Equalizing the Child Tax Credit for Babies: How the 2023 American Family Act Treats Infants
In this policy memo, published by the Scholars Strategy Network, CPSP researchers identify how inadvertent inequities in payment timing for newborns arose in current law and in some prior versions of proposals for permanent expansion. It explains how the 2023 American Family Act—a proposal relevant to the forthcoming 2025 federal tax debate—would deliver monthly Child Tax Credit benefits to all eligible newborns moving forward.
Key Points
Evidence shows families face an increased poverty risk around the time of birth, but that cash delivered around birth and in children’s early years can produce lasting positive effects.
The Child Tax Credit, both under current law and under prior proposals for expansion, creates inadvertent and sizable variation in the payments received by infants around the time of birth and within their first year of life based on children’s month of birth.
To rectify any inequity, the 2023 American Family Act provides the same benefit to children, no matter when in the year they are born: offering a lump-sum payment of $2,000 (the size of the current benefit) at birth followed by monthly installments of $300 thereafter.
This policy memo is issued by the Scholars Strategy Network. The Scholars Strategy Network (SSN) is a national membership organization made up of college- and university-based researchers interested in improving policy and strengthening democracy.
Suggested Citation:
Curran, Megan A., David Harris, and Christopher Wimer. 2024. Equalizing the Child Tax Credit for babies: How the 2023 American Family Act treats infants. Boston, MA: The Scholars Strategy Network.
