GOP Plans Expanded Paid Family Leave Credit, Softened College Endowment Taxes

Senate Republicans are advancing the One Big Beautiful Bill, a sweeping tax package featuring several family-related provisions. They aim to make the Section 45S paid family leave tax credit permanent, expand it to part-time workers, and lower eligibility requirements, though usage of the credit remains low. The Senate also proposes a smaller but permanent increase to the child tax credit, raising it to $2,200 per child compared to the House's $2,500 boost that expires after 2028. Additionally, the Senate plans to soften the proposed tax hike on large private college endowments, capping the excise tax at 8%, much lower than the 21% rate in the House bill. The bill includes provisions to expand tax-free withdrawals from 529 college savings accounts, though these could be modified by the Senate. These efforts collectively reflect Senate Republicans’ more moderate approach to family and education-related tax policies compared to the House version.