Good morning, Thread readers.

Last July, Congress did something noble for working families — expanding the Child Tax Credit to $2,200 per child and indexing it to inflation. Every President since Bill Clinton has expanded the CTC, and for good reason: it keeps 2.4 million children above the poverty line and has strong bipartisan support.

But here’s the catch — the credit still doesn’t kick in until a family earns at least $2,500. That means millions of the lowest-income working families, disproportionately headed by single mothers, are the last to see the full benefit. Some get nothing at all.

‍Senators Todd Young (R-IN) and Maggie Hassan (D-NH) want to fix that. Their bipartisan bill, The Stronger Start for Working Families Act, would let families earn the credit starting with the first dollar of income, not the 2,500th.

Let’s dig in.

The Bipartisan Beat

First, some history: the Child Tax Credit was signed into law by President Bill Clinton in 1997 and has been expanded by every President, including President Trump.

Most recently, in last summer's reconciliation package, the CTC was expanded to $2,200 per child and indexed the credit amount to inflation. The CTC has two parts: a nonrefundable portion that reduces your tax liability, and a refundable portion, sometimes called the Additional Child Tax Credit, that kicks in even if you owe little or nothing.

The challenge for a refundable tax credit is that a family must earn at least $2,500 before the CTC kicks in. If you earn less, you won’t qualify. The credit phases in slowly after $2,500, meaning low-income families are the last to see the full benefit.

Here’s what that looks like:

• ✅ A single mother working 20 hours a week at $15 an hour, bringing home roughly $15,000 a year, is eligible to claim the credit.
• ❌ A single mother who earned $2,000 last year does not qualify.

Bipartisan SolutionTo help even more families qualify for the CTC, Sen. Todd Young (R-IN) and Sen. Maggie Hassan (D-NH) introduced The Stronger Start for Working Families Act (S. 3596). Their bipartisan bill would allow families to earn refundable CTC benefits starting with the first dollar of income. There is currently no companion bill in the House of Representatives.  

• The bill is co-sponsored by Senators Roger Marshall (R-KS), Catherine Cortez-Masto (D-NV), Lisa Murkowski (R-AK) and Mark Warner (D-VA).

“The first dollar fix” would have an outsized impact: Nearly 3.5 million families with children would see a tax cut in 2026 according to the Tax Policy Center.

The Niskanen Center has been one of the leading advocates for improving the CTC and making it work for the families who need it the most. Here’s what their research found:

• Eliminating the CTC’s $2,500 income threshold would reduce poverty by 31%.
• It is also a pro-work policy. Expanding the credit is linked to a 1.1% increase in workforce participation for single mothers.

"Families across New Hampshire and the country are working hard to provide for their children, but too many are struggling with rising costs for essentials like groceries, child care, and utilities. The Child Tax Credit supports parents in raising the next generation, but right now, many hard-working families are not able to access the full tax cut because they don't get paid enough at work. I urge my colleagues on both sides of the aisle to support this commonsense bill that will help working families make ends meet and build a stronger future for their kids."

— Sen. Maggie Hassan (D-NH)

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"The Child Tax Credit is one of our most effective tools for helping working families make ends meet and ensuring children have the stability they need to thrive. By starting refundability at the very first dollar earned, our bill will expand access to the Child Tax Credit for low-income parents while strengthening the incentive to enter or remain in the workforce. This is a practical, bipartisan step we can take to support families, reward work, and help more Americans climb the economic ladder."

— Sen. Todd Young (R-IN)

Facts Be Told

Women are disproportionately concentrated in part-time, hourly, and caregiving-adjacent work. They are more likely to experience earnings gaps driven by family caregiving responsibilities and to head single-parent households.

All of this means women are disproportionately likely to fall below the $2,500 earnings threshold for the Child Tax Credit or to phase in slowly above it.

The scale of this gap is clear in the data: at every age and stage of life, women work part-time at significantly higher rates than men, and the disparity only grows when children enter the picture.

Women work part-time at nearly 3× the rate of men during prime working years

Full-time and part-time employment rates by age and sex reveal persistent gaps that widen during caregiving years — with direct consequences for earnings, advancement, and retirement security.

83% of women ages 25–54work full-time

94% of men ages 25–54work full-time

Making the Magic Happen

The following leaders have shown tremendous bipartisan spirit in their commitment to working families, inspired a new generation of explorers, or shined a light on history's hidden heroines.

• Ursula Clausing with U.S. Senator Maggie Hassan (D-NH)
• Greg Warren and Alex Kukura with U.S. Senator Todd Young (R-IN)
• Reid Wiseman, Victor Glover, Christina Koch, and Jeremy Hansen for reminding us to reach for the stars and the moon
• Norah O'Donnell for shining a spotlight on the 6888th Central Postal Directory Battalion, famously known as the "Six Triple Eight," for their extraordinary resilience and service during World War II in her book, We the Women: The Hidden Heroes Who Shaped America, among many other remarkable and groundbreaking women.

The Bottom Line

The Stronger Start for Working Families Act deserves greater co-sponsorship in the US Senate and a companion bill in the House of Representatives.

"The test of our progress is not whether we add more to the abundance of those who have much; it is whether we provide enough for those who have too little."

— Franklin D. Roosevelt

Senators Young and Hassan have done the initial hard work on this “test” question, setting all of us up to answer correctly.

"There can be no keener revelation of a society's soul than the way in which it treats its children."

— Nelson Mandela

Working together on this legislation will be good for our national and personal souls. Blessed are the children.

Be kind to one another.

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