Elaine Maag

Writing in response to Treasury’s request for comment on forthcoming regulations for Section 530A Trump Accounts, Urban Institute experts highlight evidence that several elements of the program risk limiting participation among low- and moderate-income children.

Science, portrait and group of kids with smile at convention, expo or exhibition with happiness. Student, children or face with smile at tradeshow or scientific conference for knowledge and education getty Treasury plans to issue regulations further limiting who qualifies for the refunded portion of certain tax credits. Currently, noncitizens with work-authorized Social Security numbers (SSNs) who meet other eligibility rules can claim several refundable credits.

The One Big Beautiful Bill Act’s (OBBBA’s) changes to the child tax credit (CTC) and other programs, like tax benefits for child care, the adoption tax credit, and tax-advantaged savings accounts for children called “Trump accounts,” are projected to increase tax benefits for children in nominal terms by over $30 billion in fiscal year 2034. These changes will primarily benefit middle- and high-income families.