FISC Act

Bill Number

H.R. 1308

Origin Chamber

House

Congress

119th Congress, Session 1

Policy Area

Taxation

Status

Introduced

Latest Action

2025-02-13: Referred to the House Committee on Ways and Means.

Last Updated

2026-04-20T14:53:57Z

AI-Generated Summary

Purpose

The Family Income Supplemental Credit Act (FISC Act) aims to provide direct monthly cash payments to eligible pregnant women and parents or caregivers of young children. This support is intended to help families better afford the costs of raising children and supporting other family members, replacing the existing child tax credit system with a more immediate payment mechanism.

Key Provisions

• Eligibility and Applications:
• Pregnant women can apply for payments once their pregnancy reaches at least 20 weeks, providing details like expected due date, income, marital status, and prenatal care provider.
• Qualified caregivers (adults 18+ who live with and financially support the child) can apply for children under 18 who are U.S. citizens, nationals, or permanent residents and who do not provide more than half of their own financial support.
• Applications are submitted to the Commissioner of Social Security, including personal details, child's age and ID numbers, and income from the most recent tax year.
• Fraud findings disqualify caregivers after a hearing.

• Payment Amounts and Rules:
• $800 per month for eligible pregnancies.
• $400 per month for children under 6 years old; $250 per month for children 6–17 years old.
• A 20% bonus applies if the recipient is married (for pregnancies) or married to the child's caregiver.
• Payments phase out for higher earners: reduced by $16.67 for every $1,000 of adjusted gross income (AGI) over $125,000 (single) or $250,000 (joint filers), but not below zero.
• Total payments cannot exceed one-twelfth of the recipient's (and spouse's, if applicable) AGI from the prior year.
• Only one caregiver per child receives payments.
• Post-birth, pregnancy benefits automatically convert to child benefits for 90 days, with no interruption or repayment required if the new application is delayed or denied.

• Administration and Oversight:
• The Social Security Administration (SSA) handles applications, payments, and a new Bureau of Family Statistics to collect data.
• A system for reporting changes in marital or caregiver status is required.
• Annual reports to Congress on processing times, improvement recommendations, and total payments.
• Funding is appropriated from general Treasury funds as needed.
• Effective date: Starts one year after enactment.

Significant Changes to Existing Law

• Repeals the Child Tax Credit (Section 24 of the Internal Revenue Code), which previously provided an annual tax refund or credit for qualifying children.
• Makes numerous conforming amendments to the tax code, removing references to the child tax credit in areas like tax withholding, deficiency calculations, and advance refund rules (e.g., Sections 26, 45R, 152, 3402, 6211, 6402, and others).
• Introduces a transition rule for the first tax year overlapping the new program's start: The old child tax credit is prorated based on months before the new payments begin.
• Shifts from an annual, tax-based credit (claimed at filing or via advance payments) to ongoing monthly direct payments administered by SSA rather than the IRS.

Potential Impacts

• On Government Agencies: The SSA gains new responsibilities for processing applications, payments, and data collection, potentially increasing administrative workload and costs. The IRS sees reduced duties related to the child tax credit. Overall federal spending rises due to direct appropriations, with annual reports aiding efficiency monitoring.
• On Citizens: Low- and middle-income families, especially those with young children or expecting parents, gain more predictable monthly support (up to $800/pregnancy or $400–$500/child, plus bonuses), which could ease immediate financial pressures like childcare or healthcare. Higher-income families phase out and lose the old tax credit. Married families receive a slight boost.
• On International Relations: No direct impacts mentioned; eligibility is limited to U.S. citizens, nationals, and permanent residents.

Main Stakeholders Affected

• Families and Individuals: Pregnant women, parents, and caregivers of children under 18, particularly lower-income households who qualify for full payments.
• Government Entities: Social Security Administration (primary administrator), Internal Revenue Service (reduced role post-repeal), Congress (receives reports and oversees funding), and the Treasury (funds the program).
• Broader Groups: Taxpayers funding the appropriations; healthcare providers (via prenatal care verification); and statistical agencies benefiting from the new Bureau of Family Statistics.

Notable Legal, Constitutional, or Political Implications

• Legal: Establishes entitlements to benefits upon approval, with due process protections (e.g., hearings for fraud). Relies on SSA's existing authority but creates new regulations and a reporting system, potentially leading to litigation over eligibility determinations or phase-outs. The repeal of the child tax credit requires careful tax code adjustments to avoid gaps in related provisions.
• Constitutional: Falls under Congress's spending power (Article I, Section 8) to promote general welfare through family support programs. No apparent free speech, privacy, or equal protection issues, though income-based phase-outs could raise questions of fairness if challenged.
• Political: Represents a shift toward direct cash transfers (similar to universal basic income pilots) over tax incentives, potentially sparking debates on welfare expansion, work incentives (no explicit work requirements), and fiscal sustainability given open-ended appropriations. The marriage bonus may influence discussions on family policy.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Golden, Jared F. [D-ME-2]

Recent Actions

• 2025-02-13: Referred to the House Committee on Ways and Means.
• 2025-02-13: Introduced in House
• 2025-02-13: Introduced in House

Bill Versions

• Family Income Supplemental Credit Act — issued 2025-02-13 — PDF (14 pages)