WASHINGTON — The Working Families Tax Cuts removes financial barriers that can often discourage parents from choosing life. President Trump and Republicans enacted the most pro-life, pro-family legislation in history to empower parents and ensure every child has the care, opportunity, and resources they need for a fair start and a chance to succeed.
Removes Financial Barriers for Parents to Choose Life
The Working Families Tax Cuts helps parents provide for their children and remove financial pressures that making raising children more difficult:
- Makes Permanent the Doubled Standard Deduction: offers a direct ongoing tax benefit used by 90% of American taxpayers so working families can keep more of their hard-earned money.
- Boosts Child Tax Credit: makes permanent and increases the Child Tax Credit to $2,200 and indexes it to inflation which supports over 40 million working families.
- Improves Housing Affordability: expands the Low-Income Housing Tax Credit to incentivize the construction of affordable homes for American families.
- Enhances the Adoption Tax Credit: increases maximum credit amount to $5,000 and indexes it for inflation to help offset adoption costs for American families.
- Invests in Rural Health Care: creates the Rural Health Transformation Program to award states $50 billion over five years to improve access to affordable health care for more than 60 million Americans living in rural areas.
- Promotes American-made Cars: helps working families purchase American-made cars with no tax on car loan interest up to $10,000 per year on new, U.S.-assembled vehicles.
- Lowers the Cost of Health Care: expands Health Savings Account eligibility so more American families can have better control over their health care spending.
Jumpstarts the American Dream for Newborns
The Working Families Tax Cuts offers parents options to start building children’s financial security from day one:
- Creates Trump Investment Accounts for Newborns: establishes $1,000 savings accounts to set every American newborn on the path to financial security at birth.
Expands Childcare for Working Families
The Working Families Tax Cuts gives parents support to care for their children without sacrificing income or career opportunities:
- Childcare Support: expands the Child & Dependent Care Tax Credit and Flexible Spending Arrangements to help families afford childcare.
- Paid Leave Tax Credit: makes paid leave permanently available to help parents care for children without sacrificing income.
- Employer-Sponsored Childcare Tax Credit: increases maximum credit from $150,000 to $500,000 annually, with an even higher $600,000 cap for eligible small businesses.
- Higher Credit Percentage: increases the percentage of qualified expenses covered under the employer-sponsored childcare credit from 25% to 40%.
- Expands Qualified Expenses: expands qualified expenses associated with childcare to building, expanding, or operating facilities, staff training, and scholarships.
Gives Parents Flexibility and Options for their Children’s Education
The Working Families Tax Cuts provides parents with flexibility to choose the best educational path for their children and confidently plan for their family’s future:
- Supports School Choice: creates the first-ever federal tax credit scholarship program for K-12 students and students with special needs to access alternatives to public schools with direct financial support.
- Enhances 529 Education Savings Accounts: allows flexibility to use 529 plans for K–12 education, including homeschooling, and covers costs of certain materials and activities.
- Expands Pell Grants: expands access for students to pay for short-term vocational and technical training programs that align with in-demand, high-skill, high-wage jobs.
- Simplifies Student Loans: simplifies student loan program and repayment process and adds guardrails so students can’t take on excessive debt they can never repay.
Defunds Big Abortion
The Working Families Tax Cuts ends the practice of Medicaid funds being funneled through a backdoor to abortion providers.
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