American Families Win in the One Big Beautiful Bill

EMPOWERING PARENTS AND PROTECTING WOMEN AND CHILDREN

INTRODUCTION

The One Big Beautiful Bill (OBBB) delivers bold reforms that promote the flourishing of the family in the home and the workplace while protecting women, single moms, pregnant women, children, and the unborn – most vulnerable family members of all. Millions of families now have the option for a variety of tax credits, and the workplace has permanent incentives to prioritize the offerings of childcare and paid family leave so that employees can thrive in the home and in the office. The HOPE Agenda, America First Policy Institute’s policy framework that empowers mothers, protects children, and uplifts the family, champions these same kinds of policy solutions. The OBBBA marks a historic step toward prioritizing the needs of American families and delivers the following Family First wins in this landmark legislation:

1. Protects Women and Children by Cutting taxpayer funding to the largest provider of abortions and gender transition treatments for minors

Taxpayer dollars should not be used for gender transitions for minor children or abortions. The United States had the most permissive laws during the Biden era surrounding transgender treatments for children when compared to other Western nations. According to an AFPI analysis, only 12%-27% of children with gender dysphoria carry the condition into adulthood, despite receiving irreversible medical interventions that impact them for life. AFPI has supported state level initiatives that have banned public funds from use for medically transitioning minors, policies that Congress could follow. The OBBB furthers these goals by diverting taxpayer funding from Planned Parenthood, an organization providing abortions and transgender treatments for minors, while strengthening women’s access to healthcare services and healthcare services for those who need care the most. The Hyde Amendment is a legislative provision enacted in 1980 prohibiting the use of federal funds to pay for abortion, except to save the life of a woman, or if the pregnancy arises from incest or rape. The OBBB provision streamlines federal benefits, by removing unnecessary spending to nonprofit organizations that are primarily engaged in family planning services or reproductive services and provide for abortions other than for Hyde Amendment exceptions and which received more than $800,000 in payments from Medicaid in 2023.

This provision, paired with the recent Supreme Court decision in Medina v. Planned Parenthood South Atlantic, enacts guardrails and reforms to strengthen care for children, single-parent families, pregnant women, and more. The recent Medina case highlighted how women’s health centers provide more services than Planned Parenthood facilities and are more available. The legislation also opens the door for states to further restrict funding for dangerous abortion providers through similar policy that regulates Medicaid reimbursements. The removal of federal funding from Planned Parenthood has the potential to close dozens of abortion facilities nationwide that depend on federal funding to keep their doors open, and open opportunities for women to access other non-abortion related facilities that prioritize the health of women and their children.

Less taxpayer money going to non-profits like Planned Parenthood, the largest provider for abortions and gender transition treatments services for minors, benefits family health centers and other clinics that provide more services for those who need it most. The bill calls for:

• The removal of Medicaid reimbursement funds previously given to Planned Parenthood and other abortion providers for health-related services will cease for a 1-year period.

• The bill ensures that no American taxpayer federally funds the work of Planned Parenthood or other abortion-providing health facilities.

2. TRUMP child savings ACCOUNTS

The OBBB supports savings for American children and new families with the creation of the Trump Investment Accounts (Trump Accounts), a baby bonus for newborns. Fostering early investing for our youngest Americans will enable children and families to benefit from compounded growth. With the investments in American companies and assets, the value of the accounts will be aligned with the prosperity of the American economy and focus on incentivizing education, entrepreneurship, and home ownership while encouraging financial security.

Child savings accounts will chart the path to prosperity for families and children and provide a financial head start for a better future.

• The Trump Accounts will be funded with an automatic one-time government contribution of $1,000 for every child born between January 1, 2024 and December 31, 2028.
• The Accounts will track a stock index and allow for additional private contributions of up to $5,000 per year.
• The funds may be withdrawn when the child turns 18 and may be used to attend school, get married, or purchase a home.

• Further administrative guardrails would ensure that at least one parent of an eligible child be a U.S. citizen and that at least one parent have an eligible working SSN.

3. Enhanced Employer-Provided child care tax credit

OBBB offers an increase in tax credits for those employers who provide childcare services for their employees. As approximately 65% of children under five years old live in a family where both parents work, and 70% of parents have difficulty affording childcare, a tax incentive for employer-provided childcare services minimizes childcare stresses on working parents and increases workplace retention and satisfaction. A significant federal investment in employers and working families assists workplaces in offsetting childcare costs, making such a benefit offering more feasible for even smaller businesses, even allowing businesses to pool resources.

Employers and working families both greatly benefit from prioritized and incentivized childcare benefits. The bill calls for:

• An increase in the maximum Employer-Provided Child Care Credit from $150,000 to $500,000, with a maximum of $600,000 for certain eligible small businesses.
• An increase in the percentage of childcare expenses that an employer can claim from 25% to 40%, with up to 50% for certain eligible small businesses.

• An update on the definition of “qualified childcare expenses” to include facility construction costs, operation costs for the childcare facility, and others.

4. Permanent increase in child tax credit for families

The bill increases and provides permanency for child tax credits for families, equaling $2,200 per child per year, a $200 per child increase per child per year, and further boosting support for families and their needs. A $200 per child increase in the child tax credit does more than incentivize family-building – it supports the needs of the family by keeping more money in the pockets of the parents who care for the children. An increased child tax credit affirms the value of children in America and the importance of empowering parents as they raise their children.

An increased child tax credit encourages family-building and investment back into American families.

• Over 27 million American families claim a child tax credit annually.
• Cost of raising a child increased by more than 21% during the Biden Administration.
• The new child tax credit is increased permanently, providing more funds for the family and caring for their children.
• The bill requires a child’s SSN to claim the credit and the taxpayer’s or spouse’s SSN, and further administrative guardrails would prevent false claims.

5. Refundable adoption tax credit

The bill recognizes the value of family-building by adoption and the need to provide adoptive families with a tax credit that honors their commitment to children in need of loving homes. As the federal government has historically provided non-refundable tax credits for adoption, a refundable credit keeps more funds in the pockets of those meeting the needs of their family’s newest members – adoptive children. A refundable tax credit keeps more money in the pockets of those who have adopted a child so that immediate needs of the child can be met. Tax credits for adoption empower families as they navigate an often complex and expensive adoption process. It also encourages the adoption of the more than 100,000 American children in need of loving adoptive families.

A refundable adoption tax credit encourages family growth and ensures more funds are kept for the children’s care, invested back into the family.

• At any given time, at least one million American couples are seeking opportunities to adopt, often facing substantial financial barriers sometimes meeting or exceeding $60,000.
• Taxpayers who currently adopt can claim the adoption tax credit on their taxes for up to $16,810.
• The bill makes up to $5,000 of this adoption tax credit refundable beginning in 2025.
  
  6. Permanent tax credit for employers offering paid family leave

The permanent tax credit for employers offering paid family and medical leave, provided by the One Big Beautiful Bill, promotes the stability of a parent in both the workplace and in the home as he or she adjusts to a new child. Employers will be able to utilize the tax credits to cover expenses related to the provision of paid family and medical leave, making the offering of such benefits more feasible for small and large businesses. These benefits increase workplace retention and satisfaction as the needs of employees as both members of the workplace and the home are prioritized and honored through benefits. Paid family and medical leave benefits will be felt as early as six months into employment, allowing for employees to be present for their families in the critical first weeks after birth or adoption.

Paid family leave is a key role in creating a work environment that prioritizes health and wellbeing of families during a critical time.

• The bill includes a permanent tax credit for those employers, in both states that mandate and do not mandate paid leave, voluntarily offering paid leave to employees, which allows employers to cover part of their insurance premiums.
• The bill reduces the minimum employment required for an employee to receive paid family leave benefits, from 1 year to six months.

CONCLUSION

The OBBB provides critical Family First benefits to incentivize employer involvement in providing child care and ease the burden on working families, diverting funding for the nation’s largest provider for abortions and gender transition treatments and protects the health of women and their children, providing increased and permanent child tax credits that keep more money within the family, creating a refundable adoption tax credit that encourages family-building through adoption, and ensures that employers offering paid family leave benefits receive permanent tax credits for prioritizing the needs of working families. A Family First approach means supporting Americans when building their families, in the workplace, and at home, and the OBBB champions families in each of these areas.