HR6235-119

What This Bill Does

The End Child Poverty Act creates an Office of Universal Child Assistance inside the Social Security Administration to make monthly payments to qualifying children who live in the United States, are U.S. citizens, nationals, or qualified aliens, and are under age 19. The monthly payment equals one-twelfth of the difference between the annual poverty guideline for a two-person household and the guideline for a single individual, with SSA responsible for eligibility, records, fraud prevention, outreach, and annual reporting. The bill terminates the child tax credit and earned income tax credit for taxable years after 2025, while preserving reference computations for other laws. It adds a refundable $700 indexed credit for adult dependents over age 18 and a refundable adult-and-family credit of $700 for single filers or $1,400 for joint returns, phased down above $20,000 of adjusted gross income for other returns and $40,000 for joint returns.

Who Benefits and How

Children under 19 in eligible households benefit from a direct monthly child assistance payment administered outside the annual tax filing cycle. Taxpayers supporting adult dependents over age 18 benefit from a new refundable $700 credit. Adults ages 19 to 64 who meet income and identification requirements can benefit from the new $700 or $1,400 adult-and-family credit.

Who Bears the Burden and How

Families that currently rely on the child tax credit or earned income tax credit may lose those tax credits after 2025 even if they receive other payments or credits. The Social Security Administration and IRS must administer new offices, payments, refundable credits, reference tables, identification checks, outreach, fraud prevention, and annual reporting. Federal taxpayers bear the fiscal cost of new monthly payments and refundable credits.

Key Provisions

• Creates a Social Security Administration Office of Universal Child Assistance to pay monthly assistance to qualifying children under age 19.
• Requires the child payment amount to track the difference between two-person and one-person poverty guidelines.
• Repeals the child tax credit and earned income tax credit for taxable years beginning after 2025 while preserving reference computations.
• Adds a refundable $700 indexed adult-dependent credit for qualifying dependents over age 18.
• Adds a refundable adult-and-family credit of $700 for single filers and $1,400 for joint returns, phased down above $20,000 or $40,000 of adjusted gross income.