Members push expanded child tax credit, paid-leave incentives and adoption support

Lawmakers from both sides of the aisle framed child- and family-focused tax measures as central to economic security for working households. Representative Katherine of Massachusetts and others highlighted the effects of the expanded child tax credit used in recent years, calling it a proven anti-poverty tool that improved child outcomes when more families received monthly payments.

Representative Ryan McKenzie and others proposed targeted tax changes: doubling employer tax credits for paid family and medical leave and creating or enlarging child care tax credits to reduce the cost of child care. Representative McKenzie noted that only 27% of civilian workers have access to paid family leave, and he urged doubling the employer credit to expand access.

Adoption and fertility: Multiple members advocated expanding and making the adoption tax credit fully refundable to reduce the upfront costs of adoption. Representative Stauber explicitly called for making the adoption credit refundable to help families who cannot otherwise afford adoption costs. Representative Tom Barrett urged extending the child tax credit to expectant mothers, describing the policy as a way to “provide critical relief at a time when families need it most.”

Why it matters: Members framed these proposals as targeted supports that boost labor force participation, reduce child poverty and help families make long‑term financial plans. While they differed on financing and exact mechanics, witnesses urged the committee to include family-focused measures in reconciliation work.

Next steps: Members asked Ways and Means staff to consider permanent or extended credits and to analyze budgetary offsets. No bills were voted on during the hearing; members submitted legislative proposals and asked for committee consideration.