H.R. 6634 creates a new refundable tax credit of $667 per month for families with eligible children ages 2-4 enrolled in early childhood education programs, distributed through monthly advance payments rather than at tax time. The credit phases out for higher-income families beginning at 300% of the poverty line and is adjusted annually for inflation starting in 2026. Eligible families can enroll through an IRS online portal and may be automatically enrolled if they receive certain government benefits, with the advance payments protected from garnishment and debt collection similar to Social Security benefits. The bill includes fraud prevention measures, identity verification requirements, and reconciliation procedures to ensure taxpayers repay any excess payments if they become ineligible or experience income changes. Most provisions take effect in 2026, though advance payments begin immediately upon enactment.
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