This bill codifies a new cash-support program called the Family Income Supplemental Credit Act (FISC) that pays monthly amounts to pregnant women and to qualified caregivers of eligible children. Payments begin when a pregnancy is at least 20 weeks and continue monthly through the pregnancy; after birth, the support continues for the eligible child via the caregiver.
Amounts vary by circumstance: $800 per month for pregnancy, $400 per month for each eligible child under age 6, and $250 per month for each eligible child age 6 or older, with a 20% marriage bonus in certain cases. It also repeals the existing Child Tax Credit and aligns core tax provisions accordingly, funding the program through annual appropriations and regulatory changes.
The bill also creates eligibility rules and administration provisions, including definitions of an eligible child and a qualified caregiver, income-based phaseouts, and special contingencies for transitions from pregnancy to child entitlement. It requires specific application content, sets up a dedicated Bureau of Family Statistics within the Social Security Administration to gather data, and mandates annual reports to Congress on processing times and total payments.
The effective date is one year after enactment, with a transitional provision to ensure uninterrupted benefit payments during pregnancy-to-child handoffs.
At a Glance
What It Does
Establishes the Family Income Supplemental Credit (FISC) to provide monthly payments: $800 for pregnancy; $400 per month for each eligible child under age 6; $250 for each eligible child age 6 or older. A 20% marriage bonus can increase total payments. Payments and eligibility are conditioned on income-based phaseouts and other criteria.
Who It Affects
Directly affects pregnant women and qualified caregivers of eligible children, plus households with eligible children. The Social Security Administration and the new Bureau of Family Statistics compile data and oversee administration.
Why It Matters
Creates a nationwide, cash-based support mechanism for families with young children, shifting emphasis from tax credits toward ongoing monthly income support and enabling more predictable household budgeting.
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What This Bill Actually Does
The FISC Act creates a federally funded program that makes monthly payments to pregnant women and to qualified caregivers of eligible children. Applicants must submit a detailed set of information, including personal identification, pregnancy status, income for the latest tax year, and caregiver details.
A key feature is the definition of an 'eligible child' (under 18, not fully self-supporting, and meeting citizenship or residency requirements) and a 'qualified caregiver' (18 or older, living with the child, providing economic support). Fraud risk is mitigated by penalties and eligibility checks.
Beneficiaries begin receiving payments once the pregnancy reaches at least 20 weeks and continue monthly for the duration of the pregnancy. After birth, payments continue to the caregiver of an eligible child.
Payment amounts are tiered: $800 per month for pregnancy; $400 per month per eligible child under age 6; and $250 per month per eligible child age 6 or older. A marriage bonus can increase the total payment by 20% if the beneficiary is married or married to a caregiver.Memoranda of operation lay out a phase-out for higher-income households: the total monthly benefit is reduced by a fixed amount for every $1,000 of adjusted gross income over a threshold ($125,000 for individuals, $250,000 for couples), with the cap set at 1/12 of the beneficiary’s AGI.
The bill also repeals the current Child Tax Credit and adapts related tax provisions, transitioning some tax-credit resources into the new FISC program. An administrative framework places a Bureau of Family Statistics within the Social Security Administration to collect necessary data, and annual reports to Congress detail processing times, program costs, and other metrics.
The act provides for an appropriation to fund the program and sets an effective date one year after enactment, with a 90-day bridge to convert pregnancy benefits to child benefits if birth occurs during the transition.
The Five Things You Need to Know
The pregnancy payment is $800 per month; eligible-child payments are $400 (under 6) or $250 (6 and older) per month, with a 20% marriage bonus.
Benefits begin in the pregnancy after 20 weeks and continue for the child via the qualified caregiver after birth.
Income-based phase-outs apply: a 16.67 per $1,000 reduction rule reduces benefits as AGI rises above $125,000 (individual) or $250,000 (joint), with a cap of 1/12 of AGI.
Only one qualified caregiver per eligible child may receive payments; fraud disqualifications apply and can be enforced.
The Child Tax Credit is repealed; the program is funded by annual appropriations and overseen by a new Bureau of Family Statistics within SSA.
Section-by-Section Breakdown
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Family Income Supplements: entitlement, applications, and payments
Section 2 establishes the core FISC program. It creates an entitlement for pregnant women and for qualified caregivers of eligible children, contingent on approved applications that must include identifying information, income data, and caregiver details. Eligibility hinges on pregnancy status (20 weeks) or caregiving for an eligible child, with monthly payments commencing upon approval and continuing thereafter. The section also sets general rules for payment amounts, including the $800 pregnancy payment and the tiered child payments, plus the 20% marriage bonus in defined circumstances.
Definitions and eligibility criteria
This portion defines the terms 'eligible child' and 'qualified caregiver' and includes fraud-related disqualifications. An eligible child must be under 18, not fully self-supported, and meet citizenship or residency criteria. A qualified caregiver must be 18 or older, reside with the child, and provide economic support. Fraud findings by the Commissioner may disqualify a caregiver, with due process implied by the statute.
Administration, reporting, and funding
The act creates the Bureau of Family Statistics within the Social Security Administration to collect and provide data necessary for program administration, while mandating regulations and an annual Congress reporting requirement. It also provides for a dedicated appropriation to fund the program and directs development of a reporting system to capture status changes in marital or caregiving arrangements.
Repeal of the Child Tax Credit
Section 3 repeals Subpart A of Part IV of Subchapter A of Chapter 1 of the Internal Revenue Code that relates to the Child Tax Credit, along with a set of conforming amendments to related tax code provisions. The repeal interacts with other sections (§26, §45R, §48D, §501(c)(26), and more) to reallocate or modify credits and thresholds in light of the new program, and establishes transitional rules for taxable years beginning after the first calendar month described in Section 2.
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Explore Finance in Codify Search →Who Benefits and Who Bears the Cost
Every bill creates winners and losers. Here's who stands to gain and who bears the cost.
Who Benefits
- Pregnant women in participating households gain direct monthly income support during pregnancy and, if applicable, transition to child-related benefits after birth.
- Qualified caregivers who reside with an eligible child and provide economic support receive a predictable cash stream, simplifying family budgeting.
- Families with eligible children, particularly in lower- and middle-income brackets, gain cash assistance that supplements other supports.
- The Social Security Administration and the newly empowered Bureau of Family Statistics gain a formal data-and-oversight role that could improve program monitoring and policymaking.
Who Bears the Cost
- The federal Treasury must fund ongoing monthly payments and the associated administrative costs through annual appropriations.
- IRS and related tax administration may incur costs in aligning or winding down the repealed Child Tax Credit and implementing integration with FISC.
- Program administration requires investment in data infrastructure and compliance activities within SSA and the Bureau of Family Statistics.
- Recipients may face privacy and reporting burdens to verify eligibility and ongoing status.
Key Issues
The Core Tension
The central dilemma is whether shifting from an existing tax credit to a cash-advances program will better support families in need without creating new administrative burdens or potential inequities, especially given phase-outs that could reduce benefits for higher-income families and the interaction with broader tax policy.
The bill replaces a tax-credit mechanism with direct monthly cash payments, which raises questions about administrative complexity, privacy, and the sufficiency of the proposed benefit levels given the wide variance in child-rearing costs. It relies on a new data-collection bureau within the SSA, which could raise concerns about data sharing, accuracy, and privacy protections.
The transitional rule that converts pregnancy-based entitlements to child entitlements within 90 days after birth creates a narrow window where eligibility and documentation must be aligned, risking gaps if timely applications are not filed. Financing the program through annual appropriations—without a clear multi-year funding trajectory—could hamstring long-term planning and lead to periodic funding shortfalls if Congress reprioritizes spending.
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