The proposed legislation includes provisions to repeal existing child tax credits and the earned income tax credit, reallocating the funds towards direct child assistance payments. Each qualifying child would receive monthly payments, calculated based on the annual poverty guidelines. These changes mark a significant shift in how child poverty is addressed in the U.S., emphasizing direct financial assistance over tax credits, which some critics believe do not effectively support the poorest families.
Summary
House Bill 2540, known as the 'End Child Poverty Act', proposes the establishment of a Universal Child Assistance program aimed at providing financial support to families with qualifying children. The bill outlines the definition of a qualifying child and assigns the responsibility for implementation and oversight of the program to the newly created Office of Universal Child Assistance within the Social Security Administration. This office will be led by a Deputy Commissioner appointed by the Commissioner of Social Security.
Contention
While the bill has garnered support from advocates for child welfare due to its potential to reduce child poverty rates, it has also faced opposition. Critics argue that repealing the child tax credit and earned income tax credit could negatively impact families who benefit from those provisions, leaving a gap in support for those who might not qualify under the new Universal Child Assistance guidelines. Discussions around the legislative intent and implications on existing welfare and economic systems are ongoing.
New Parents Act of 2023 This bill allows parents to use a portion of their Social Security benefits for up to three months of paid parental leave after the birth or adoption of a child. To receive the parental leave benefit, parents must choose to either increase their retirement age or temporarily receive a reduction in Social Security benefits upon retirement, as specified.