On the campaign trail, President Trump and Vice President Vance proposed a significant increase in the child tax credit (CTC). In an interview last August, then-Senator J.D. Vance shared his desire to boost the CTC to $5,000 per child from the $2,000 per child established in the Tax Cuts and Jobs Act of 2017 (TCJA). As a member of the House Ways and Means Committee involved in negotiating our big, beautiful budget reconciliation bill, I am joining the Administration in its vision to support American families and bringing Utah’s effective pro-family and pro-growth policies to the table.
The CTC is one of the few policies that helps offset the large burden parents bear for our national economic good and provides much-needed relief to pay for everyday family expenses, from diapers to medical bills to childcare to groceries. TCJA streamlined child tax benefits by eliminating dependent exemptions to enhance the CTC, and data from Yale University’s Budget Lab estimated that this saved most parents an average of $400 in taxes per child. Unfortunately, record-high inflation and increased costs of living have eroded the value of this $2,000 credit. Now, with the Tax Cuts and Jobs Act set to expire at the end of this year, the CTC will be cut in half to $1,000. The CTC is not indexed to inflation, so just to retain the same value of the credit as it had in 2017, the credit must be increased to $2,500 and tied to inflation.
This is important because strong families are our nation’s secret sauce. We have mountains of data demonstrating the joy and sense of purpose children bring. Moreover, hardworking Americans who take on the load of raising kids are the cornerstone of our workforce, economic growth and entitlement programs that support the vulnerable and the elderly. Aside from the cultural benefits of a pro-family society, we need more children in our nation to support our economy and retirement programs. Without the sacrifices of women and men who choose to have kids, our budget hollows out and our economic security erodes. The fertility rate has a direct impact on the programs Americans have come to rely on. For example, when Social Security began in 1940, there were 159.4 workers per retiree, but now there are just 2.8 workers per retiree. Social Security funds are expected to deplete by 2034, but we are legislating on the right and the left as if having kids is a personal consumer choice like taking a vacation.
Earlier this year, I introduced legislation to address this and provide financial relief to American parents — the Family First Act. This bill seeks to reform the tax code to include an enhanced and modernized CTC and a bonus for pregnant mothers to help meet the needs of working families and contribute to a pro-family culture.
Too often, federal policies aren’t oriented toward helping working families succeed. While the fertility rate has dropped below the replacement rate, Americans persistently say that they desire more children than they have but are stymied by factors such as delayed marriage, personal debt, housing affordability and economic uncertainty. According to a 2023 Gallup poll, 44% of Americans believe two children is the ideal family size, and 45% of Americans favor having three or more children. While the CTC can’t singly increase the birth rate, the Family First Act is a fairness measure that streamlines the tax code to work for, not against, the families who dive in to raising kids. Allowing parents to keep more of their money helps them pay off debt and afford the basics as they voluntarily take on the future cost of our entitlement programs.
The Family First Act is driven by Utah’s success. A father to four boys, I represent America’s youngest state. We pride ourselves on policies that yield supportive communities, strong family values, one of the nation’s highest birthrates, the highest percentage of households with children under 18, a top-ranking economy and a reputation as one of America’s happiest states. The correlation is clear to me: when the government lets parents keep more of their own money, communities and the economy thrive.
It’s time for a fundamental shift in how our government addresses the needs of American families. Raising the CTC is fair to parents, facilitates their desire to have children and keeps our economy on track. Increasing the CTC is also a major step in advancing the future-oriented, purpose-driven policymaking that our country must embrace to survive.