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By Sophie Clark
Live News Reporter
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The Child Tax Credit may decrease under Donald Trump's administration if the newly inaugurated president does not extend the deadline of his 2017 Tax Cuts and Jobs Act (TJCA) legislation set to expire in 2026.
The Child Tax Credit was also expanded to include 17-year-olds under former President Joe Biden, and it is unclear whether the Trump administration will maintain this change.
Why It Matters
The Child Tax Credit is the tax benefit given to people with children under 17. It is currently $2,000 for each qualifying child but could change if the Trump administration does not extend the TJCA.
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The current cap for benefits is $200,000 for single filers and $400,000 for joint filers. If the TJCA expires, the benefits will return to only serving single filers earning up to $75,000 or joint filers earning up to $110,000.
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Is Trump Changing Child Support Laws?
In his first term, Trump approved paid parental leave for federal employees. While this policy was popular, it only applied to federal workers, leaving many working parents without paid parental leave.
Trump's wider first-term plan for paid maternity leave, which would have been paid for via changes in the tax code and did not pass through the government, was only for new mothers, not new fathers.
It was critiqued by the childcare advocacy group Child Care Aware of America (CCAA) for not considering that in 2017, 40 percent of family breadwinners were mothers.
Additionally, this would not have served families with two dads or single fathers.
This time, Trump has not mentioned any childcare proposals for his second term in office. Vice President JD Vance told Charlie Kirk in September that families could rely on grandparents for help with childcare.
Vance has also suggested that people who do not have children should pay higher taxes than people with children.
Anne Hedgepeth, senior vice president, Policy & Research at CCAA, spoke with Newsweek about this administration's child care plan, saying that when the president and vice president were asked to come up with a plan for policy changes and ways to bring down the price of childcare during the election, they did not have one.
However, she knows of areas that are priorities for the new administration, such as the tax code, where childcare can fit in.
Hedgepeth also said that the amount of discussion she saw over the election about the cost and inaccessibility of childcare show what a big issue it is to parents and people who want to become parents in the future. And, she stressed how good childcare is not only an immediate benefit to families today, but having children who are able to access places that enable healthy safe development will benefit the U.S. as a whole in the long term.
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Do You Pay Taxes On Child Support?
People who qualify for the Child Tax Credit still pay other taxes, but the Child Tax Credit is a tax break given to people who qualify for it. That is, people who earn under $200,000 and have children under 17.
Parents who are separated and are obligated to pay child support still pay taxes as well.
How Much Is The Child Tax Benefit In The USA?
Under Trump's tax plan, the Child Tax Credit is $2,000 for each qualifying child. It rose during the pandemic to $3,600 but is set to fall back to $1,000 unless the TJCA is renewed.
The Senate had the opportunity to expand the Child Tax Credit without it being tied to the TJCA in August 2024. However, that bill fell short of the 60-vote majority it needed to pass.
What People Are Saying
House Ways and Means Committee Chairman Jason Smith, in a statement: "Raising a family can be challenging enough without Washington pulling the rug out from under parents. But that's exactly what will happen if the 2017 Trump tax cuts are allowed to expire next year."
President Donald Trump: "It's a very important issue. But I think when you talk about the kind of numbers that I'm talking about...childcare is childcare—you know, you have to have it in this country, you have to have it."
Vice President JD Vance, in an interview with Charlie Kirk in 2021: "If you're making $100,000, $400,000 a year and you've got three kids, you should pay a different lower tax rate than if you're making the same amount of money, and you don't have any kids."
Anne Hedgepeth, senior vice president, Policy & Research at CCAA: "It makes a big difference for children to be in safe places that are fostering their healthy development and that pays off in the long run...we also know that communities that are looking to be a great place for families to live and for employers to operate, benefit from having high quality childcare and early learning. So, there a lot of reasons to make the investment, and a lot of it pays off in dividends over the immediate and the long term."
What Happens Next
The TJCA is set to sunset in 2026 and must be re-passed as a new tax package by Congress before then to remain the law of the land.
The House and Senate are both Republican-controlled until at least the midterm elections in 2026, so it is likely that a favorable Trump policy will be passed through both chambers.
Update 1/24/25, 12:10 p.m. ET: This story was updated to include comment from Anne Hedgepeth.
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