American Family Act

S. 1393, the American Family Act, would establish a refundable child tax credit paid monthly to eligible families. Under the proposal, families would receive $300 each month for every child over age 6 and $360 monthly for children under age 6. The credit would phase out for higher-income families based on their modified adjusted gross income, targeting benefits toward families with lower and moderate incomes.

The bill would change how families receive child tax assistance by providing monthly advance payments rather than requiring families to wait until tax season to claim a larger annual sum. The legislation includes administrative provisions for determining eligibility, processing electronic transfers, and notifying families about their payment status. The monthly payment structure is designed to provide families with more immediate financial relief to help with ongoing childcare and family expenses.

The bill was introduced in April 2025 and is currently under consideration by the Senate Committee on Finance. It has 44 cosponsors, primarily Democrats and Independents. As with all legislation, the bill would require passage by both chambers of Congress and presidential signature to become law.