During this election year, with the economy being a big concern for voters, House Republicans have introduced a major new bill called the “Big Beautiful Bill.” It includes tax changes, savings incentives, and some big updates to the Child Tax Credit (CTC). Many see it as an effort to bring back President Donald Trump’s economic ideas. But it’s stirring up controversy, especially because it could leave out many low-income families and families with immigrant parents.
What’s in the bill?
The bill, officially called The One Big, Beautiful Bill, would raise the CTC from $2,000 to $2,500 per child—but only for a few years (2025–2028). The increase would be gradual:
- $2,300 in 2025
- $2,400 in 2026
- $2,500 in 2027 and 2028
After that, it would go back down to $2,000, with small yearly adjustments for inflation.
Abridged recap on the essence of the child tax credit
The Child Tax Credit (CTC) is a federal tax benefit designed to help families offset the cost of raising children. As of 2024, eligible families can claim up to $2,000 per qualifying child under the age of 17. A portion of this credit is refundable, meaning that if the credit exceeds the amount of taxes owed, families can receive the difference as a refund.
The Child Tax Credit (CTC) has long been a cornerstone of financial support for American families. In 2025, significant changes are on the horizon, with Republican lawmakers proposing an increase in the credit from $2,000 to $2,500 per child for tax years 2025 through 2028. The increase is intended to account for inflation and provide additional support to families.
However, these changes come with complexities that could affect millions of families, particularly those with lower incomes or undocumented parents.
Impact on Families with Undocumented Parents & Low-Income Families
The proposal includes stricter eligibility requirements, wherein the necessity for both parents in a married household to have Social Security Numbers (SSNs) to claim the credit is compulsory. This change could disqualify many undocumented immigrants, even if their children are U.S. citizens, potentially affecting 2 to 4.5 million children.
Also, the current structure of the CTC includes a minimum income threshold, below which families receive a reduced credit or none at all. So even though it sounds like a bigger credit is a good thing, most of the benefits would go to middle- and upper-income families. Low-income families would still struggle to qualify because of income requirements that weren’t removed.
The poorest 20% of families would get only 2% of the total benefit from the changes. Meanwhile, 60% of the money would go to the top 40% of earners.
This means that many families who need the support the most may not benefit fully from the increase.
What do Democrats say?
Senate Democrats are strongly against the plan. Senate Majority Leader Chuck Schumer called it “complete nonsense” that Republicans claim Democrats don’t support the Child Tax Credit.
He reminded everyone that it was the Democrats who expanded the CTC in 2021, cutting child poverty in half that year. Senator Ron Wyden (D-Oregon) said the Republican plan blocks more meaningful changes that could have helped over 16 million children.
A different bipartisan bill—the Tax Relief for American Families and Workers Act of 2024—had passed the House but was blocked by Republicans in the Senate.
What’s next?
The bill has to pass the Senate, but it won’t since Democrats don’t want it—most importantly, because of the provision that discriminates against children with undocumented parents.
