The Family Income Supplemental Credit Act (FISC Act) would create a new federal program that provides monthly cash payments to eligible pregnant women and to qualified caregivers of eligible children. The payments are intended to help families support pregnancy and child-rearing by offering ongoing monthly support, replacing the current Child Tax Credit and related tax provisions in the Internal Revenue Code. The program would be administered by the Social Security Administration (SSA) through a new Bureau of Family Statistics, with annual reporting to Congress and funding through annual appropriations. The act also includes transitional rules to ensure payments aren’t interrupted around birth and directs the repeal of the current Child Tax Credit and several other tax provisions tied to children. Key features include: fixed monthly payment amounts (pregnancy $800; eligible child $400 under age 6 or $250 age 6 and older), a 20% marriage bonus, income-based phase-outs, and a cap limiting total payments to no more than 1/12 of the beneficiary’s adjusted gross income (AGI). Eligible recipients are defined by citizenship/residency rules and the household’s income. Payments can be issued to only one qualified caregiver per child. The effective date is the first day of the first calendar month that begins at least one year after enactment.
Key Points
- 1New program structure:
- 2- Establishes monthly payments called under the Family Income Supplemental Credit (FISC) for pregnant women and for qualified caregivers of eligible children.
- 3- Applications are submitted to the Commissioner of Social Security (SSA) with required identifying information, pregnancy details or child/caregiver details, and income data.
- 4Eligibility and definitions:
- 5- Eligible child: under 18, not providing more than half of their own support, and a U.S. citizen/national or permanent resident.
- 6- Qualified caregiver: 18+, resides with the child, provides economic support; fraud disqualifications apply.
- 7- A recipient can receive payments for a pregnancy beginning after an application plus each month thereafter (as long as the pregnancy lasts at least 20 weeks).
- 8Payment amounts and bonuses:
- 9- Pregnancy payment: $800 per month.
- 10- Eligible child payments: $400 per month for children under 6; $250 per month for children 6 and older.
- 11- Marriage bonus: total monthly payments increase by 20% if the pregnant woman is married or if the beneficiary is married to the child’s qualified caregiver.
- 12Income phase-out and limits:
- 13- Monthly payments are reduced based on income: $16.67 decrease per $1,000 of adjusted gross income (AGI) over thresholds.
- 14- Thresholds: $125,000 AGI for an individual; $250,000 AGI for those filing jointly (with reductions applying to the beneficiary’s and spouse’s combined income).
- 15- Cap on total annual payments: cannot exceed 1/12 of the beneficiary’s (and spouse’s, if any) AGI for the most recently ended tax year.
- 16Payment administration and transition:
- 17- SSA may pay benefits for an eligible child to only one qualified caregiver.
- 18- If a birth occurs, the pregnancy benefit converts to child benefits for the child, with a 90-day period for a qualified caregiver to apply for the child benefits; SSA must avoid interruptions during this window and may not seek to recover payments if the transition window is not used or disapproved.
- 19Administrative and reporting framework:
- 20- Establishes a Bureau of Family Statistics within SSA to gather data needed to implement the program.
- 21- SSA to issue regulations, develop a status-change reporting system, and provide annual congressional reports on process time, recommendations to shorten delays, and total payments.
- 22Repeal of the Child Tax Credit and related tax provisions:
- 23- Subpart A of Part IV of Subchapter A of Chapter 1 of the Internal Revenue Code (the Child Tax Credit) would be repealed.
- 24- Numerous conforming amendments to tax code provisions related to child-related credits and taxes would be removed or adjusted.
- 25- Effective date for these tax changes is tied to the first taxable year beginning after the first calendar month described in the new program (i.e., after the program begins).
- 26Funding and effective date:
- 27- The program would be funded by unspecified appropriations from the Treasury as needed to carry out the section.
- 28- Effective date: the 1st day of the 1st calendar month that begins at least one year after enactment.