Senator Warnock’s Proposal for Child Tax Credit Expansion

Democratic Senator Raphael Warnock is advocating for a significant expansion of the Child Tax Credit. He argues that tariffs imposed during the Trump administration are contributing to increased costs of preparing children for school. A report from Warnock’s office reveals that the cost of purchasing school supplies for a fourth-grade student at various schools in Georgia ranges from $96 to $132.

Warnock is promoting the American Family Act, which aims to increase the credit, provide monthly payments, and offer additional assistance following a child’s birth. Warnock stated, Expanding the Child Tax Credit is not only the right thing to do morally, but the smart thing to do economically.

Current Child Tax Credit Overview

Under the current federal Child Tax Credit, families can receive up to $2,200 for each child under 17. The full credit is available to single filers earning up to $200,000 and married couples earning up to $400,000, after which it begins to phase out. While it primarily reduces a household’s tax bill, lower-income families may receive up to $1,700 per child as a refund through the Additional Child Tax Credit. Families typically claim this benefit during their annual tax return filings.

Impact of Rising School Supply Prices

Warnock’s office examined supply lists from five urban and rural schools in Georgia. Findings showed costs of $96 to $132 per child. The Bureau of Labor Statistics reported an 8.4% increase in educational supplies prices between May 2024 and May 2026. A separate analysis noted a 7.7% increase in a basket of school supplies, with lunchbox essentials rising by 10.9%.

Specific items saw more substantial price hikes: lunch boxes increased by 26.8%, one-subject notebooks by 23%, and index cards by 22.2%. Amazon data indicated a 31.4% rise in prices for a 36-pack of Crayola colored pencils from July 2025 to July 2026.

The report attributes these increases partly to tariffs, as many common classroom items are imported from countries subject to higher U.S. duties. For instance, Crayola’s colored pencils, made in Brazil, faced a 25% tariff imposed by the Trump administration.

Details of the American Family Act

The American Family Act, co-led by Warnock and Senator Michael Bennet, proposes increasing the annual child tax credit to $4,320 for children under six and $3,600 for those between six and 17. This would translate to monthly payments of $360 and $300, respectively. It also aims to introduce a $2,400 credit for newborns and make these changes permanent.

The Act ensures that lower-income families can receive the full credit while phasing out for married couples earning over $150,000. Warnock’s report notes that nearly a third of children in Georgia miss out on the full credit due to their parents’ low income. The temporary expansion of the credit in 2021 through the American Rescue Plan Act saw Georgia’s child poverty rate drop by 42.7%.

Opposition to Expanding the Tax Credit

The Cato Institute, a libertarian think tank, opposes expanding the Child Tax Credit. They argue that its refundable portion resembles government spending rather than a tax reduction. In a 2025 analysis, Cato highlighted that refundable payments could be given to households without federal tax liabilities, estimating that 40% of the program’s cost in 2024 was direct spending. Cato also criticized its effectiveness in targeting poverty reduction and suggested that states tailor such programs to their needs, rather than federal expansion.

Next Steps for the Proposal

The American Family Act requires congressional approval. It has been introduced in the Senate and referred to the Finance Committee for consideration.