The Stronger Start for Working Families Act, a bipartisan bill in the U.S. House, would lower the earned-income threshold for the refundable Child Tax Credit from $2,500 to $1 so low-income parents can begin receiving benefits from their first dollar of work. The refundable portion of the credit is worth up to $1,700 per child for 2025 and is projected to remain $1,700 for 2026. Supporters say the change would deliver immediate tax relief to families with very low earnings and help more children access the credit.
New Bipartisan Bill Would Let Low-Income Families Earn Child Tax Credit From First Dollar
Stock image/file photo: Little girl putting coin of cash into ceramic piggy bank.
The Stronger Start for Working Families Act, a bipartisan bill introduced in the U.S. House, would let nearly all working families begin to build the refundable portion of the federal Child Tax Credit (CTC) from the first dollar they earn. The proposal, sponsored by Republican Representatives Carol Miller and María Salazar and Democratic Representatives Steven Horsford and Chris Pappas, would lower the earned-income threshold for the refundable credit — the Additional Child Tax Credit (ACTC) — from $2,500 to $1.
What the Bill Would Change
Under current law, families generally must report at least $2,500 in earnings from work or self-employment before they can receive any refundable portion of the CTC. Above that threshold, the refundable amount typically grows at a rate equal to 15% of earnings over $2,500, up to the maximum refundable amount per child. For 2025, the refundable portion is worth up to $1,700 per qualifying child.
The Stronger Start Act would lower the starting point to $1, allowing low-income parents to begin accumulating refundable credit from virtually their first dollar of wages instead of receiving nothing on their first $2,500 of earnings. For example, someone earning $10,000 currently has $7,500 above the $2,500 threshold; at 15%, that yields up to $1,125 in refundable credit. Dropping the threshold to $1 would let parents begin to build refundable benefits much earlier in their earnings trajectory.
"The Stronger Start for Working Families Act is a common-sense piece of legislation designed to help our families across the country who are struggling with the rising costs of raising a child," Representative Carol Miller said. "By lowering the earned income limit, we can ensure parents start receiving much-needed Child Tax Credit benefits from the very first dollar they earn."
"Families in New Hampshire are working hard and still coming up short. Child care for a family with two kids costs close to $32,000 a year here," Representative Chris Pappas said. "Let families start earning the credit with their first dollar of work so we can put money back in their pockets."
Support, Impact Estimates and Context
The bill has drawn support from child-advocacy and anti-hunger organizations including Save The Children, Bipartisan Policy Center Action, and Bread for the World. Advocates say the change would provide immediate, meaningful tax relief to families with very low earnings and could encourage workforce participation.
An analysis by the Center on Budget and Policy Priorities estimated that an estimated 19 million children under 17 — more than one in four nationwide — may receive less than the full CTC (or no credit at all) in 2026 because their families earn too little to access the refundable portion. As an illustrative example from current rules, a single parent with two children would need to earn at least $34,150 in 2026 to qualify for the full $4,400 credit for two children; the Stronger Start Act would not change the maximum credit but would allow the refundable portion to begin accruing at a much lower earnings level.
The CBPP analysis also identified disparities by community and race: the share of children expected to receive less than the full credit is higher in rural areas, and disproportionately affects Black, Latino, and American Indian or Alaska Native children.
Legislative Background
The proposal arrives against changes made by H.R. 1, the One Big Beautiful Bill Act, which became law on July 4, 2025. H.R. 1 made permanent several CTC expansions that had been scheduled to expire, raised the maximum credit to $2,200 per qualifying child for 2025, and required the maximum credit to increase annually with inflation. It also tightened identification rules so that, beginning with the 2025 tax year, taxpayers (or at least one spouse on a joint return) and each qualifying child generally must have a Social Security number to claim the credit.
The Stronger Start for Working Families Act has been introduced and referred to the House Ways and Means Committee for consideration.
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