Last week, a pivotal piece of legislation known as Donald Trump’s “One Big Beautiful Bill” (OBBB) made its way through the House of Representatives, ultimately passing by the narrowest of margins—just one vote. This sweeping 1,000-page bill encompasses a myriad of domestic policies that touch nearly every aspect of daily life, from taxes to benefits like SNAP and Medicaid.
Among the highlights—dubbed the “50 Wins” by the White House—was an increase in the child tax credit (CTC), set to rise from $2,000 to $2,500 per eligible child under 17. However, this change comes with a significant caveat: the OBBB intends to disqualify millions of American children and permanent residents from receiving the credit. Estimates vary widely, suggesting that between 2 million and 4.5 million children could lose out on this financial support.
The $500 increase is not a permanent boost. It is set to extend through 2028, but with a stipulation: both parents in a household must have a Social Security Number (SSN) for the family to qualify for the credit. This requirement raises questions about who can truly benefit. While U.S. citizens, green card holders, and H1B visa holders can obtain an SSN, many undocumented immigrants, asylum seekers, and individuals on specific work visas must use an Individual Taxpayer Identification Number (ITIN) to pay taxes, which disqualifies them from claiming the CTC.
For example, consider a family where one parent is a U.S. citizen with an SSN and the other is an asylum seeker. Even if they have a child who is a U.S. citizen, this family would be ineligible for the CTC due to the new provisions—even if they had successfully claimed it in previous years. This shift is particularly worrisome given that child tax credits have historically received bipartisan support for their role in alleviating poverty and boosting children’s well-being.
The Tax Policy Center has pointed out that while this measure may save around $40 billion over the next decade, the broader implications on families and communities could be detrimental. The long-term effects on economic strength are also a significant concern, especially as these families navigate the challenges of raising children under increasingly tight fiscal conditions.
As the OBBB advances to the Senate, it’s already facing hurdles. A number of representatives who initially supported the bill have retracted their backing. Changes are likely ahead, but it remains a strong possibility that the bill will be passed in some form.
For families impacted by these legislative changes, the emotional weight of potential loss is palpable. Being suddenly cut off from crucial financial support can leave many feeling vulnerable and stressed. Understanding the implications of such policies is essential in navigating this complex landscape, and it’s clear that ongoing conversations about the needs of families must continue. Ensuring that every child—regardless of their parents’ immigration status—feels embraced and supported is a goal worth striving for, and one that overlaps with the fundamental interest of enhancing the future well-being of our communities.
Image Source: Unsplash
