GBPI applauds introduction of the American Family Act, 2025

GEORGIA — On April 9, U.S. Sen.

Raphael Warnock, D-Georgia, introduced the American Family Act, which would expand the federal refundable child tax credit (CTC). This bill would enhance the credit so that it would increase benefits and reach more families with children.The Georgia Budget and Policy Institute supports this legislation as it would support American families by covering some of the costs of raising children and by reducing economic hardship.



Specifically, this bill would benefit more than 87% of Georgia children, enhancing the existing CTC of $2,000 per child to $4,320 for children under 6 and to $3,600 for children between ages 6 to 17.The legislation also creates a “baby bonus” of $2,360 for newborns, while indexing the value of the CTC in future years to ensure it keeps pace with inflation.“Poverty is a policy choice,” said Ife Finch Floyd, director of Economic Justice at GBPI.

“We do not have to accept poverty, which disproportionately harms Black and brown children now and in the future. Instead, we can implement a robust child tax credit, which is one of the most direct ways to improve racial equity, family economic security and the long-term well-being of children.”There is clear evidence that this proposal would significantly reduce poverty.

In 2021, a temporary expansion to the CTC’s benefits and reach drove down child poverty across the country, especially for Black, Latinx and indigenous children. Columbia University’s Center on Poverty and Social Policy estimates that child poverty in Georgia dropped by more than 40% in 2021. Unfortunately, Congress did not make the enhancements permanent, and in 2022, child poverty rose again.

Child tax credits are growing in popularity as an effective way to support families. Sixteen states have created state CTCs. Last week, the Georgia General Assembly passed House Bill 136 to create a non-refundable credit of up to $250 per child for families with young children and to expand the state’s existing Child and Dependent Care Tax Credit to match 50% of the federal level, which is pending Gov.

Kemp’s signature. Non-refundable credits off-set but cannot exceed the amount in income taxes owed to the state.“The American Family Act would make a generational investment in Georgia families to address the costs of raising children, which causes billions in economic losses each year as families struggle to balance their obligations as parents with the challenges of making ends meet,” said Danny Kanso, senior fiscal analyst at GBPI.

“Rather than doubling down on costly policies that deliver outsized benefits to those already at the top of the income ladder, our federal leaders should prioritize working families by strengthening the Child Tax Credit.”The Georgia Budget and Policy Institute examines the state’s budget, taxes and public policies to provide analysis and solutions that address inequities in the state.The post GBPI applauds introduction of the American Family Act, 2025 appeared first on Dalton Daily Citizen.

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