Reverend Joseph E. Kurtz, D.D. Bishop | Archdiocese of Louisville

By Kate Scanlon, OSV News

WASHINGTON — The U.S. Senate on Aug. 1 failed to advance a bill that would have expanded the child tax credit, a provision some Catholic organizations have long sought as a pro-family and anti-poverty effort.

The tax bill — The Tax Relief for American Families and Workers Act — was approved overwhelmingly by the House in January. However, it did not clear a procedural vote in the Senate, falling short in a 48-44 vote and failing to meet the upper chamber’s 60-vote filibuster threshold to proceed to debate.

The legislation aimed to make more families eligible for the child tax credit. Reports from the U.S. Census Bureau, academic institutions, and other nonprofit research organizations found a significant decrease in child poverty due to a COVID-19 pandemic-era expansion of the credit that has since expired.

In a press conference following the vote, Senate Majority Leader Chuck Schumer, D-N.Y., described it as “disappointing and stunning” that Senate Republicans rejected the bill. Schumer stated that the bill would have helped families and businesses, eased the housing crisis, and provided relief for those impacted by natural disasters.

“Rare is the moment that Senate Republicans are even to the right of the House Republicans,” Schumer said.

Senate Minority Leader Mitch McConnell, R-Ky., commented on the Senate floor that the bill needed further revision. He noted that prior to the chamber’s August recess, Schumer “decided to squeeze in one more vote that isn’t ready for prime time.”

“Colleagues on this side of the aisle have serious unresolved concerns,” McConnell said about the bill, arguing it would “weaken work requirements.”

Patrick Brown, a fellow at the Ethics and Public Policy Center’s Life and Family Initiative in Washington, told OSV News on Aug. 1: “Today’s vote isn’t surprising, but it is disappointing.”

“If Congress is serious about being pro-family,” Brown added, “it should pass bills aimed at helping reduce the cost of having and raising kids, which this bill would have done.” He further explained that "the politics of an election year meant that a fairly straightforward expansion of the child tax credit to working-class families with multiple kids," along with business credits aimed at spurring innovation could not succeed.

Brown emphasized that it will be crucial for Congress to focus on expanding support for low- and middle-income families when addressing next year’s tax bill.

In January, the House approved the legislation with a 357-70 vote. The proposed child tax credit would have provided a tax break for qualifying households with children that could be claimed even by families who do not normally file returns. Households could eventually receive the full refundable value of $2,000 per child so long as they earned at least $2,500 annually.

Currently, while there is a $2,000 per child credit available under existing law; only up to $1,600 is refundable.

According to estimates from nonpartisan Tax Policy Center analyses, families would see an average of $680 in tax cuts if this legislation passed—with most benefits going towards families earning less than $40k annually.

The proposed changes had particular significance within U.S Catholic households; Pew Research reports indicate approximately 55% earn below $50k yearly including roughly one-third earning less than $30k annually

However—the current version isn't permanent either—without congressional action extending them beyond their expiration date after December2025—tax credits will revert back down towards previous levels established during2017 ($1000perchild)—potentially impacting all currently benefiting recipients