Safeguarding American Workers’ Benefits Act

Bill Number

H.R. 778

Origin Chamber

House

Congress

119th Congress, Session 1

Policy Area

Taxation

Status

Introduced

Latest Action

2025-01-28: Referred to the House Committee on Ways and Means.

Last Updated

2025-04-02T14:27:20Z

AI-Generated Summary

Purpose

The Safeguarding American Workers' Benefits Act (H.R. 778) aims to restrict eligibility for the child tax credit (CTC) and earned income tax credit (EITC) by requiring valid Social Security Numbers (SSNs) issued specifically to U.S. citizens or certain authorized individuals. This change seeks to ensure these tax benefits are available only to those with lawful status under U.S. immigration and social security rules, preventing claims by individuals without qualifying SSNs.

Key Provisions

• Child Tax Credit (CTC) Requirements: Amends Section 24(e) of the Internal Revenue Code (IRC) to deny the CTC for any qualifying child unless the taxpayer (and both spouses on a joint return) and the child provide an SSN. The SSN must be issued by the Social Security Administration (SSA) to:
• A U.S. citizen, or
• An individual under specific provisions of the Social Security Act (related to lawful admission for permanent residence or similar status).

The SSN must be issued before the tax return's due date.

• Earned Income Tax Credit (EITC) Requirements: Amends Section 32(m) of the IRC to apply the same SSN definition from the CTC provision, replacing broader prior language that allowed other identification numbers.
• Conforming Amendments: Updates Section 6213(g) of the IRC to reference the new SSN definition for restrictions on tax return math errors and deficiency notices, replacing references to taxpayer identification numbers (TINs).
• Effective Date: Applies to taxable years beginning after December 31, 2025.

Significant Changes to Existing Law

• Prior to this bill, the CTC and EITC could be claimed using an Individual Taxpayer Identification Number (ITIN)—a tax processing number issued by the IRS to individuals ineligible for an SSN, such as some non-citizen residents or undocumented immigrants. This bill eliminates ITIN eligibility by mandating SSNs issued under narrow criteria, excluding SSNs issued for work-authorized nonimmigrants (like certain temporary visas) or those without lawful permanent status.
• It standardizes the SSN definition across both credits, tightening verification and aligning with SSA issuance rules for citizens and lawful permanent residents.

Potential Impacts

• On Citizens and Residents: Eligible U.S. citizens and lawful permanent residents will see no change in access to these credits, but mixed-status families (e.g., citizen children with non-citizen parents lacking qualifying SSNs) may lose eligibility, potentially reducing tax refunds for low- and moderate-income households.
• On Government Agencies: The IRS will need to update processing systems to verify SSNs against SSA records more strictly, possibly increasing administrative costs and audit workloads. The SSA may face indirect pressure from higher demand for SSN issuances or verifications.
• On International Relations: Minimal direct impact, though it could affect perceptions of U.S. immigration policy by signaling stricter limits on benefits for non-citizens, potentially influencing bilateral discussions on migration.
• Broader economic effects may include reduced disposable income for affected families, influencing workforce participation among low-income groups.

Main Stakeholders Affected

• Taxpayers and Families: Primarily low- and moderate-income workers and families claiming the CTC or EITC, especially immigrant households where parents or children lack qualifying SSNs.
• Immigrant Communities: Non-citizens, including undocumented individuals and those with temporary statuses, who previously used ITINs to access these credits.
• Government Entities: The IRS (for tax administration) and SSA (for SSN issuance and verification).
• Advocacy Groups: Organizations supporting tax equity, immigrant rights, or low-income families may be involved in implementation or challenges.

Notable Legal, Constitutional, or Political Implications

• Legal: The bill reinforces existing IRC restrictions but narrows them, potentially leading to increased IRS enforcement actions or litigation over SSN verification processes. It aligns with prior laws like the Personal Responsibility and Work Opportunity Reconciliation Act of 1996, which limits federal benefits to citizens and qualified immigrants.
• Constitutional: Could raise equal protection concerns under the 14th Amendment if it disproportionately affects certain groups (e.g., legal residents), though courts have upheld similar benefit restrictions. No direct challenge to free speech or other rights is evident.
• Political: Positions the legislation as protecting benefits for "American workers," appealing to debates on immigration and fiscal responsibility. It may spark partisan divides, with supporters viewing it as fraud prevention and critics as discriminatory against vulnerable populations. Implementation post-2025 could influence future tax policy reforms.

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

Sponsor

Rep. Higgins, Clay [R-LA-3]

Cosponsors (24)

Rep. Cline, Ben [R-VA-6], Rep. Davidson, Warren [R-OH-8], Rep. Clyde, Andrew S. [R-GA-9], Rep. Norman, Ralph [R-SC-5], Rep. Weber, Randy K. Sr. [R-TX-14], Rep. Tiffany, Thomas P. [R-WI-7], Rep. Miller, Mary E. [R-IL-15], Rep. Roy, Chip [R-TX-21], Rep. Perry, Scott [R-PA-10], Rep. Gill, Brandon [R-TX-26], Rep. Rouzer, David [R-NC-7], Rep. Brecheen, Josh [R-OK-2], Rep. Biggs, Andy [R-AZ-5], Rep. Luna, Anna Paulina [R-FL-13], Rep. Cloud, Michael [R-TX-27], Rep. McGuire, John [R-VA-5], Rep. Harris, Andy [R-MD-1], Rep. Burlison, Eric [R-MO-7], Rep. Mace, Nancy [R-SC-1], Rep. Moore, Riley [R-WV-2], Rep. Biggs, Sheri [R-SC-3], Rep. Donalds, Byron [R-FL-19], Rep. Van Drew, Jefferson [R-NJ-2], Rep. Harris, Mark [R-NC-8]

Recent Actions

• 2025-01-28: Referred to the House Committee on Ways and Means.
• 2025-01-28: Introduced in House
• 2025-01-28: Introduced in House

Bill Versions

• Safeguarding American Workers’ Benefits Act — issued 2025-01-28 — PDF (3 pages)