Rep. Kristen McDonald Rivet, D-Mich., will introduce a new bill to expand the Earned Income Tax Credit to provide up to a $5,500 credit to parents per child under age four.
The bill, shared exclusively with CNBC, is dubbed the “Working Parents Tax Relief Act” and would provide qualifying single or joint filers claiming the EITC an additional up to $5,500 credit for up to three children under the age of four. The bill would also increase the maximum qualifying income to claim the EITC to nearly $100,000 annually and require the Treasury Department to create a monthly payment system for the enhancement.
It comes as Democrats campaign across the country on a message of affordability, arguing Republicans and President Donald Trump have failed to lower costs for Americans. Polls show Democrats have the upper hand in the 2026 midterm elections and could see Trump lose his majorities in the House of Representatives and Senate.
“Bringing home a baby is the most magical moment of a parent’s life, but it is also the most expensive. Parents with toddlers today are working harder than ever, but still find it impossible to keep up with the out-of-control costs of housing, child care, groceries, and so much more,” McDonald Rivet said. “We need to cut their taxes now. Our bill puts thousands of hard-earned dollars back in their pockets, helping parents keep up with their bills while raising their families.”
