H.R. 6235: End Child Poverty Act (119th Congress) Bill Summary

This bill, titled the End Child Poverty Act, proposes the establishment of a universal child assistance program aimed at reducing child poverty in the United States. Here is a summary of its key components:

Universal Child Assistance Program

The bill creates the Office of Universal Child Assistance within the Social Security Administration, which will be led by a Deputy Commissioner. This office will be responsible for implementing and managing the program.

Child Assistance Payments

Eligible Recipients: The program provides monthly financial assistance to qualifying children under the age of 19 who are either U.S. citizens or qualified aliens residing in the country.
Payment Calculation: The monthly payment amount is calculated based on the difference between the annual poverty guideline for a two-person household and a single individual. This amount will be adjusted annually in accordance with published poverty guidelines.
Application Process: Families must apply for child assistance payments, providing necessary information about the child. The bill outlines how applications will be processed and approved.

Office Responsibilities

The Deputy Commissioner will have various responsibilities, including:

Hiring personnel for the office.
Making timely payments to eligible children.
Ensuring program efficiency through contracts with other agencies.
Preventing fraud and abuse related to child assistance payments.
Providing information to the public about the program and tailoring outreach efforts.
Issuing an annual report to Congress on the program's effectiveness, including data on participants and payments.

Data Sharing and Regulations

The bill proposes amendments to allow the Internal Revenue Service (IRS) to share relevant taxpayer information with the Social Security Administration to facilitate the identification and processing of eligible children for assistance.

Tax Credit Changes

Termination of Existing Credits: The bill calls for the termination of the current child tax credit and earned income tax credit, effective from December 31, 2025. Thus, families would instead rely on the new child assistance payments.
Introduction of New Credits: The bill introduces new refundable tax credits for adult dependents and for families. Adults over age 19 will be eligible for a credit based on their relationship to qualifying dependents.

Impact on Income Calculations

Child assistance payments will not be counted as income when determining eligibility for federal or state assistance programs, ensuring recipients are not penalized for receiving this support.

Administrative Procedures

The bill outlines specific procedures for the administration of the program, including how applications are submitted, the required information for approval, and how to handle cases where children are automatically considered for assistance based on existing data.