HR 413, the CHILD Act of 2025, increases the annual tax benefit limit for dependent care assistance programs from $5,000 to $10,000 (with $2,500 to $5,000 for single filers) for taxpayers using employer-sponsored dependent care accounts. It adds automatic annual cost-of-living adjustments to these limits based on inflation, rounding increases to the nearest $50. The bill also removes an outdated provision (previously referenced as subparagraph (D)) from the tax code. These changes directly affect working parents and caregivers who use dependent care benefits, applying to tax years beginning after December 31, 2024.
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Children
HR 1901, the CHIPP Act, makes Children's Health Insurance Program (CHIP) funding permanent for all future fiscal years, removing previous expiration dates that required annual congressional renewal. This directly affects low-income children and families who rely on CHIP coverage and the states that administer these programs. The key mechanism is amending federal law to require "such sums as are necessary" for CHIP funding starting in fiscal year 2029 and beyond. Other provisions adjust funding for related programs like pediatric quality measures and outreach, but the primary change is CHIP’s permanent funding structure.
HR 2359 sets new deadlines for states to use federal funds supporting child welfare programs under the Social Security Act. States must obligate (commit) funds by the end of the next fiscal year and fully spend them by the end of the second following year, unless they reserve up to 15% of the funds for future use. This reserve is capped at 50% of the previous year's total funds, and states must notify the federal government in advance if they plan to hold funds. The law directly affects states administering child welfare programs funded through Section 403(a)(1) and takes effect October 1, 2026.
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Children
The American Family Act (HR 2763) establishes a new refundable child tax credit that provides monthly payments to eligible families with children. It would pay $300 per month for each child under age 6 and $360 per month (120% of $300) for each child age 6 or older, with income limits of $150,000 for joint filers and $112,500 for other filers. The bill creates a "period of presumptive eligibility" to determine eligibility for monthly payments, allowing families to receive advance payments based on information from previous tax returns. This would directly affect millions of families with children who meet the income requirements, providing more consistent financial support throughout the year rather than an annual tax credit.
The Building Child Care for a Better Future Act (HR 2595) increases federal child care funding to $20 billion for fiscal year 2026 with annual inflation-based increases, plus an additional $5 billion annually for targeted improvements in child care access and quality. It allocates specific portions of funds to Indian tribes (5%) and territories (4%), requiring states and tribes to identify areas with particular child care needs and develop plans to improve workforce, supply, quality, and access through activities like provider training, facility upgrades, and higher wages. The bill mandates regular reporting and evaluations to track how funds improve child care services for low-income families, children with disabilities, dual language learners, and those in rural or high-poverty areas. This legislation directly affects child care providers, low-income families seeking care, and tribal organizations by providing concrete funding mechanisms to address specific child care shortages.
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Children
The MAGA Act establishes tax-advantaged "MAGA accounts" for individuals under age 18, with $5,000 annual contribution limits. These accounts require specific setup (including social security numbers and beneficiary age restrictions), limit investments to certain index-tracking funds, and restrict distributions until age 18 with additional rules for those under 25. The bill includes a pilot program that would automatically establish MAGA accounts for children born between 2025-2028 with $1,000 one-time government contributions. Distributions for qualified education, small business, or first-time homebuyer expenses would be treated as capital gains, while other distributions would be taxed with an additional 10% penalty for those under age 30.
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Children
The Foster Youth Mentoring Act of 2025 authorizes federal grants to fund structured mentoring programs for children in foster care (under 18) and youth with foster care experience (up to age 26). It requires grantees to provide trained mentors (adult or peer), ensure cultural competence, conduct background checks, and match mentors with mentees for at least one year to support academic, social, and emotional needs. Programs must prioritize input from youth, recruit diverse mentors reflecting foster youth demographics, and coordinate with child welfare and education systems. The bill allocates $50 million annually for fiscal years 2026-2027, mandating annual reports on program reach, mentor demographics, and outcomes like school attendance and college enrollment. This directly affects over 390,000 foster youth annually by expanding access to evidence-based mentoring.
The Baby Bonus Act (HR 6234) creates a new $2,000 payment for eligible parents of children born on or after January 1, 2026, with annual inflation adjustments. It establishes the Office of Baby Assistance within the Social Security Administration to manage applications, verify eligibility (requiring U.S. residency and citizenship/qualified alien status), and prevent fraud. Payments are tax-exempt and not counted toward eligibility for other federal or state benefits, with applications due within one year of birth or fetal death after 20 weeks gestation. The bill includes specific provisions for surrogacy, adoption, and custody arrangements to determine payment recipients.
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Children
The End Child Poverty Act (HR 6235) establishes a universal child assistance program providing monthly payments to children under 19 who are U.S. citizens, nationals, or qualified aliens residing in the U.S. Payments equal 1/12 of the annual poverty guideline difference between a two-person household and a single individual, adjusted annually using federal poverty guidelines. The Social Security Administration’s new Office of Universal Child Assistance will automatically identify eligible children via IRS data sharing (with an opt-out option) and issue payments starting in 2026, including reconciliation payments when updated poverty guidelines are published. The bill also terminates the Child Tax Credit and Earned Income Tax Credit after 2025, replacing them with new refundable tax credits for adult dependents and families.
The Child Care Workforce Act (S 846) establishes a federal pilot program to boost pay for eligible child care workers in states, Indian Tribes, and Tribal organizations. It provides competitive grants to fund wage supplements targeting low-wage workers, aiming to attract and retain staff, improve well-being, and increase access to quality, affordable child care - particularly in underserved areas and for infants/toddlers or children with disabilities. Grantees must prioritize funding for high-need regions, pay supplements quarterly, and provide workers with tax/public benefit information, with up to 10% of funds allowed for administrative costs. The program will be evaluated after two years to measure impacts on worker retention, service quality, and affordability.
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Children
