Congressman Cleaver Helps Pass Bipartisan Tax Bill to Strengthen Child Tax Credit, Support Affordable Housing

January 31, 2024
Press Release

(Washington, D.C.) – Today, U.S. Representative Emanuel Cleaver, II (D-MO) voted in favor of H.R. 7024, the Tax Relief for American Families and Workers Act, which was passed by the House of Representatives with a two-thirds majority. The bipartisan bill supports working families with an enhanced Child Tax Credit, boosts affordable housing construction by strengthening the Low-Income Housing Tax Credit, and promotes innovation by providing businesses with tax credits for research and development.

“When President Biden and Congressional Democrats passed the American Rescue Plan, we were able to provide families desperately needed relief and cut child poverty in half by strengthening the Child Tax Credit and expanding its reach to those who needed it most,” said Congressman Cleaver. “I would have certainly liked to restore the Child Tax Credit back to the levels in 2021, but I’ve always said that democracy demands compromise, and we must be pragmatic when searching for progress. Although the U.S. is experiencing the strongest post-pandemic economic recovery in the world, I know that there are Missouri families that are still struggling to get by—and I refuse to play politics when I could help provide those families with this lifeline instead.”

In 2021, President Biden and Congressional Democrats passed the American Rescue Plan, which included provisions to expand and strengthen the Child Tax Credit, helping to deliver record lows in child poverty. That year, nearly 40 million families with 65 million children received tax relief that every Republican in Congress voted against. Tragically, Republican refusal to extend the CTC led to a disappointing rebound in child poverty when the tax credit lapsed.

The Tax Relief for American Families and Workers Act will provide financial relief to working families by:

  • Expanding access to the Child Tax Credit, with a phased-in increase to the refundable portion of the Child Tax Credit for 2023, 2024, and 2025.
  • Eliminating the penalty for larger families by ensuring the Child Tax Credit phase-in is applied fairly to families with multiple children. 
  • Establishing a one-year income lookback to create flexibility for taxpayers to use either current or prior year income to calculate the Child Tax Credit in 2024 or 2025.
  • Providing inflation relief by adjusting the tax credit for inflation starting in 2024

Additionally, the Tax Relief for American Families and Workers Act will support construction of affordable housing by enhancing the Low-Income Housing Tax Credit—which Rep. Cleaver has been calling for since 2023. Estimates suggest that improvements to the Low-Income Housing Tax Credit included in the legislation will assist in building more than 200,000 new affordable housing units across the country, helping to increase the supply of low-income housing and drive down housing costs.

“Since President Biden was sworn into office, Democrats have worked tirelessly to pass bipartisan legislation that invests in hardworking families, local infrastructure, and American manufacturing,” said Congressman Cleaver. “This bipartisan proposal not only provides desperately needed relief to tens of thousands of families and children in my congressional district, but it will also help to build more affordable housing in communities like Kansas City. I believe lawmakers have a responsibility to put the needs of the American people over petty politics, and I will continue to support bipartisan solutions like the Tax Relief for American Families and Workers Act to deliver genuine relief to Missouri families.”

Official text of the Tax Relief for American Families and Workers Act is available here.

 

Emanuel Cleaver, II is the U.S. Representative for Missouri's Fifth Congressional District, which includes Kansas City, Independence, Lee's Summit, Raytown, Grandview, Sugar Creek, Greenwood, Blue Springs, North Kansas City, Gladstone, and Claycomo. He is a member of the exclusive House Financial Services Committee and Ranking Member of the House Subcommittee on Housing and Insurance.