Between the chaos of the COVID pandemic and the out-of-control inflation caused by Biden-era policies, Americans have taken a hit to their pocketbooks over the past several years. In a recent study, nearly 59% said that they do not have enough savings to cover an unexpected $1000 expense. And while President Trump’s financial strategy may win out in the end, it could be some time before the economy stabilizes. Fortunately, there are several measures that Congress can pass that would provide relief to families and encourage them to grow and flourish, regardless of any current or future economic headwinds.
The one with the most widespread positive impact would be an increase to the Child Tax Credit (CTC). First implemented in 1997 thanks, in part, to the work of Concerned Women for America (CWA) and other like-minded family policy groups, the CTC allows every family with children to claim a tax credit when they file their taxes. The credit both alleviates some of the financial burden that comes with having a family and incentivizes Americans to have kids within the bounds of a loving, family unit. It’s a policy that all pro-life and pro-family legislators should champion.
In 2017, the Tax Cuts and Jobs Act (TCJA) doubled the CTC to $2,000 per child, a significant boon at the time. However, the TCJA, and all the tax cuts and provisions it implemented, is set to expire at the end of this year if Congress does not renew it. But simply renewing the CTC as is not enough. The rising costs of everyday goods means that in 2025 families need a $2,500 credit to simply match the purchasing power of the original $2,000.
That’s why CWA is partnering with other pro-family organizations to call on Congress to not only renew the CTC but to increase it and make it permanent in the upcoming reconciliation bill. We’re confident that the current administration is in agreement with us on this. On the campaign trail, now-Vice President J.D. Vance proposed a $5,000 credit to help families stay afloat in an environment where every necessary purchase costs far more than it did five years ago. The question is whether or not Congress will get it done.
While the CTC is a benefit that goes directly into the wallets of families, there are other measures aimed at making the nation’s insurance structure more financially supportive of growing families.
One of those is Sen. Cindy Hyde-Smith’s (R-Mississippi) Supporting Healthy Moms and Babies Act. The average out-of-pocket costs for childbirth for those on employer-sponsored health insurance is $3,000. Many parents will face a bill much larger than that, at a time when they are recovering from the physical and emotional toll of welcoming a new child into the world. This is a significant financial hurdle for young families, especially moms who are unsure if they can afford choosing life for their babies.
Sen. Hyde-Smith’s bill would address this by requiring commercial health insurance plans to define particular prenatal, childbirth, and postpartum healthcare services as essential health benefits and eliminate cost-sharing. Parents would not see any change to their existing commercial insurance provider but would not be saddled with the significant costs that come with having a child.
Not only do the exorbitant costs for childbirth place a financial burden on families, they often force parents back into the workplace, even if they would rather stay at home with their newborn. Under current federal law, employers are allowed to take back health insurance premiums, which can cost as much as $25,000, if an employee chooses to leave the workforce after having a child. That creates a negative incentive for parents to go back to work rather than become stay-at-home parents – many simply cannot afford those premiums.
To address this, Sen. Mike Lee (R-Utah) and Rep. Riley Moore (R-West Virginia) have introduced the Fairness for Stay-at-Home Parents Act. The legislation would “prohibit an employer from recovering any health care premium paid by the employer for an employee if the employee fails to return to work due to the birth of a child” by amending the Family and Medical Leave Act. With this bill, new parents would no longer be punished simply for choosing to do what they think is best for their families.
A healthy nation requires flourishing families. Yet fewer Americans are forming families each year and scores of women feel too financially unstable to have children. And even when they do have children, too many feel like they do not have the option to stay home and care for their babies themselves. Each of these measures is a commonsense reform that would encourage families to grow and help them bear the costs. Making America great starts with promoting strong and healthy families again.