Bipartisan Bill Restoring a Child Tax Credit Passes House

Ron Cogswell

The House of Representatives passed a $78 billion bipartisan tax bill which, among other things, would restore an enormously important child tax credit to millions of American families.

The bill prevailed despite pressure from ultraconservative House Republicans on Speaker Mike Johnson, by a vote of 357-70—and with more Democratic votes than Republican.

It will now head to the Senate, where it is expected to face stiff opposition from far right Republicans in that chamber as well.

Two critical provisions of the bill include a partial restoration of the child tax credit and an increase to the Low-Income Housing Tax Credit.

Though the child tax credit will not be brought back to its Covid-era height, which studies showed effectively cut child poverty in half, it will provide meaningful assistance to struggling families. 

The provision is laddered: granting a credit of $1,800 per child for 2023, $1,900 per child for 2024, and $2,000 per child for 2025.

Co-sponsor Ron Wyden, a Democratic Congressman, said of the child tax credit that “fifteen million kids from low-income families will be better off as a result of this plan, and given today's miserable political climate, it's a big deal to have this opportunity to pass pro-family policy that helps so many kids get ahead.”

The Low-Income Housing Tax Credit expansion will offer increased tax incentives to those providing rental housing for lower-income tenants.