By Congresswoman Stephanie Bice
Last year, President Trump signed the Working Families Tax Cuts into law, delivering tax relief for American workers, families, seniors, and small businesses. Among the many provisions included in this legislation were forward-looking, family-focused policies designed to support parents today while helping the next generation build a strong financial future.
One of the most important provisions for families was the permanent expansion of the Child Tax Credit. Before the Working Families Tax Cuts became law, the credit was scheduled to fall from $2,000 to $1,000 per qualifying child after 2025. Instead, the legislation permanently increased the credit to $2,200 per qualifying child and includes an annual adjustment for inflation beginning after 2025.
Raising a family comes with significant expenses, and those costs only grow as families get larger. Around 50 million Americans claim the Child Tax Credit each year. Our tax code should recognize the financial responsibilities parents take on when raising children, not make it harder for them to keep more of their hard-earned money. Thankfully, House Republicans recognize this fact and are working to expand policies that promote families across the country.
The Working Families Tax Cuts also looked beyond the immediate needs of parents by creating Trump Accounts, a new savings tool designed to help children begin building a financial foundation early in life.
Trump Accounts allow parents to establish tax advantaged investment accounts for their children. American children born between January 1, 2025, and December 31, 2028, will receive a $1,000 contribution to their own account. Families are not obligated to contribute additional funds; however, they have the option to add up to $5,000 per year.
The funds in these accounts are invested in low-cost index funds to maximize long-term growth while keeping risks low. Whether families add to the account or not, the early investment provides a meaningful advantage to your child’s future. According to data compiled by the Council of Economic Advisers (utilizing historical S&P 500 stock averages), these accounts will grow drastically if left unused. Those historical trends show that even if an individual does not contribute to their account, it will grow to $6,000 by age 18, $15,000 by age 27, and $243,000 by age 55.
Since the program launched, more than 5.5 million Trump Accounts have been opened. The Trump Accounts app is also live, making it easy for families to manage their accounts and track investments right from their phones. The program has also received support from many private companies, including Dell, Chipotle, Steak ’n Shake and Oklahoma’s own Continental Resources, which have all announced contributions to Trump Accounts for employees’ children.
The Working Families Tax Cuts included pro-family policies that give parents greater financial flexibility while helping children build a stronger foundation for the future. From permanently expanding the Child Tax Credit to helping children begin saving and investing at an early age, these provisions give families more tools to plan ahead and help their children start life on stronger financial footing.
