Senator Warnock’s Advocacy for Child Tax Credit Expansion

Democratic Senator Raphael Warnock has called for a significant expansion of the Child Tax Credit. He contends that tariffs introduced under former President Donald Trump are increasing the cost of preparing children for the school year. A report by Warnock’s office highlights that purchasing supplies for a fourth-grade student across five Georgian schools ranges from $96 to $132. This report serves as a basis for promoting the American Family Act, which proposes to enhance the credit, offer monthly payments, and provide extra support after the birth of a child. 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 Details

The federal Child Tax Credit currently offers up to $2,200 for each qualifying child under age 17. Single filers earning up to $200,000 and married couples filing jointly with earnings up to $400,000 receive the full amount. Beyond these thresholds, the credit decreases. The credit mainly reduces a household’s federal tax bill, though eligible lower-income families can 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 filing rather than receiving it in monthly payments.

Rising School Supply Prices

Warnock’s office analyzed supply lists from urban and rural Georgian schools. Costs ranged from $96 to $132 per child, indicating that families with multiple school-age children may face substantial expenses before school starts. The Bureau of Labor Statistics reported an 8.4 percent increase in the consumer price index for educational books and supplies from May 2024 to May 2026. Additionally, the Century Foundation and Groundwork Collaborative found a 7.7 percent rise in school supplies and a 10.9 percent increase in lunchbox essentials. Certain items saw even higher price hikes, such as lunch boxes up by 26.8 percent, notebooks up by 23 percent, and index cards up by 22.2 percent. Warnock’s report notes that tariffs are partly responsible for these increases, citing examples of imported goods from countries with higher U.S. tariffs.

Trump Administration’s Tariff Policies

The Trump administration has defended tariffs as a protective measure for American businesses and workers, aiming to encourage local production and fortify domestic manufacturing. The White House claims that tariffs could ultimately reduce costs and improve wages. Nevertheless, Warnock’s findings suggest tariffs may have contributed to rising school supply costs. For instance, a 36-pack of Crayola colored pencils manufactured in Brazil saw a price rise from $4.94 to $6.49, a 31.4 percent increase. A 25 percent tariff on goods from Brazil and tariffs on goods from China, the top exporter of pens and markers with an average 26.9 percent statutory tariff rate, are highlighted.

American Family Act Proposal

The American Family Act, co-introduced by Warnock and Senator Michael Bennet, seeks to increase the annual Child Tax Credit to $4,320 for children under six and $3,600 for those ages six to 17, translating to monthly payments of $360 and $300, respectively. The proposal includes a one-time $2,400 credit for newborns and aims to make these expansions permanent. Lower-income families would receive the full credit while married couples earning more than $150,000 would experience a phased-out benefit. Warnock’s report reveals that about one-third of children in Georgia aren’t eligible for the full credit due to their parents’ low earnings. Research shows a 42.7 percent drop in Georgia’s child poverty rate when the credit temporarily expanded under the American Rescue Plan Act to $3,600 for younger children and $3,000 for older children.

Opposition to Expanding the Child Tax Credit

The libertarian Cato Institute opposes further expansion of the Child Tax Credit, arguing that refundable components equate to government spending rather than tax reduction. A February 2025 analysis indicated that refundable payments might benefit households with no federal tax liability, with direct spending comprising about 40 percent of the program’s 2024 fiscal cost. The institute also argues that the federal credit is poorly targeted for objectives such as poverty reduction and lowering family expenses. Cato suggests states manage further expansions based on local budgets and priorities instead of federal policy.

Legislative Path and Next Steps

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