Hawley Proposes Major Increase in the Child Tax Credit

Sen. Josh Hawley is calling for the Child Tax Credit to more than double in value, rising from the current maximum of $2,000 per child to $5,000 per child annually. Parents would be able to claim the credit in the year in which a pregnancy begins, even if the birth occurs in the following calendar year.

The proposal from the Missouri Republican comes as lawmakers stake their claims ahead of what is expected to be a lengthy and complicated battle over taxes in 2025, driven by the expiration at the end of the year of many of the individual provisions in the 2017 Tax Cuts and Jobs Act. Hawley appears to be taking a populist stance that embraces government support for families, including those who are not wealthy. The tax credit could be used to reclaim payroll taxes, not just income taxes, making it available to more low-income households.

"President Trump won with the support of working people with kids," Hawley wrote on social media. "Next year’s tax bill should provide them a big tax cut."

The proposal could cost $2 trillion to $3 trillion over 10 years, budget experts say, potentially putting Hawley into conflict with Republicans who are more focused on cutting spending and reducing the role of government in society. But Hawley is pushing back against cost concerns, telling Axios that "these are the folks who delivered us a majority," adding that the plan would be "fantastic for the economy."

The proposal borrows a page from the Democratic playbook, reflecting a growing interest among some Republicans in appealing to more middle- and working-class voters. Democrats temporarily raised the value of the Child Tax Credit to as much as $3,600 in 2021 during the pandemic, which helped drive the child poverty rate to a record low. But Republicans defeated an effort to extend that increase, resulting in a doubling of the child poverty rate the following year.

Vice President-elect JD Vance also proposed boosting the Child Tax Credit to $5,000 during the campaign.