House Democratic Caucus Files Expansion for Child Tax Credit and Working Family Rebates

WASHINGTON, DC — House Democratic Leader Hakeem Jeffries joined caucus leadership Wednesday to unveil the party's flagship economic legislative package for the upcoming fall session, centered on permanent expansions to the federal Child Tax Credit and Earned Income Tax Credit.

Statutory Provisions and Family Relief

The Working Families Relief Act of 2026 proposes restoring the enhanced Child Tax Credit benefit levels to $3,600 per year for children under age six and $3,000 for older children, distributed through monthly advance payments to eligible low- and middle-income households. The bill also expands the Earned Income Tax Credit for childless workers and indexes benefit caps to core inflation.

Leader Jeffries emphasized that with families facing persistent cost-of-living pressures in housing, groceries, and childcare, targeted tax credits represent the most direct and effective mechanism to reduce child poverty and stimulate local consumer economies.

Fiscal Architecture and Corporate Offsets

The legislation proposes financing the tax benefit expansions by closing offshore corporate tax loopholes, raising the corporate minimum tax rate on multinational enterprises to 21 percent, and enhancing IRS enforcement funding for high-net-worth audit divisions.

Economic research groups estimate that the enhanced tax credit would benefit more than 40 million children nationwide and reduce childhood poverty rates by nearly 45 percent.

Next Steps in Fall Legislative Debate

Democratic leaders announced plans to force floor debate on the proposal through discharge petition mechanisms when Congress reconvenes in September.