Senate Republicans Block $79 Billion Bill to Expand Child Tax Credit

The bipartisan deal adopted by the House with enthusiastic approval was shattered Thursday when Senate Republicans vetoed a bill that would have reduced taxes for working families and extended certain corporate tax advantages.

Under the proposed $79 billion bill, the child tax credit would have been available to lower-income families. The law would also have indexed payments for inflation for the 2024 and 2025 tax years.

The bill would have strengthened specific corporate tax incentives, such as deductions for research and development, interest charges, and investments in equipment, in an attempt to reduce the total costs of President Donald Trump’s 2017 tax reduction package. A bipartisan majority in the House approved the plan in January after Senate Democrats and House Republicans had negotiated it.

However, most Senate Republicans opposed the agreement, citing their ability to craft a more conservative tax package in 2025 should they seize control of Congress. By next year, several parts of Trump’s tax plan—which would significantly raise taxes on individuals and families while preserving significant tax cuts for businesses—will have expired.

With just 48 votes in favor, the legislation was unable to overcome a filibuster, which requires 60 votes. Vermont Independent Bernie Sanders voted against the measure, arguing it failed to adequately balance corporate tax cuts and family tax cuts. Senate Majority Leader Chuck Schumer (D-N.Y.) changed his vote to “no” to allow the bill to be reintroduced for further votes.

In January, the measure was approved by a 357-70 majority in the House. However, in a procedural vote Thursday, most Republicans opposed the plan, and it failed to receive the 60 votes necessary to pass.

Senate Republicans voiced concerns about the plan, leading many to believe it would fail there. Republicans also accused Democrats of using this vote as a political issue ahead of the November election.

As a cost-cutting move, the tax benefits expired when Republicans under Trump’s administration adopted a tax overhaul in 2017.

The liberal research group Center on Budget and Policy Priorities estimates that, once fully implemented, the child tax credit reforms would help up to half a million people escape poverty.