Democratic Senator Pushes for Expansion of Child Tax Credit

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Democratic Senator Raphael Warnock is advocating for a significant expansion of the Child Tax Credit, citing the impact of tariffs introduced during President Donald Trump’s administration. These tariffs are reportedly increasing the cost of school supplies for children. A report by Warnock’s office highlights that purchasing necessary supplies for a fourth-grade student at five schools in Georgia costs between $96 and $132. Warnock is using these figures to support the American Family Act, which proposes an increased credit, monthly payments, and additional help following a child’s birth.

“Expanding the Child Tax Credit is not only the right thing to do morally, but the smart thing to do economically,” Warnock said in a press release. “I will keep fighting to get this done.”

Newsweek reached out to the White House for comments via email.

The Current Child Tax Credit

The federal Child Tax Credit currently provides up to $2,200 per qualifying child under 17. This full amount is available to single filers with incomes up to $200,000 and married couples with incomes up to $400,000, beyond which the benefit decreases. The credit mainly reduces federal tax bills but allows eligible low-income families to receive up to $1,700 per child as a refund through the Additional Child Tax Credit. Families usually claim this benefit during yearly tax returns instead of monthly payments.

School Supply Prices Increase

Warnock’s office reviewed supply lists in both urban and rural Georgia schools. Costs for supplies per child ranged from $96 to $132. Households with multiple school-age children could face spending hundreds before the school year starts. Data from the Bureau of Labor Statistics show that the consumer price index for educational books and supplies rose by 8.4% from May 2024 to May 2026. The Century Foundation and Groundwork Collaborative analysis found that school supply costs increased by 7.7%, with lunchbox staples rising by 10.9%.

The joint analysis noted larger increases in specific items, like a 26.8% rise for a lunch box, a 23% increase for a notebook, and a 22.2% hike for index cards. Warnock’s report cites Amazon price-tracking data showing a 36-pack of Crayola colored pencils increased by 31.4%, from $4.94 in July 2025 to $6.49 in July 2026. The report argues that tariffs contribute to these price hikes, as several common classroom products are imported and face higher U.S. duties. It mentions Crayola’s Brazilian manufacturing, which faces a 25% tariff, and highlights the impact on Chinese export items like pens and markers, facing an average 26.9% tariff rate.

The Trump administration maintained that tariffs protect American businesses and workers, encouraging production shifts to the U.S. and bolstering domestic manufacturing. They also argue that tariffs can eventually lower costs and increase wages.

What the American Family Act Would Change

The current Child Tax Credit provides up to $2,200 per qualifying child. The American Family Act, co-led by Warnock and Democrat Michael Bennet of Colorado, proposes raising the annual credit to $4,320 for children under six and $3,600 for older children up to 17. This would mean monthly payments of $360 and $300, respectively. The Act would also create a one-time $2,400 credit for newborns and make these expansions permanent. Families with lower incomes could receive the full credit, while married couples earning over $150,000 would see a phased decrease. Warnock’s report points out that nearly a third of Georgia’s children cannot receive the full credit due to low parental income. Research cited states that Georgia’s child poverty rate dropped by 42.7% when the credit was temporarily expanded in 2021.

Arguments Against Expanding Child Tax Credit

The libertarian Cato Institute opposes a further expansion of the Child Tax Credit, claiming the refundable portion is more akin to government spending than a traditional tax reduction. Their February 2025 analysis notes that refundable payments can reach households without federal tax liability and estimated such direct spending accounted for about 40% of the program’s cost in 2024. The institute argues the credit inadequately addresses goals like poverty reduction, expense reduction, or child-rearing encouragement. Rather than federal expansion, Cato suggests states should develop their policies based on their fiscal capacities and priorities.