Statement Opposing Treasury Department’s Proposed Rule to Reclassify Tax Credits as “Federal Public Benefits”

We, the Parent and Caregiver Advisory Board of the Automatic Benefit for Children (ABC) Coalition, are strongly opposed to the Treasury Department’s proposal to reclassify certain tax credits as “federal public benefits” under the 1996 Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA).

As a coalition, we fight for policies that provide all children and families with the regular financial support they need. It is for that reason that we advocate to expand the Child Tax Credit, which helps families with the costs of raising children and is one of the most powerful tools we have for fighting child poverty and ensuring that every child has the best possible start in life.

The Treasury Department’s proposal would significantly restrict eligibility for the refundable portion of the Child Tax Credit. For families, refundable tax credits like the CTC are not abstract tax policy. They can mean groceries in the refrigerator, rent and utilities paid on time, reliable transportation, school supplies, child care, and the ability to handle an unexpected expense without falling further behind. Read the full statement.