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Chairman Smith: Working Families Tax Cuts Lowers the High Cost of Raising a Family 

March 17, 2026

WASHINGTON, D.C. – The Working Families Tax Cuts put more money back in the pockets of parents starting and raising a family. Republicans made multiple tax credits more valuable for families struggling to afford the high cost of living, including childcare: the Child Tax Credit, Adoption Tax Credit, Trump Accounts, 529 education plans, Paid Leave Tax Credit, Child/Dependent Care Credit, and Employer-Provided Childcare Credit.

The Working Families Tax Cuts permanently locked in the more-than-doubled Child Tax Credit to $2,200 per child, and ensured the credit never loses value by increasing annually with inflation. Without passage of this legislation, the Child Tax Credit would have reverted to $1,000 per child in 2026. The larger credit will help 40 million families better afford the cost of living.

“The Republican Party is the pro-family party, and that’s why we cut hundreds of billions in taxes for millions more moms and dads. Forty million families will keep over $800 billion more of their own money to raise their kids, thanks to the more-than-doubled $2,200 Child Tax Credit. The 3.5 million families signed up for Trump Accounts so far will save more for their child’s future, with families saving over $15 billion total. A more accessible Adoption Tax Credit will deliver more than $2 billion in relief to more than 57,000 families experiencing the joy of adoption, and the expanded Child and Dependent Care Credit lowers the cost of childcare for 6.5 million working families by over $9 billion,” said Ways and Means Committee Chairman Jason Smith (MO-08). “The Biden Inflation Crisis made it harder and more expensive for parents to take care of their children. President Trump and Republicans are making it easier and more affordable to start, raise, educate, and care for a family.”

At a Ways and Means Committee hearing in Las Vegas, Nevada mother Yadusha Jones shared how the expanded Child Tax Credit will make a difference for her family: 

“It means a lot. We have kids in elementary all the way up to high school. It gives us the opportunity. We have a daughter — she can start driving soon. We’ll be able to help her purchase a car. We want to show her work ethic, so we are going to match what she brings to the table. We are not just going to hand her money. It’s all about work ethic.”


Pro-Family Tax Cuts in the Working Families Tax Cuts 

  • Child Tax Credit: Saves the credit from being slashed in half, increases it to $2,200 per child, and permanently indexes the credit to inflation so it never loses any of its value. 
  • Trump Accounts: New savings accounts for children up to 18 with newborns receiving a $1,000 deposit from the federal government. Parents, employers, and philanthropists can contribute a combined $5,000 per year to a child’s account.
  • Adoption Tax Credit: Increases access to the existing $17,280 credit by making up to $5,000 refundable and indexing the credit to inflation, opening more homes to the joy of adoption and championing the sanctity of life. 
  • 529 Accounts: For the first time, 529 saving accounts can cover costs for career and technical education, educational materials, and more. The limit for K-12 tuition doubled to $20,000 per year. 
  • Paid Family and Medical Leave Tax Credit: Expands incentives for businesses to offer paid leave benefits during critical life events, like the birth of a new child, by making more employer programs eligible for the credit. 
  • Child and Dependent Care Credit: Parents can now claim up to 50 percent of up to $6,000 in qualifying childcare costs, making childcare more affordable for low- and middle-income families. 
  • Employer-Provided Childcare Credit: Increases incentives for employers, especially small businesses, to offer childcare as a benefit for employees by raising the maximum credit for providing childcare and by allowing more flexibility in care arrangements.

How the Working Families Tax Cuts Deliver for Working-Class Americans:  

  • No tax on tips provides an average $1,300 tax cut. 
  • No tax on overtime delivers an average $1,400 tax cut. 
  • The standard deduction is increased by $1,500 per family to $31,500. 
  • Married seniors will get a $12,000 deduction for their Social Security benefits. 
  • The Child Tax Credit expands to $2,200 and is permanently indexed for inflation, so the credit never loses value. 
  • Raises annual real wages by $7,200 per worker. 
  • Increases annual take-home pay for a typical family with two children by $10,900. 
  • A family of four with two children earning $73,000 has zero federal income tax liability.