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What Is The New $5,500 Child Tax Credit Proposal

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Democrats have introduced a proposal to significantly expand the Earned Income Tax Credit, offering up to $5,500 per child under age four, according to a bill shared with CNBC.

Rep. Kristen McDonald Rivet’s “Working Parents Tax Relief Act” would boost support for low- and middle-income families, raising the income eligibility cap to nearly $100,000 and introducing monthly payments. The measure aims to ease rising costs tied to housing, childcare and groceries.

According to supporters, the plan builds on past tax credit expansions, including the 2021 Child Tax Credit increase that temporarily reduced child poverty. Advocacy groups have backed the proposal, calling it targeted relief for working families.

However, the bill faces steep hurdles in a Republican-controlled House and is unlikely to pass. The report said it is part of broader Democratic messaging ahead of upcoming elections, where affordability remains a key issue.

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