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Home U.S.

Senate Republicans Block Child Tax Credit Expansion Bill

Lisa Miller by Lisa Miller
August 2, 2024
in U.S.
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On Thursday, August 1st, Senate Republicans blocked a bipartisan bill aimed at expanding the child tax credit and providing tax breaks for businesses. The vote ended at 48-44, failing to meet the 60 votes needed to advance the legislation. This bill had earlier passed the Republican-led House but faced resistance in the United States Senate.

The proposed bill aimed to temporarily expand the child tax credit, particularly benefiting low-income families with multiple children, and restore certain business tax benefits. According to the Center on Budget and Policy Priorities, the bill would have lifted at least half a million children out of poverty and improved the financial situation of approximately 5 million more children.

Senate Democrats, led by Majority Leader Chuck Schumer, highlighted the bill as a critical measure to support American families. Schumer criticized the opposition, stating, “Right now, the only ones standing in the way are Senate Republicans.” He emphasized that the bill’s failure represented a significant loss for American families.

The opposition was spearheaded by Senator Mike Crapo of Idaho, who argued that the bill was inadequately funded and lacked sufficient conditions on the child tax credit. Crapo labeled the bill a “senseless show vote” and criticized its provisions as subsidies rather than tax relief.

The bill would have provided a larger child tax credit in the first year to low-income families, adjusted for inflation starting in 2024, and included several business tax benefits. These benefits included allowing businesses to immediately deduct the cost of U.S.-based research and experimental investments and 100% of investments in machinery and equipment until 2025. Additionally, the bill sought to enhance the low-income housing tax credit and provide disaster relief.

Republican Senators Josh Hawley, Rick Scott, and Markwayne Mullin supported the bill, while most Republicans opposed it. Hawley emphasized the importance of supporting families, saying, “As Republicans, we should be in favor of helping people who want to have families.” 

The bill’s failure also comes amid controversy over comments by GOP vice presidential candidate Senator JD Vance, who faced criticism for remarks about “childless cat ladies.” Vance did not attend the vote due to a scheduled visit to the U.S.-Mexico border. Democrats used the vote to counter Vance’s claims, with Schumer asserting that Democrats strongly support the child tax credit.

As the Senate heads into recess until September, the blocked bill marks another chapter in the ongoing partisan struggle over family and economic policies.

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