Senate Majority Leader Chuck Schumer (D-N.Y.) is preparing for a crucial vote on the House’s bill to expand the child tax credit (CTC) later this week. This move could mark the final legislative action before the Senate’s month-long August recess. The proposed bill, officially known as the Tax Relief for American Families and Workers Act, aims to provide significant financial relief to American families, improve affordable housing, and support small businesses.

Procedural Vote Announcement

A spokesperson for Schumer announced that a procedural vote on the $79 billion package will take place later this week. Schumer emphasized the benefits of the bill, stating, “The Tax Relief for American Families and Workers Act is good for kids, good for affordable housing, good for small businesses, and good for American families. This bipartisan bill passed the House overwhelmingly and we hope the Senate Republicans will join us.”

Despite its overwhelming approval in the House, where it passed 357-70 in January, the bill is expected to face significant challenges in the Senate.

Key Provisions of the Bill

The expansion of the child tax credit is a central feature of the bill, which includes an incremental increase in the $1,600 refundable cap and adjustments for inflation. Additionally, the proposal aims to reinstate several tax breaks for businesses, which were part of the GOP’s 2017 tax law. These include research and experimental expensing and small-business expensing.

Crafted by Senate Finance Committee Chair Ron Wyden (D-Ore.) and House Ways and Means Committee Chair Jason Smith (R-Mo.), the bill has faced consistent opposition from many Senate Republicans.

Opposition and Criticism

Sen. John Cornyn (R-Texas), a close ally of Senate Minority Leader Mitch McConnell (R-Ky.), expressed his expectation that Republicans will largely unite to block the bill. He criticized Schumer for not making a concerted effort to push the legislative item forward, saying, “Makes me wonder how sincere of an effort could this be if … we’re going to run out of time to give a bill adequate consideration. I don’t expect it to go anywhere.”

Senate Republicans have called for changes to the bill through an open amendment process. They have also raised concerns about the bill’s removal of the work requirement from the CTC. Sen. John Thune (R-S.D.) highlighted this issue in February, shortly after the bill passed the House, stating, “We need a process that allows for some amendments to try to tweak and fix some of the issues.”

Additionally, some lawmakers from New York have expressed dissatisfaction with the package because it does not include an increase in the state and local tax deduction.

Timing and Political Context

The vote is set to take place as lawmakers prepare to leave Washington for the annual August recess, which lasts more than a month. Throughout much of the summer, since the Senate completed work on the Federal Aviation Administration reauthorization, Schumer has used the Senate floor to hold “show votes” on various political issues. These votes, largely on reproductive rights, have been intended to highlight divisions between Democrats and Republicans ahead of the November elections.

The current legislative push for the child tax credit expansion underscores the ongoing debate over how best to support American families and businesses. While the bill has garnered bipartisan support in the House, its future in the Senate remains uncertain due to strong opposition from key Republican senators.

Broader Implications

The outcome of this vote will have significant implications for American families and the broader economy. An expansion of the child tax credit could provide crucial financial relief to millions of families, helping to alleviate child poverty and improve economic stability. Moreover, the proposed tax breaks for businesses are intended to stimulate economic growth and innovation.

However, the political dynamics in the Senate and the timing of the vote suggest that achieving a consensus will be challenging. The bill’s failure could highlight the deep partisan divides that continue to shape legislative efforts in Washington.

Conclusion

As Senate Majority Leader Chuck Schumer prepares for a pivotal vote on the child tax credit expansion bill, the debate over how to best support American families and businesses intensifies. The procedural vote later this week will be a critical moment in determining the future of the Tax Relief for American Families and Workers Act. Regardless of the outcome, the discussion surrounding this bill underscores the ongoing challenges and complexities of legislative action in a deeply divided political landscape.