S1393119th CongressWALLET

American Family Act

Sponsored By: Senator Michael Bennet

Introduced

Summary

Would create a refundable monthly child tax credit that would send recurring payments to families with qualifying children. It would also establish a separate $500 credit for other dependents and set up monthly advance payments and eligibility rules.

Show full summary
  • Families with children: Would provide a monthly allowance based on a $300 base amount with larger payments for younger children and a much larger first-month amount for newborns under one month.
  • Families with other dependents: Would offer a $500 credit per specified dependent, with income phaseouts beginning at $300,000 for most filers and steeper reductions above higher thresholds for joint filers.
  • Recipients and delivery systems: Would create monthly advance payments and a presumptive eligibility process for new or unstable households, require a multilingual online portal, direct electronic payments when possible, protect payments from many federal offsets, and include a two-month lookback rule for garnishment exemptions.

Bill Overview

Analyzed Economic Effects

4 provisions identified: 1 benefits, 1 costs, 2 mixed.

New $500 credit for other dependents

If enacted, the bill would create a $500 annual credit for each dependent who is not a specified child for any month of the year. The $500 would be prorated if the dependent turns 18 during the year. The credit would be reduced by $50 for each $1,000 (or fraction) your modified AGI is above your filing-status threshold: $400,000 for married filing jointly, $200,000 for married filing separately, and $300,000 for other filers.

Bigger monthly child payments for families

If enacted, the bill would create a new monthly child payment instead of the old annual credit. Base monthly amounts would be $300 for each child age 6 or older, $360 for each child under 6, and $2,400 for a child under one month. The $300 base would be indexed for inflation for months after Dec. 31, 2025. Monthly payments would be cut in two stages when your modified AGI is over set thresholds (initial and secondary thresholds vary by filing status). The bill would not allow the prior annual child tax credit for tax years starting after Dec. 31, 2024.

Monthly advance payments and protections

If enacted, the bill would let the IRS make monthly advance child payments while you are presumptively eligible. The agency must estimate payments using a reference month and year and offer an online portal to enroll. Payments would be made by electronic transfer and include unique ACH coding. Monthly amounts would be refundable for months when you (or your spouse) lived in the U.S. or Puerto Rico more than half the month. The bill would protect most advance payments from garnishment and require annual notices. Your annual credit would be reduced by the total monthly advances, and the IRS can raise your tax if advances exceed the allowed credit when the excess is due to fraud, reckless disregard, or income/filing changes.

Rules for qualifying children and penalties

If enacted, the bill would require you to list each child's name and TIN on your tax return to claim the credit. The credit is denied if the child's or your TIN was issued after the return due date. A 'specified child' test would require the child to live with you more than half the month, be under 18 at month-end, be younger than you, and receive unpaid care from you. The bill sets tie-breaker rules when multiple people claim the same child. It would bar people from getting the credit for 10 years after fraud or for 2 years after reckless or intentional disregard.

Sponsors & CoSponsors

Sponsor

Michael Bennet

CO • D

Cosponsors

  • Cory Booker

    NJ • D

    Sponsored 4/9/2025

  • Raphael Warnock

    GA • D

    Sponsored 4/9/2025

  • Catherine Cortez Masto

    NV • D

    Sponsored 4/9/2025

  • Richard Durbin

    IL • D

    Sponsored 4/9/2025

  • Ron Wyden

    OR • D

    Sponsored 4/9/2025

  • Angela Alsobrooks

    MD • D

    Sponsored 4/9/2025

  • Tammy Baldwin

    WI • D

    Sponsored 4/9/2025

  • Richard Blumenthal

    CT • D

    Sponsored 4/9/2025

  • Lisa Blunt Rochester

    DE • D

    Sponsored 4/9/2025

  • Maria Cantwell

    WA • D

    Sponsored 4/9/2025

  • Christopher Coons

    DE • D

    Sponsored 4/9/2025

  • Tammy Duckworth

    IL • D

    Sponsored 4/9/2025

  • John Fetterman

    PA • D

    Sponsored 4/9/2025

  • Ruben Gallego

    AZ • D

    Sponsored 4/9/2025

  • Kirsten Gillibrand

    NY • D

    Sponsored 4/9/2025

  • Maggie Hassan

    NH • D

    Sponsored 4/9/2025

  • Martin Heinrich

    NM • D

    Sponsored 4/9/2025

  • Mazie Hirono

    HI • D

    Sponsored 4/9/2025

  • Timothy Kaine

    VA • D

    Sponsored 4/9/2025

  • Mark Kelly

    AZ • D

    Sponsored 4/9/2025

  • Andy Kim

    NJ • D

    Sponsored 4/9/2025

  • Angus King

    ME • I

    Sponsored 4/9/2025

  • Amy Klobuchar

    MN • D

    Sponsored 4/9/2025

  • Sen. Luján, Ben Ray [D-NM]

    NM • D

    Sponsored 4/9/2025

  • Edward Markey

    MA • D

    Sponsored 4/9/2025

  • Jeff Merkley

    OR • D

    Sponsored 4/9/2025

  • Christopher Murphy

    CT • D

    Sponsored 4/9/2025

  • Patty Murray

    WA • D

    Sponsored 4/9/2025

  • Alex Padilla

    CA • D

    Sponsored 4/9/2025

  • Gary Peters

    MI • D

    Sponsored 4/9/2025

  • John Reed

    RI • D

    Sponsored 4/9/2025

  • Jacky Rosen

    NV • D

    Sponsored 4/9/2025

  • Bernie Sanders

    VT • I

    Sponsored 4/9/2025

  • Brian Schatz

    HI • D

    Sponsored 4/9/2025

  • Adam Schiff

    CA • D

    Sponsored 4/9/2025

  • Charles Schumer

    NY • D

    Sponsored 4/9/2025

  • Jeanne Shaheen

    NH • D

    Sponsored 4/9/2025

  • Elissa Slotkin

    MI • D

    Sponsored 4/9/2025

  • Tina Smith

    MN • D

    Sponsored 4/9/2025

  • Chris Van Hollen

    MD • D

    Sponsored 4/9/2025

  • Mark Warner

    VA • D

    Sponsored 4/9/2025

  • Elizabeth Warren

    MA • D

    Sponsored 4/9/2025

  • Peter Welch

    VT • D

    Sponsored 4/9/2025

  • Sheldon Whitehouse

    RI • D

    Sponsored 4/9/2025

Roll Call Votes

No roll call votes available for this bill.

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