Stronger Start for Working Families Act
- Sponsor
- Sen. Hassan, Margaret Wood [D-NH]
- Committees
- Finance Committee (primary)
- Last action
- Jan 8, 2026
Bottom line
The bill expands access to the full refundable Child Tax Credit for the lowest-income working families by nearly eliminating the earned income requirement, aiming to reduce child poverty.
What it actually does
This bill amends the Internal Revenue Code of 1986 to significantly lower the earned income threshold for the refundable portion of the Child Tax Credit (CTC) from $3,000 to $1. This change would allow more low-income families, particularly those with very little or no reported income, to access the full refundable amount of the CTC, thereby increasing financial support for these families.
Proponents argue
Proponents argue that this bill would lift millions of children out of poverty by ensuring that the Child Tax Credit reaches the families who need it most, including those with the lowest incomes who currently receive a reduced credit or no credit at all due to the existing income threshold. They emphasize that it provides crucial financial support for basic needs, childcare, and economic stability for vulnerable families.
Opponents contend
Opponents might argue that reducing the earned income threshold to $1 weakens the connection between work and benefits, potentially disincentivizing work for some families. They may also raise concerns about the significant cost to federal revenue and the potential for increased dependency on government programs, preferring a credit structure that more directly rewards work.
The bill text is extremely short and straightforward, making it very accessible for any reader to understand its core change quickly.
Section 2(a)
Modification of Earned Income Threshold for Refundable Child Tax Credit
This provision amends Section 24(d)(1)(B)(i) of the Internal Revenue Code of 1986 to reduce the minimum earned income required to qualify for the refundable portion of the Child Tax Credit from $3,000 to $1. This means that families with very low or no taxable earned income would become eligible to receive the full refundable credit, significantly expanding access to this benefit for the poorest households.
Supporters argue
Supporters contend that this change is a direct and effective way to combat child poverty, providing a lifeline to families struggling to meet basic needs. They argue that it ensures the credit reaches the children who need it most, regardless of their parents' current employment status or income level.
Critics contend
Critics may argue that lowering the threshold to $1 effectively delinks the credit from work requirements, potentially reducing incentives for employment. They might also express concerns about the fiscal implications of expanding eligibility so broadly without a significant earned income requirement.
Tradeoffs
The provision balances the goal of poverty reduction and direct support for vulnerable families against concerns about work incentives and the overall cost to the federal budget.