Fact Check: 4.5 million children could lose their tax credit under Trump's proposed tax plan.

Fact Check: "4.5 million children could lose their tax credit under Trump's proposed tax plan."

What We Know

The claim that "4.5 million children could lose their tax credit under Trump's proposed tax plan" stems from proposed changes in the Child Tax Credit (CTC) as part of President Donald Trump's tax reform initiatives. The proposed legislation, known as the "One Big Beautiful Bill Act" (OBBBA), aims to make the enhancements from the Tax Cuts and Jobs Act (TCJA) permanent. The Senate version of the bill would increase the CTC from $2,000 to $2,200 starting in 2025, while the House version proposes an increase to $2,500 through 2028 (Kiplinger, CNBC).

A significant change proposed in the OBBBA is the requirement for recipients to have a valid Social Security number (SSN) to qualify for the CTC. This new requirement would affect mixed-status families, where one parent may not have an SSN. The Center for Migration Studies estimates that this change could result in over 4.5 million children, most of whom are U.S. citizens, losing eligibility for the CTC (Kiplinger, CNBC).

Analysis

The claim is supported by credible sources, including analyses from the Center for Migration Studies and statements from tax policy experts. The estimate of 4.5 million children losing access to the CTC due to the SSN requirement is based on demographic data and the potential impact of the proposed legislation (Kiplinger, CNBC).

Critically assessing the reliability of these sources, both Kiplinger and CNBC are established financial news outlets known for their reporting on tax policy and economic issues. They provide context and detailed explanations of the proposed changes, including the implications for low-income families and mixed-status households. The analysis from the Center on Budget and Policy Priorities (CBPP) further corroborates the claim, emphasizing that the proposed changes would not only affect eligibility but also leave millions of children without adequate support (CNBC).

However, it is important to note that the proposed legislation is still subject to change as it moves through Congress, and the final outcome may differ from the current proposals. Nevertheless, the analysis indicates a significant risk of millions of children losing their tax credits if the legislation is enacted as currently drafted.

Conclusion

Verdict: True. The claim that "4.5 million children could lose their tax credit under Trump's proposed tax plan" is substantiated by credible sources and expert analyses. The proposed requirement for an SSN to qualify for the Child Tax Credit would indeed lead to a substantial number of children, primarily U.S. citizens, losing access to this financial support.

Fact Check: 4.5 million children could lose their tax credit under Trump's proposed tax plan.