Larson, Thompson, and Neal’s American Affordability Act also restores the expanded Child Tax Credit for working parents, providing monthly payments of $300 for each child over the age of six and $360 for each child under the age of six, creates a new $5,000 refundable tax credit to cover startup costs needed to open family childcare centers, creates a new tax credit to support working family caregivers, and increases the maximum dependent care Flexible Spending Account (FSA) contribution from $7,500 to $10,000.
He will restore the expanded Child Tax Credit for working parents, create a new refundable tax credit to cover startup costs for family childcare centers, create a new tax credit for working family caregivers, and increase the dependent care Flexible Spending Account contribution limit.
Occurrences
Evidence
Public Law 119-21 includes Section 70401, which raises the employer-provided child care credit to 40% (50% for eligible small businesses) and Section 70404, which raises the dependent care assistance program limit to $7,500, effective for tax years beginning after December 31, 2025.
The IRS says the Child Tax Credit is worth up to $2,200 per qualifying child, with the Additional Child Tax Credit up to $1,700, and notes the page was last reviewed or updated on June 8, 2026.
Assessments
A later-enacted federal tax law delivered part of the promise by raising the dependent care FSA limit and expanding child-care business credits, but the expanded Child Tax Credit was not restored and the new caregiver credit is not shown as enacted. That means the pledge was only partially fulfilled, with the completed portion occurring in a later term.