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@PavelMakarchuk
PavelMakarchuk committed Jan 15, 2025
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The Family First Act (FFA) reforms several provisions beginning in 2026, following the Tax Cuts and Jobs Act’s expiration:

![](https://cdn-images-1.medium.com/max/2236/1*LhW-I6WQIaQsnqgVll5-xw.png)
| Program | Current Policy | Current Law 2026 | FFA |
|-------------------------------|-------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------|
| **Child Tax Credit** | $2,000 per child<br><br>Phases out at 5% for income over $200,000 ($400,000 for joint filers) | $1,000 per child<br><br>Phases out at 5% for income over $75,000 ($110,000 for joint filers) | $4,200 per child under 6<br><br>$3,000 per child under 18<br><br>Phases out at 5% for income over $200,000 ($400,000 for joint filers)<br><br>Phases in for earnings up to $20,000<br><br>Capped at 6 children |
| **Pregnant Mother’s Credit** | None | None | $2,800 per newborn child<br><br>Phases in for earnings up to $10,000 |
| **Earned Income Tax Credit** | Phase-in rate:<br><br>7.65% - no children<br>34% - one child<br>40% - two children<br>45% - three or more<br><br>Maximum credit:<br>$649 - no children<br>$4,328 - one child<br>$7,152 - two children<br>$8,046 - three or more<br>Phase-out rate:<br>7.65% - no children<br>15.98% - one child<br>21.06% - two or more<br><br>Phase-out start:<br>Head of Household filers:<br><br>$10,620 - no children<br>$23,350 - one or more children<br>Joint filers:<br>$17,730 - no children<br>$30,470 - one or more | Phase-in rate:<br>7.65% - no children<br>34% - one child<br>40% - two children<br>45% - three or more<br><br>Maximum credit:<br>$662 - no children<br>$4,413 - one child<br>$7,292 - two children<br>$8,204 - three or more<br><br>Phase-out rate:<br>7.65% - no children<br>15.98% - one child<br>21.06% - two or more<br><br>Phase-out start:<br>Head of Household filers:<br>$10,830 - no children<br>$23,810 - one or more children<br>Joint filers:<br>$18,080 - no children<br>$31,060 - one or more | See Table 2 |
| **Child and Dependent Care Tax Credit** | Childcare expenses included for children under 18 | Childcare expenses included for children under 18 | Childcare expenses included only for children under 18 |
| **Dependent Exemptions** | $0 | $5,300 | $0 |
| **Head of Household Status** | Active | Active | Repealed |
| **SALT Deduction** | $10,000 per filer | Uncapped | $10,000 per person |


## Child Tax Credit (CTC)

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Table 2: EITC reform parameters[^1]
[^1]: Italicized parameters are derived from other parameters.

![](https://cdn-images-1.medium.com/max/3008/1*8GKkbgodYVZspHO6a-Fo3A.png)
| Marital Status | Children | Phase-in Rate | Phase-in Earnings Range | Maximum Credit | Phase-out AGI Threshold | Phase-out Rate | AGI Limit |
|----------------|---------------|---------------|--------------------------|----------------|--------------------------|----------------|-----------|
| Single | No children | 7.65% | $9,150 | $700 | $10,000 | 10% | $17,000 |
| Single | With children | 34% | $12,647 | $4,300 | $33,000 | 25% | $50,200 |
| Married | No children | 7.65% | $18,301 | $1,400 | $20,000 | 10% | $34,000 |
| Married | With children | 34% | $14,706 | $5,000 | $43,000 | 25% | $63,000 |


## Repeal head of household filing status

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From 2026 to 2034, we project the FFA would raise $534.7 billion. The annual budgetary surplus will increase each year until 2034. Considering only the federal budgetary impact, the FFA would raise $493.72 over the entire budget window.

![](https://cdn-images-1.medium.com/max/5028/1*0gzNJjwZm96oFVFpGBpzfg.png)
| Year | 2025 | 2026 | 2027 | 2028 | 2029 | 2030 | 2031 | 2032 | 2033 | 2034 | Total |
| ------------- | ------- | ------- | ------- | ------- | ------- | ------- | ------- | ------- | ------- | ------- | ----- |
| Federal Budgetary Impact ($bn) | 0.0 | -20.36 | -27.22 | -34.89 | -42.98 | -52.34 | -62.3 | -72.97 | -83.97 | -97.29 | -493.72 |

![](https://cdn-images-1.medium.com/max/2640/0*mwlUL3jthCnKvis8)

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