WASHINGTON — Sen Josh Hawley, R-Mo., proposed an expansion of the Child Tax Credit on Tuesday. The proposal would increase the credit from $2,000 to $5,000 per child and allow parents to use it to offset their payroll tax liabilities.

What You Need To Know

  • Sen Josh Hawley, R-Mo., proposed an expansion of the Child Tax Credit on Tuesday

  • The proposal would increase the credit from $2,000 to $5,000 per child and allow parents to use it to offset their payroll tax liabilities

  • Hawley said he would like the expanded Child Tax Credit to be included in next year’s reconciliation bill 

  • Originally enacted in 1997 under President Bill Clinton, President Biden expanded the Child Tax Credit as part of the American Rescue Plan in 2021 to help families recover from the effects of the pandemic

“President Trump won with the support of working people with kids,” Hawley said in a statement. “Next year’s tax bill should provide them a big tax cut.”

Hawley said he would like the expanded Child Tax Credit to be included in next year’s reconciliation bill considering federal taxes, spending and debt limits. He said the increased credit “would provide tax relief for millions of American families whose costs skyrocketed and real wages declined under the Biden Administration.”

Originally enacted in 1997 under President Bill Clinton, President Biden expanded the Child Tax Credit as part of the American Rescue Plan in 2021 to help families recover from the effects of the pandemic. The plan increased the standard $2,000 tax credit per dependent child to $3,000 for children over the age of 6 and $3,600 for children under the age of 6. It also raised the age limit for the credit from 16 to 17.

The credit reverted to the initial $2,000 cap at the end of 2021, but while it was in effect, it lifted 2.9 million children out of poverty, according to the U.S. Census Bureau.