# 119-hr-2438: Foster Care Tax Credit Act

119-hr-2438, Foster Care Tax Credit Act, is a 119th Congress bill sponsored by Rep. Houchin, Erin [R-IN-9] (R-IN); status introduced; PRIA reads it as touching household money (as of 2026-09-21).

- Canonical: https://policyrisk.com/legislation/119-hr-2438
- As of: 2026-09-21
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Bill: 119-hr-2438
- Congress: 119
- Title: Foster Care Tax Credit Act
- Status: introduced
- Introduced: 2025-03-27
- Sponsor: Rep. Houchin, Erin [R-IN-9] (R-IN)
- Cosponsors: 4
- Policy area: Taxation
- Touches household money: yes
- Last recorded action: 2026-09-21

## Summary

**Would create a new $850 Foster Care Tax Credit to help foster parents and add reporting rules for placement agencies.** It would also phase out the credit as household income rises, using modified adjusted gross income rules.

## Cosponsors (4)

- Rep. Johnson, Julie [D-TX-32] (D-TX), 2025-03-27T00:00:00.000Z
- Rep. Bacon, Don [R-NE-2] (R-NE), 2025-11-19T00:00:00.000Z
- Rep. Pettersen, Brittany [D-CO-7] (D-CO), 2025-12-10T00:00:00.000Z
- Rep. Carson, André [D-IN-7] (D-IN), 2026-04-16T00:00:00.000Z

## Provisions PRIA read

- New $850 tax credit for foster parents: benefit, high. This bill would create a refundable $850 tax credit for foster parents. You would qualify if a foster child under 17, who is a U.S. citizen, national, or resident, lived with you for at least one calendar month in the year. More than 15 straight days in a month would count as the full month. You co…
- Agencies must report foster placements: benefit, low. Authorized agencies and courts would have to file placement reports with the IRS and send foster parents a statement each year. The statement would list the foster parents’ names, addresses, and tax IDs, the child’s name, and the placement dates. Agencies and courts would need to furnish the statem…
- More outreach to help foster families: benefit, low. HHS, with Treasury, would expand outreach and education on tax rules that can help foster families. The bill would allow “such sums as necessary” for this work. This would apply to months after December 31, 2024, in tax years that start after that date.
- Stronger checks on foster credit claims: cost, medium. If enacted, the IRS would block the foster care credit after improper claims. A fraud finding would trigger a 10‑year ban on the credit. A finding of reckless or intentional disregard (not fraud) would trigger a 2‑year ban. If the credit was denied under deficiency procedures, you would need to giv…

## Related bills

- 119-hr-3151: SHIPS for America Act of 2025
- 119-hr-1262: Mikaela Naylon Give Kids a Chance Act
- 119-hr-842: Nancy Gardner Sewell Medicare Multi-Cancer Early Detection Screening Coverage Act
- 119-hr-979: AM Radio for Every Vehicle Act of 2025
- 119-hr-1329: Smithsonian American Women’s History Museum Act
- 119-hr-1993: 25th Anniversary of 9/11 Commemorative Coin Act

## Sources
- [119-hr-2438 on Congress.gov](https://www.congress.gov/bill/119th-congress/house-bill/2438)

## Related
- [119-hr-3151: SHIPS for America Act of 2025](https://policyrisk.com/legislation/119-hr-3151)
- [119-hr-1262: Mikaela Naylon Give Kids a Chance Act](https://policyrisk.com/legislation/119-hr-1262)
- [119-hr-842: Nancy Gardner Sewell Medicare Multi-Cancer Early Detection Screening Coverage A…](https://policyrisk.com/legislation/119-hr-842)
- [119-hr-979: AM Radio for Every Vehicle Act of 2025](https://policyrisk.com/legislation/119-hr-979)
- [119-hr-1329: Smithsonian American Women’s History Museum Act](https://policyrisk.com/legislation/119-hr-1329)
- [119-hr-1993: 25th Anniversary of 9/11 Commemorative Coin Act](https://policyrisk.com/legislation/119-hr-1993)
- [All bills in Congress](https://policyrisk.com/legislation)

Source: PRIA, https://policyrisk.com/legislation/119-hr-2438 (as of 2026-09-21).