The Family Income Supplemental Credit Act replaces the child tax credit with monthly payments to pregnant women and caregivers of eligible children, with payment amounts varying based on the child's age and the recipient's marital status and income.
Jared Golden
Representative
ME-2
The Family Income Supplemental Credit Act (FISC Act) establishes a program providing monthly payments to pregnant women and caregivers of eligible children, with payment amounts varying based on the recipient's status and the child's age, subject to income-based phase-outs and limitations. It also repeals the existing child tax credit, replacing it with this new family income supplement program. The program will be managed by the Commissioner of Social Security, who will establish regulations and reporting systems, and it is set to take effect one year after enactment.
FISC Act: Monthly Cash for Parents-to-Be and Caregivers, But Bye-Bye Child Tax Credit
The "Family Income Supplemental Credit Act," or FISC Act, throws a lifeline to pregnant women and folks caring for kids under 18, but it comes at a cost. Starting a year from now, this law sets up monthly payments through the Social Security Administration, while simultaneously killing the existing child tax credit.
Cash In, Credit Out
The core of the FISC Act is replacing the annual child tax credit with direct monthly payments. Here’s the breakdown:
- Pregnant? Get $800 a month, starting around week 20 of pregnancy, provided you're getting prenatal care (Sec. 2(d)(1)).
- Kid under 6? You get $400 a month (Sec. 2(e)(1)(A)).
- Kid 6-17? That’s $250 a month (Sec. 2(e)(1)(B)).
- Married? Add 20% to those amounts (Sec. 2(e)(2)).
But there's a catch (of course). These payments shrink for higher earners. For every $1,000 you make over $125,000 (single) or $250,000 (married), your monthly payment drops by $16.67 (Sec. 2(f)(1)). Plus, your total monthly payment can't be more than half your income (Sec. 2(g)).
Real-World Rollout
Let's say you're a single mom-to-be, making $40,000 a year. Once you hit that 20-week mark and show proof of prenatal care, you're looking at $800 a month. After the baby arrives, if you apply within 90 days, that $800 seamlessly transitions to $400 a month for a child under six (Sec. 2(i)). That's a direct, immediate boost.
Or picture a married couple with two kids, ages 5 and 8, making a combined $80,000. They'd get $480 (for the 5-year-old) + $300 (for the 8-year-old) = $780 a month. That's groceries, utilities, or a chunk of the rent, paid for.
But remember, the FISC Act completely replaces the existing child tax credit (Sec. 3(a)). So, if you were relying on that yearly lump sum come tax time, you'll need to adjust your budgeting. This is a shift from an annual tax break to a monthly income stream.
The SSA's New Gig (and Potential Headaches)
This whole operation gets run by the Social Security Administration, which is also setting up a new "Bureau of Family Statistics" to keep tabs on all this (Sec. 2(j)). They'll need to create a system for folks to report changes in marital status or who's actually caring for the kids (Sec. 2(k)(1)).
The bill also requires annual reports to Congress, detailing things like how long it takes to process applications and the total amount of payments dished out (Sec. 2(k)(2)).
While the extra cash could be a game-changer for many, the FISC Act also presents some potential hurdles. Proving you're the "qualified caregiver" (Sec. 2(c)(2)) and navigating the income phase-outs could get tricky. And, of course, there's always the risk of someone trying to game the system.
Overall, the FISC Act is a major shift in how the government supports families. It trades a once-a-year tax break for a monthly check, aiming to provide more immediate and consistent financial help. Whether it's a net win depends on your specific situation – and how smoothly the Social Security Administration can handle its new responsibilities.