The massive budget plan implementing President Trump’s priorities, which he affectionately dubbed the “One Big Beautiful Bill,” passed the House by a single vote and now faces an uncertain fate in the Senate. In its current form, the bill would deliver an average tax cut of almost $80,000 next year to those in the top one percent. That’s 40 times the tax relief going to middle-income families who struggle with the costs of housing, food, and raising children. This windfall for the wealthy would be paid for through cuts to health insurance, Pell grants, and food aid for millions of American families.
But the bill is far from finalized. The Senate still has time to deliver on the pro-family promises made by many Republican leaders, by amending the budget bill to provide balanced economic relief for all families. Key senators already have put forward plans that would do so.
Senator Hawley (R-MO) has a proposal to double the child credit to $5,000 per child – offsetting payroll taxes, the largest source of taxation for many families – and to deliver tax refunds quarterly. This would allow parents to get their refunds sooner, which can be crucial for parents of very young children who incur large expenses with a newborn.
Hawley is not alone in his goals. On the campaign trail, Vice President Vance advocated for a similar $5,000 tax credit for families to offset the costs of raising children. In addition, Senator Britt (R-AL) has a bipartisan proposal that would cover $8,000 in child care or pre-K expenses for families with two or more children.
Our national surveys detail how tax refunds help parents cover rent or mortgage payments, reduce credit card debt, and even splurge on toys they could not otherwise afford. Plus, mounting evidence shows that increased benefits for children advance children’s health and early learning.
These proposals will face stiff pressure from Senate colleagues hoping to contain costs. But even a compromise, such as boosting the child tax credit by $500 and making it accessible to lower-income families, would have large benefits for just one-third the cost of a $5,000 credit like the one Hawley is proposing.
If Senators are looking for ways to make child-rearing more affordable for middle- and low-income families, they could work together to::
Design a sufficient and fair child credit, then let parents decide how to invest in their children. The current bill would provide no benefit to the 17 million children raised in middle and low-income households who already live in families not receiving the full child credit. Focusing the credit on phasing in more quickly with every dollar earned could deliver benefits to many more families with children.
Simplify access to economic supports. Right now, the tax credits for low-income families are so complicated that families either need to pay for accountants and return preparation services or forgo them entirely. The Senate, instead, could consolidate existing tax credits, creating a single definition of “child” in the tax system to ease access and buoy a wider array of families.
Be careful with budget cuts that would increase the cost of raising children. Modest tax refunds would not offset the loss of health care and nutrition assistance. Tax relief for the middle class must be considered in the context of the entire plan – it would be counterproductive to pay for cuts by slashing programs that help families support themselves.
These reforms are possible. And they’re what Americans – particularly those trying to get by in uncertain economic times – deserve.
This piece was co-authored with Bruce Fuller, professor emeritus, education and public policy, at the University of California, Berkeley.
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