Family First Act
- Bill Number
- S. 1382
- Origin Chamber
- Senate
- Congress
- 119th Congress, Session 1
- Policy Area
- Taxation
- Status
- Introduced
- Latest Action
- 2025-04-09: Read twice and referred to the Committee on Finance.
- Last Updated
- 2026-01-21T04:45:28Z
AI-Generated Summary
Purpose of the Legislation
The "Family First Act" (S. 1382) aims to provide enhanced tax relief to families by permanently expanding the child tax credit, introducing a new tax credit for pregnant mothers, and making adjustments to other tax provisions related to dependents, income, and deductions. It seeks to simplify and strengthen support for parents and children while eliminating certain existing tax benefits to offset costs.
Key Provisions
- Permanent Expansion of the Child Tax Credit (Section 101):
- Provides a credit of up to $4,200 per qualifying child under age 6 and $3,000 per child aged 6 to 16 (as of year-end).
- The credit is fully refundable (meaning taxpayers can receive it even if they owe no taxes) and phases in for low-income earners (below $20,000 modified adjusted gross income, or MAGI, which is income after certain deductions plus some exclusions like foreign earned income).
- Phases out for higher earners (reduced by $50 for each $1,000 over $200,000 for singles or $400,000 for joint filers).
- Limited to 6 qualifying children per family; requires Social Security numbers (SSNs) for taxpayers and children (U.S. citizens or certain eligible noncitizens).
- Extends eligibility to residents of Puerto Rico and, under certain conditions, American Samoa.
- Amounts adjust for inflation starting in 2027.
- New Tax Credit for Pregnant Mothers (Section 102):
- Offers a $2,800 credit per qualifying unborn child at 20 weeks gestation or more.
- Similar phase-in for low-income (below $10,000 MAGI) and phase-out for high-income earners as the child tax credit.
- Requires physician certification of gestational age (based on medical exams) and a form with SSNs; the mother must affirm biological relation or intent to parent.
- Applies even if the unborn child dies naturally or due to life-saving treatment for the mother (e.g., ectopic pregnancy), but not if due to induced abortion.
- Allows credit for multiple pregnancies or multiples in one year; does not affect post-birth child tax credit.
- Fully refundable; inflation-adjusted after 2026.
- Simplification of Earned Income Tax Credit (EITC) for Taxpayers with Children (Section 201):
- Increases credit rates and amounts for those with children (e.g., up to $12,647 earned income threshold for full credit; phase-out starts at $33,000 for singles).
- Caps maximum credits (e.g., $5,000 for joint filers with children) and simplifies by combining categories for 1+ children.
- Higher thresholds for joint filers; inflation-adjusted from 2026.
- Exempts certain children (e.g., those qualifying under dependency rules for noncustodial parents) from new limits.
- Elimination of Additional Exemption for Dependents (Section 202):
- Sets the personal exemption amount for dependents to zero starting in 2026, removing the $4,700 (2024 figure) deduction per dependent.
- Elimination of Head of Household Filing Status (Section 203):
- Removes this status (which provides lower tax rates and higher standard deductions for unmarried parents with dependents), requiring such filers to use single status.
- Makes conforming changes to other credits and deductions (e.g., adjusts phase-outs for electric vehicle and education credits).
- Exclusion of Children from Dependent Care Credit (Section 204):
- Limits the credit (for work-related care expenses) to disabled dependents over age 17; excludes children under 17.
- Care outside the home only qualifies if the dependent spends at least 8 hours daily there.
- Denial of Deduction for State and Local Taxes (SALT) for Individuals (Section 205):
- Eliminates the deduction for state/local income, sales, and property taxes for individual taxpayers (businesses and foreign taxes exempt).
- Applies to payments after 2025, even if related to earlier years.
All changes apply to tax years beginning after December 31, 2025.
Significant Changes to Existing Law
- Child Tax Credit: Transforms it from partially refundable (up to $1,700 in 2024, temporary expansions expired) to fully refundable with higher, permanent amounts; relocates it to the refundable credits section (new Section 36C); caps at 6 children (no prior limit); excludes certain noncitizen children more strictly.
- New Pregnant Mothers Credit: Introduces an entirely new refundable credit (Section 36D) not previously in law, with unique certification requirements.
- EITC: Simplifies by merging tiers for families with children, nearly doubles some amounts and thresholds (e.g., from $3,995 max for 2+ children in 2024), but adds caps; updates inflation base year.
- Exemptions and Filing Status: Permanently ends dependent exemptions (suspended since 2018 Tax Cuts and Jobs Act) and head of household status (in place since 1913), shifting more taxpayers to single rates and potentially increasing their tax liability.
- Dependent Care Credit: Narrows eligibility from children under 13 to only disabled adults over 17, reducing scope significantly.
- SALT Deduction: Makes permanent the 2018 suspension for individuals (previously capped at $10,000), fully eliminating it for non-business use.
Potential Impacts
- On Citizens: Provides greater financial support for low- and middle-income families (e.g., up to $25,200 for 6 young children via CTC), benefiting about 40 million households; pregnant women gain new relief. However, single parents lose head of household benefits (potentially $2,000+ higher taxes annually), families lose dependent care credits for kids, and higher earners/middle-class in high-tax states face increased federal taxes without SALT deductions (average $1,000+ loss). Low-income non-filers may need to file to claim refunds.
- On Government Agencies: Increases IRS administrative burden (e.g., verifying physician forms, SSNs, and inflation adjustments); boosts refund payouts (estimated $100B+ annual cost for credits), reducing federal revenue. Treasury may see offsets from eliminations (e.g., $1T+ over 10 years from no exemptions/SALT). Social Security Administration involved in SSN validation.
- On International Relations: Minimal direct impact; excludes certain foreign income/exemptions consistently but no broader effects.
Main Stakeholders Affected
- Families with Children/Pregnant Women: Primary beneficiaries of expanded CTC and new credit; low-income and large families gain most.
- Single Parents/Unmarried Caregivers: Negatively affected by loss of head of household status and dependent care for kids.
- High-Income Taxpayers in High-Tax States: Hurt by permanent SALT elimination (e.g., in CA, NY).
- Low-Income Workers: Benefit from simplified/higher EITC but face new caps.
- Tax Preparers/Physicians: Increased duties (e.g., penalties for EITC/CTC errors; certification forms for unborn child credit).
- States and Local Governments: Reduced federal deductibility of taxes may indirectly pressure state budgets as residents face higher effective costs.
- Noncitizen Families: Stricter SSN rules limit access for some immigrant children.
Notable Legal, Constitutional, or Political Implications
- Legal: Introduces enforceable requirements like physician certifications under penalty of perjury (28 U.S.C. § 1746), potentially leading to IRS audits or disputes over "reasonable medical judgment." Excludes abortion-related losses, tying tax policy to reproductive health definitions. Caps on children/EITC may face challenges if seen as arbitrary.
- Constitutional: The unborn child credit's recognition of fetuses at 20 weeks could intersect with privacy rights (e.g., Roe v. Wade precedents, though overturned) or equal protection, but as voluntary tax incentives, it likely withstands scrutiny. Eliminating filing statuses/exemptions aligns with prior reforms but may raise due process claims for unequal treatment of family structures.
- Political: Emphasizes pro-family incentives, appealing to conservative priorities (e.g., fetal inclusion, abortion exclusion) while expanding refundables for broader support; offsets via eliminations target fiscal conservatives. Could spark debates on equity for single vs. married parents or urban vs. rural taxpayers, influencing future tax reform.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Recent Actions
- 2025-04-09: Read twice and referred to the Committee on Finance.
- 2025-04-09: Introduced in Senate
Bill Versions
- Family First Act — issued 2025-04-09 — PDF (34 pages)