Senate Republicans’ spending bill boosts child tax credit. Who stands to benefit
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Senate Republicans passed a bigger child tax credit as part of Trump's spending package. If enacted, here is who stands to benefit.
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July 1, 2025
06:35 PM
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Under current law, the maximum child tax credit is $2,000, which will revert to $1,000 after 2025 without changes from Congress
The Senate's spending bill would permanently raise the top credit to $2,200 starting in 2025
By contrast, the House-apved bill would increase the highest child tax credit to $2,500 from 2025 through 2028
Halfpoint Images | Moment | Getty ImagesSenate Republicans on Tuesday passed President Donald Trump's spending package, which includes a bigger child tax credit — but some families won't see a benefit, policy experts say
Under current law, the maximum child tax credit is $2,000, which will revert to $1,000 after 2025 without changes from Congress
Wider income eligibility limits will also sunset without an extension
If enacted, the Senate bill would permanently raise the top credit to $2,200 starting in 2025
The vision would also index this figure for inflation after 2025
By contrast, the House-apved One Big Beautiful Bill Act would increase the highest child tax credit to $2,500 from 2025 through 2028
After that, the credit's max value would fall to $2,000 and be indexed for inflation
More from Personal Finance:What the Senate Republican tax and spending bill means for your moneyStudent loan borrowers face 'default cliff' as late payments climbHow the GOP budget bill targets immigrant financesWith differences between the Senate and House visions, it's un how the measure could change
The House still must apve the Senate's legislation before it arrives at Trump's desk for his signature
How to calculate the child tax creditFor 2025, the child tax credit is worth up to $2,000 per qualifying child under age 17 with a valid Social Security number
After the first $2,500 of earnings, the child tax credit value is 15% of adjusted gross income, or AGI, until the tax break reaches that peak of $2,000 per child
The tax break starts to phase out once AGI exceeds $400,000 for married couples filing together or $200,000 for all other taxpayers
However, "if you have very low income, you can't access the full $2,000 credit," Elaine Maag, senior fellow in the Urban-Brookings Tax Policy Center, previously told CNBC
The reason: The child tax credit is only partially "refundable," which vides a benefit after your balance reaches $0
This feature helps the lowest earners who typically don't owe taxes
The refundable portion, known as the additional child tax credit, is worth up to $1,700 for 2025
Who benefits from the child tax credit boostIf the Senate bill is enacted, the bigger child tax credit would primarily go to middle- and upper-income families, according to Kris Cox, director of federal tax policy with the Center on Budget and Policy Priorities' federal fiscal policy division
Currently, 17 million children do not receive the full $2,000 credit because their families don't earn enough and owe enough taxes, the organization finds. "Both bills leave behind children in families with lower incomes," Cox told CNBC
Both bills leave behind children in families with lower incomes
Kris CoxDirector of federal tax policy with the Center on Budget and Policy Priorities' federal fiscal policy divisionIn 2024, the House passed a bipartisan bill to address this issue by boosting the refundable portion of the credit, but the legislation later failed in the Senate
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Some re suggests financial incentives, a bigger child tax credit, could boost U
But other experts say it won't resolve the issue long term
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