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Jaime Herrera Beutler Supports Solution to Provide Financial Relief for New Parents

Bipartisan bill provides option for new parents to advance up to $5,000 Child Tax Credit following birth, adoption to help fund paid parental leave, infant care

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Washington, D.C., December 4, 2019 | comments
Congresswoman Jaime Herrera Beutler joined her colleagues today in introducing a bipartisan, bicameral bill to help provide financial relief for new parents. The legislation, Advancing Support for Working Families Act, gives new parents the option of receiving up to $5,000 following the birth or adoption of a child through the Child Tax Credit (CTC). In exchange for this benefit, families would take a $500 reduction from their future annual child tax credits over the following 10 years.
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Congresswoman Jaime Herrera Beutler joined her colleagues today in introducing a bipartisan, bicameral bill to help provide financial relief for new parents. The legislation, Advancing Support for Working Families Act, gives new parents the option of receiving up to $5,000 following the birth or adoption of a child through the Child Tax Credit (CTC). In exchange for this benefit, families would take a $500 reduction from their future annual child tax credits over the following 10 years.

Since enactment of the Tax Cuts and Jobs Act, parents can claim an annual CTC of up to $2,000 for each child under age 17. If parents take the new benefit made available with passage of this bill, they would then receive an adjusted CTC of up to $1,500 annually over the following 10 years. This new option allows families to change the timing of when they receive the CTC, allowing them to get a financial boost in the first year.

U.S. Representatives Elise Stefanik (R-NY) and Colin Allred (D-TX) and U.S. Senators Bill Cassidy (R-LA) and Kyrsten Sinema (D-AZ) are leading this bill. This legislation is budget-neutral, using existing taxpayer dollars.

“As a parent of an infant, I know the added cost families face in the first year following birth. Being able to receive financial support after the birth or adoption of a child can make all the difference in the world to a new parent, especially working parents who may not get paid leave,” Herrera Beutler said. “I’m pleased to join my colleagues in introducing a bipartisan solution that allows working families in Southwest Washington the flexibility to use the Child Tax Credit when they need it most.” 

“The joy of starting a family should not be dampened by the fear of being unable to make ends meet if a parent takes time off work,” Stefanik said. “This bipartisan effort to support hardworking families in the first year after birth or adoption will prove critical to ensuring families can thrive without the burden of potential bankruptcy or debt. I’m proud to introduce the Advancing Support for Working Families Act with my colleagues, which will bring tangible benefits and enhance paid leave options for the hardworking families in the North Country.”

For low-income families that do not qualify for the full, refundable portion of the CTC, $500 annual installments would be burdensome. Under this bill, these families would be able to similarly advance their CTC benefit to receive the equivalent of 12 weeks’ wage replacement. They then would receive their adjusted CTC over the next 15 years.

 

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