The Senate approved the bill on July 1 after a marathon vote-a-rama.
The Senate has passed its version of the One Big Beautiful Bill Act – with an expanded Child Tax Credit (CTC) for American families making it into the bill.
The Senate approved the bill on July 1 after a marathon vote-a-rama. The bill passed by a narrow 51-50 margin, with Vice President JD Vance casting the tie-breaking vote.Why It Matters
The CTC is a federal tax benefit aimed at helping families offset the cost of raising children. As of 2024, the credit provides up to $2,000 per qualifying child under the age of 17, with up to $1,600 of that amount refundable. This means eligible families can receive a portion of the credit as a refund even if they owe no federal income tax.What To Know
The bill boosts the CTC from a currently credit of $2,000 up to $2,200, and would rise every year linked to inflation. However, it does not change the refundable portion of the credit, which is set at $1,600.How The Boosted CTC Will Impact American Families
Under the current rules, low-income families often don’t receive the full credit because the Child Tax Credit is only partially refundable. That means families must earn a minimum amount (currently $2,500 for 2024 taxes) and receive the refundable portion based on how much they earn.
