S.Amdt. 5787

This amendment, proposed by Mr. Booker, aims to change how the government handles certain appropriations and tax laws. It specifically removes sections 202 and 203 of a previous proposal and replaces them with new provisions focused on funding and tax relief for workers and families.

Purpose and Key Changes

• Funding: It appropriates $2,500,000,000 to the Secretary of Homeland Security for fiscal year 2026, available until September 30, 2029.

• Tax Rates and Deductions: It creates the Keep Your Pay Act, which introduces a temporary increase in the standard deduction and raises income tax rates for the highest earners for taxable years between December 31, 2025, and January 1, 2036.

• Earned Income Credit (EIC): It expands the EIC by:

  • Lowering the minimum age for the credit (specifically for students, former foster youth, and homeless youth).
  • Removing the maximum age limit.
  • Increasing credit and phaseout percentages and amounts.
  • Allowing taxpayers to use earned income from a prior year if it was higher than the current year.

• Child Tax Credit: It establishes a refundable Monthly Child Tax Credit with advance payments. This includes:

  • Monthly allowances of $300 for children age 6 and older, and higher amounts for children under 6.
  • A system for "presumptive eligibility" to provide payments monthly rather than annually.
  • Provisions for the credit to apply in U.S. possessions, including Puerto Rico and American Samoa.
  • The termination of the previous annual Child Tax Credit (Section 24) for taxable years beginning after December 31, 2025.

• Other Dependents: It adds a Credit for Certain Other Dependents, providing a $500 credit for specified dependents who are not "specified children."