As President Donald Trump embraces more policy focused on affordability, some lawmakers have pushed to expand tax credits for families.
The Republican Study Committee this week released a framework for a second budget bill, known as “Reconciliation 2.0,” which outlines priorities like homeownership, health care, energy prices and financial support for families. Another reconciliation bill has support from House Speaker Mike Johnson and House Budget Committee Chairman Jodey Arrington, R-Texas., among others.
One proposal from the framework would expand access to the child and dependent care tax credit, or CDCTC, which partially offsets up to $6,000 of care expenses for two or more “qualifying individuals” — typically children under age 13 — when parents who file taxes jointly both work.
The CDCTC is often confused with the child tax credit, or CTC, of up to $2,200 per child under age 17 for the 2025 tax year. One key difference is the CTC doesn’t require both parents who file taxes jointly to earn income.
The proposal comes during a mid-term election year as Republicans fight to defend a razor-thin majority in the House. Both parties are pushing messaging about affordability as many Americans struggle with the cost of housing, food, electricity and health care.
