State Senator Kristen McDonald Rivet addresses supporters of her campaign for Congress during a primary election night vigil party on August 6, 2024 in Saginaw, Michigan.
Andrew Roth | AP
Rep. Kristen McDonald Rivet, D-Mich., will introduce a new bill to expand the Earned Income Tax Credit to provide a credit of up to $5,500 per parent of a child under the age of four.
The bill, shared exclusively with CNBC, is dubbed the “Working Parents Tax Relief Act” and it would provide an additional credit of up to $5,500 for up to three children under the age of four to eligible single or joint filers claiming the EITC. The bill would increase the maximum qualifying income to claim the EITC to approximately $100,000 annually and require the Treasury Department to create a monthly payment system for the increase.
It comes as Democrats are campaigning across the country on a message of affordability, arguing that Republicans and President Donald Trump have failed to lower costs for Americans. Polls show that the Democrats have the upper hand in the 2026 midterm elections and Trump may lose his majority in the House of Representatives and the Senate.
“Bringing home a baby is one of the most magical moments of a parent’s life, but it’s also one of the most expensive. Parents with young children today are working harder than ever, but still find it impossible to keep up with the out-of-control costs of housing, child care, groceries and more,” said MacDonald Rivet. “We need to cut their taxes now. Our bill puts thousands of their hard-earned dollars back into their pockets, helping parents pay their bills while raising their families.”
The EITC is available to low- to moderate-income workers and families, giving them a tax break. According to the , in the 2024 tax year, the average EITC amount paid to individuals and families in the US was $2,894. Internal Revenue Service.
Congress has increased the tax credit in the past. In 2021, the American Rescue Plan increased the child tax credit from $2,000 to $3,000 or $3,600 per child. cut boost child poverty About half in, but Congress let it expire and it was never renewed despite several attempts.
The House is Republican-controlled, so McDonald-Rivette’s bill has little chance of moving forward. But bills like this provide a foundation for the Democratic message in an election year.
The new bill is supported by groups like Third Way, Americans for Tax Fairness and the Children’s Foundation.
Zach Moeller, senior director of Third Way’s economic program, said of the bill, “The Working Parents Tax Relief Act of 2026 will provide real relief for working and middle-class parents.”
MacDonald Rivet helped pass a similar bill while a member. michigan State Senate, which increased Michigan’s matching EITC from 6% to 30%.
Eligible Michigan households received an average credit of $3,856 in 2025, according to the state Treasury Department.