Trump’s ‘Big Beautiful Bill’ Has ‘Excellent News for Families’: FRC Analyst

Pro-family experts are touting multiple provisions of President Donald Trump’s “One Big, Beautiful Bill” aimed at fulfilling the administration’s promises to facilitate family formation, ease adoption, and benefit homeschool students or those who attend religious schools.

The House Ways and Means Committee passed the 389-page bill on Wednesday morning by a 26-19, party-line vote. “It’s sad that every single committee Democrat voted for the largest tax hike in American history and against additional tax relief for families, farmers, and small businesses,” Committee Chairman Rep. Jason Smith (R-Mo.) told The Washington Stand. The bill now moves to the House Budget Committee.

In its current form, the bill contains economic provisions pro-family advocates say they have supported for years.

Increasing the Child Tax Credit

The president’s signature economic bill from his first term, the Tax Cuts and Jobs Act of 2017 (TCJA), doubled the Child Tax Credit (CTC) from $1,000 to $2,000 and raised the income families can earn as the credit phases out. Without renewal, the child tax credit would be cut in half at the end of this year. The “big beautiful bill” increases the child tax credit to $2,500 for the tax years 2025 through 2028 — the end of the Trump administration. The extra $500 CTC boost adjusts for the rampant inflation of the last Democratic administration, according to its advocates.

If Congress does not vote to maintain the increased CTC, the credit will return to $2,000; however, the bill makes that level permanent and indexes it for inflation each year, rounded to the nearest $100. The bill also requires both parents to have work-eligible Social Security numbers before claiming the credit.

“This is excellent news for families,” Quena González, senior director of Government Affairs at Family Research Council, told TWS. He singled out the bill’s proposal to increase the CTC as the fulfillment of a long-term policy goal of the organization’s. “FRC has long advocated for increasing the child tax credit. We advocated for it to be doubled the last time, and it is good to see it pegged to inflation and made permanent. In the current round of budgeting, where they’re trying to cut hundreds of billions of dollars, this is a really huge nod to the importance of family.”

Many who advocate for a pro-family tax code have singled out the child tax credit, which was created in 1997, as a way to aid struggling families while reducing the reach of government. “The relatively new child tax credit, which will slowly rise over the next several years to $1,000, should instead be immediately increased to at least $2,500 per child and indexed to inflation,” said Allan C. Carlson, then a distinguished fellow for family policy studies at FRC, during a Witherspoon Lecture more than two decades ago. Carlson has championed what he calls “a pro-family income tax” for decades.

AEI scholar Kevin Corinth made an identical proposal in February in AEI’s “Family Friendly Policies for the 119th Congress,” edited by Timothy P. Carney. “A supersized Child Tax Credit will ease the financial burdens on families raising children and those hoping to welcome new babies into the world,” agreed Patrice Onwuka of the Independent Women’s Forum.

Some of the big beautiful bill’s policies have reopened a rift on the Right, as some conservatives believe the government should make no fiscal policy promoting or discriminating against the nuclear family. Others blame tax credits for removing nearly half of all Americans from income tax rolls, shifting the tax burden onto a shrinking number of high earners.

González says the enhanced CTC will help secure America’s economic future by boosting the nation’s sagging demographics. “If you want to make the federal budget sustainable, you need a growing population to do that,” he contended. “This may be the first major policy move in that direction in years, or decades.”

Population levels are plunging globally, falling by more than half since 1950. The U.S. birthrate rose by less than 1% in 2024 to 1.626, according to provisional data released by the CDC last month, up from an historic low of 1.616 in 2023. Both levels are far below the 2.1 level needed for replacement. The pattern repeats throughout the West, where a birth dearth has stunted economic growth. “If we are unable to address our fertility crisis, the U.S. will face an existential economic crisis driven by a steep decline in fertility rates — one that could have an impact measured in the quadrillions of dollars,” wrote Jesús Fernández-Villaverde in The American Enterprise.

Child-Friendly Investment Accounts, Adoption Credits, and More

The “big beautiful bill” delivers numerous other tax policies desired by some pro-family advocates, according to a section-by-section analysis of the bill provided to The Washington Stand by the House Ways and Means Committee.

Make It Easier to Adopt a Child: One provision in the bill (Sec. 110107) gives parents a tax credit to write off up to $16,810 from their taxes in qualified adoption expenses. Under current law, the amount can be rolled over for five years. The new bill does not allow the tax to be rolled over but, beginning in 2025, it makes up to $5,000 of the credit refundable — meaning parents can receive that much money even if they do not owe taxes (have no tax liability); and the refundable amount is indexed for inflation. The credit phases out for those who have an adjusted gross income between $252,150 and $292,150. The bill also gives Native American tribal governments the same authority as states to deem an adopted child “special needs,” making the adoptive family eligible for the full $16,810 potential tax credit (Sec. 110108).

MAGA Accounts for Family Formation: The bill establishes a new category of Money Accounts for Growth and Advancement, or “MAGA accounts” (Sections 110115 and 110116). Beginning in 2026, those with children under the age of eight can contribute up to $5,000 a year (adjusted annually for inflation) to a MAGA account, which is invested in a diversified account that tracks the stock market, each year until the child turns 18. Friends, relatives, employers, and non-profits (including churches) may also make donations to these accounts and — provided the donations go to a broad class of recipients — nonprofits can make unlimited donations. For instance, a veterans organization could offer unlimited support for the children of gold star families.

For children born between 2024 and 2028 — the second Trump administration — the government will deposit $1,000 of taxpayers’ dollars into these MAGA accounts. Senator Ted Cruz (R-Texas) made a similar legislative proposal this week, introducing the Invest America Act on Monday.

When the child turns 18, he may take out up to half of its amount for college, vocational training, to start a business, or to purchase his first home. At age 25, he can withdraw the full amount for those purposes; at age 30, he can remove the full amount of the account for any reason.

The Trump administration has sought to promote family formation. “It is the task of our government to make it easier to have kids, to welcome them into the world,” Vice President J.D. Vance told the 2025 March for Life.

Encouraging School Choice and Homeschooling: The proposed “big beautiful bill” creates a new tax credit for those who contribute to charities that provide scholarships for elementary or secondary students to attend private or religious schools (Sec. 110109). It also allows parents, including homeschoolers, to withdraw funds from tax-advantaged 529 accounts to cover a broader array of educational expenses (Sec. 110110), including:

• curriculum and curricular materials
• books or other instructional materials
• online educational materials
• tutoring or educational classes outside the home
• testing fees
• fees for dual enrollment in an institution of higher education, and
• educational therapies for students with disabilities.

Decreases Government Policies Encouraging Gambling: One provision modestly discourages gambling by reducing how much wagering losses a person can write off (Sec. 110014). Currently, gamblers can write off only gambling losses up to the amount of their winnings, and other gambling-related expenses in excess of the amount they won. The bill reduces all gambling-related deductions to the amount of his winnings.

González was not alone in praising those parts of the bill. “We are encouraged to see the House Ways and Means Committee increase their response to the needs of American families, especially support for young and growing families through the child tax credit and the foster and adoption tax credit,” said John Mize, CEO of Americans United for Life. “We at March for Life are grateful for the pro-life, pro-family reconciliation bill text released today,” according to a post on the annual pro-life event’s social media account. “These provisions will strengthen a longstanding family that benefits all American families,” said Concerned Women for America LAC. And ACLJ Action held that “this Child Tax Credit update sends a powerful message: We value children. We value parents. And we value the American family.”

The bill’s supporters note its overall fiscal impact, as well. “Instead of a $1,700 tax hike, working families still recovering from Biden’s inflation crisis will now receive on average a $1,300 tax cut and workers will get $3,300 more in real income back into their pockets,” said a press release the committee emailed to The Washington Stand Wednesday morning. “Permanence of the 2017 Trump tax cuts will save 6 million jobs, including 1.1 million manufacturing jobs.”

“This cornerstone of President Trump’s economic agenda will put the interests and needs of working families and small businesses ahead of Washington, bring jobs and manufacturing back to America, and usher in a new golden era of prosperity,” Rep. Smith told TWS.

How much of the bill will survive the Senate legislative process remains to be seen. Senator Eric Schmitt (R-Mo.) told Fox Business on Wednesday morning the bill will see Senate action “probably sometime in the early fall.”

AUTHOR

Ben Johnson

Ben Johnson is senior reporter and editor at The Washington Stand.

EDITORS NOTE: This Washington Stand column is republished with permission. All rights reserved. ©2025 Family Research Council.

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