Golden introduces bill to replace Child Tax Credit with larger, monthly payments to support families with children

WASHINGTON — Congressman Jared Golden (ME-02) today introduced legislation to create a new social insurance program for families with children, providing monthly per-child payments to help families afford the costs associated with raising kids and empower Americans to start and grow families how and when they want. 

The bill, the Family Income Supplemental

Credit (FISC) Act, would replace the poorly targeted Child Tax Credit (CTC) with a new, more impactful program. Roughly 95 percent of families — all but the very wealthiest — would receive as much or more under FISC than they currently receive under the CTC. The bill is fully paid for with savings from replacing the CTC and revenue from a new tax on the highest-income households.  

“Family is the backbone of society. But stagnant wages make it hard to support kids, and a lack of economic stability prevents some couples from even trying to have the children they want. For instance, it’s common for most or even all of one parent’s income to go toward the cost of child care,” Golden said. “The current approach is poorly targeted and poorly timed. It gives too much to wealthy families and not enough to working class people, and it’s distributed as a lump sum through the tax code once a year, even as families have to meet a budget every month. 

“In the richest country in the world, people should be able to have kids without fear of going broke,” Golden said. “It’s time we fundamentally rethink our approach to supporting families. My legislation will give Americans the tools they need to start or grow their families on their own terms — no one else’s.” 

“Strong and thriving families are the most important bedrock of American prosperity and liberty. Good leaders understand that,” Oren Cass, chief economist for American Compass said. “They also understand that starting and raising a family has become unaffordable for too many people, and that most parenting-age Americans want their elected leaders to do something about it. The FISC Act is a tremendous step forward in Washington, where a long-overdue bipartisan consensus is finally emerging: working families with children need help, and our national policy should deliver it.”  

“Supporting parents in their work of raising children is an essential function of our federal tax code, and Congressman Golden’s new bill is an exciting and innovative entry into the conversation around how best to advance a pro-family policy agenda,” Patrick T. Brown, fellow for the Ethics and Public Policy Center said. 

The FISC would provide a monthly per-child benefit to mothers and parents from the fifth month of pregnancy until the child’s 18th birthday. Monthly payments would be processed by the Social Security Administration. Per-child monthly payments would be largest during pregnancy and taper as the child grows older — $800 for expecting mothers from the fifth month of pregnancy, $400 from birth to age 6, and $250 from age 6 to 18. 

• A single parent of a 2-year-old and a 10-year-old, earning the median Maine income, would receive up to $650 monthly through the FISC — a total benefit more than twice what the CTC delivers.  Click here for additional family scenarios.

Under Golden’s proposal, benefits are capped at the filer's annual income. If a parent loses their job, they remain eligible for benefits for up to a year — preventing the loss of benefits when their household needs help the most, and giving families a cushion while they find a new job. The FISC is also targeted at low- and middle-income families, with a rapid phase out starting at $125,000 in annual income for single filers and $250,000 for couples. The CTC currently does not begin to phase out until $400,000 of income. Married households that file jointly are eligible for a 20 percent bonus. 

For more information, including full legislative text, family scenarios, and a detailed policy summary, click here.