The House Republican budget blueprint increases the maximum child tax credit to $2,500, and here's who qualifies

[UNITED STATES] House Republicans on Thursday moved ahead with President Donald Trump’s favored tax and spending legislation, which includes an increase to the child tax credit for certain families.

If approved, the House proposal would solidify the current $2,000 maximum child tax credit established under the 2017 Tax Cuts and Jobs Act (TCJA), preventing it from dropping to $1,000 after 2025 as scheduled. Under the bill, the credit would increase to $2,500 per child from 2025 through 2028, before reverting to $2,000, with future adjustments tied to inflation.

Despite the increase, the bill has drawn criticism from policy analysts who argue it fails to aid the nation’s lowest-income families. The child tax credit has long been a subject of political contention, with supporters saying an expanded credit offers vital support to middle-income households, while critics argue it leaves behind millions of the neediest children.

The measure still faces scrutiny in the Senate and could undergo significant changes.

Details of the House GOP Child Tax Credit Proposal

Should the House measure become law, eligible families could claim up to $2,500 per child starting in 2025. Yet the plan does little to help approximately 17 million children currently excluded from the full $2,000 credit, according to Kris Cox, director of federal tax policy at the Center on Budget and Policy Priorities.

Many low-income households do not earn enough to owe federal income tax, which effectively prevents them from accessing the full credit. This has been a major sticking point in legislative debates, with some lawmakers calling for a fully refundable credit to ensure all families benefit, regardless of income. The House bill, however, retains the existing structure, which critics say disproportionately favors higher-earning families.

In addition, the proposal requires both parents to hold valid Social Security numbers when filing jointly in order to claim the benefit for qualifying children. “This bill is taking the child tax credit away from 4.5 million children who are U.S. citizens or lawfully present,” Cox warned.

Understanding the Credit’s Current Structure

As of 2025, the child tax credit remains capped at $2,000 per qualifying child under age 17, provided the child has a valid Social Security number. Up to $1,700 of that amount is refundable, meaning families can receive it even if their tax liability is lower than the credit.

After earning $2,500 in income, families receive 15% of their adjusted gross income (AGI) toward the credit, until the full $2,000 is reached. The benefit phases out for households with AGIs above $400,000 for joint filers and $200,000 for others.

“Almost everyone gets it,” said Elaine Maag, a senior fellow at the Urban-Brookings Tax Policy Center. “But middle-income families currently see the biggest benefit.”

The proposed revisions come at a time when many families are still grappling with the economic aftereffects of the COVID-19 pandemic. While the temporary child tax credit expansion during the pandemic provided substantial relief, the current legislation does not replicate those provisions, raising concerns about its ability to support struggling households over the long term.

Senate Talks Remain Unresolved

A bipartisan House bill passed in February 2024 sought to widen access to the child tax credit and retroactively enhance its refundable portion for the 2023 tax year. That measure, which could have affected families filing in 2024, was blocked in the Senate in August.

Sen. Mike Crapo, R-Idaho, now chair of the Senate Finance Committee, criticized the effort at the time as a “blatant attempt to score political points.” Still, he noted Senate Republicans are open to negotiating a version of the credit that could gain broader GOP support.

While past Republican proposals have included aid for low-income families, the latest bill marks a shift in focus toward middle- and higher-income households, according to Maag.

As lawmakers prepare for upcoming elections and continued debate in the Senate, the fate of the child tax credit hangs in the balance—its outcome poised to affect millions of American families.