On May 13, the U.S. House Ways and Means Committee approved tax proposals included in the congressional reconciliation bill. Among these proposals is a change that would deny the Child Tax Credit to children who are U.S. citizens or legal permanent residents if either parent claiming them on their tax return does not have a Social Security Number, despite the child being eligible under current law.
New Jersey Policy Perspective (NJPP) responded with a statement from Peter Chen, Senior Policy Analyst at NJPP: “The House plan to cut off the Child Tax Credit based on a parent’s immigration status is a direct attack on New Jersey families and children. More than 180,000 New Jersey children — 1 in 11 — would lose this critical support, even if they are U.S.-born citizens and their parents are lawful residents."
Chen added, “This plan doesn’t just punish kids, it undermines one of the country’s most effective tools to reduce child poverty and make life more affordable for families. Denying help to children to pay for tax breaks for the ultra-wealthy is cruel, unjust, and economically short-sighted. Congress must reject this proposal.”
For further insights into how Congress could enhance the current reconciliation bill to benefit more working-class families, refer to the Tax Policy Center's analysis.