The Working Families Tax Cuts Help Working Moms and Charitable Americans

With National Working Moms Day and National Good Samaritan Day This Week, the Working Families Tax Cuts Are Making Life Easier for Moms, Families, and the Americans Who Give to Charity

THE WORKING FAMILIES TAX CUTS LAW SUPPORTS WORKING MOMS AND HELPS THEM AND THEIR FAMILIES GET AHEAD

“Parenthood is a unique gift, but the financial challenges of raising a family are real. This legislation responds to that challenge by providing additional support for young and growing families.” – Senate Finance Committee Chairman Mike Crapo (R-Idaho)

More than 46 million families claimed the child tax credit each year as of 2023. Republicans’ Working Families Tax Cuts expanded the child tax credit to $2,200, indexed it to inflation going forward, and made these increases permanent. (Bipartisan Policy Center: Breaking Down the Child Tax Credit: Refundability and Earnings Requirements – 12/18/23; U.S. Senate Committee on Finance: Working Families Tax Cuts – accessed 3/12/26)

The Working Families Tax Cuts included a “$124 billion investment in children of low- and middle-income families, in addition to the permanent, doubled child tax credit.” (U.S. Senate Committee on Finance: Crapo Highlights Tax Wins for Hardworking Americans and Main Street – 6/28/25)

The law also increases the employer-provided child care credit from $150,000 to $500,000 (or $600,000 for small businesses) to incentivize businesses to cover more of their employees’ child care costs. (CNBC: Biggest Trump tax cut benefits for small business owners to keep more income on Main Street – 10/5/25; U.S. Senate Committee on Finance: Working Families Tax Cuts – accessed 3/12/26)

Eligible businesses can give employees up to 12 weeks of paid medical and family leave per year and claim a 12.5% tax deduction on wages paid, incentivizing businesses to give working moms time off after the birth of their child. (U.S. Senate Committee on Finance: Working Families Tax Cuts Support the Next Generation – 3/5/26; U.S. Senate Committee on Finance: Working Families Tax Cuts – accessed 3/12/26)

Republicans’ law made the adoption tax credit partially refundable up to $5,000 per eligible adopted child, which “allows families with little or no federal tax liability to receive the credit, making it more accessible to a broader range of caregivers.” (U.S. Senate Committee on Finance: Working Families Tax Cuts Support the Next Generation – 3/5/26; Families Rising: The Adoption Tax Credit will be partially refundable in 2025 – What you should know – 7/22/25)

PARENTS AND CHILDREN HAVE MORE CHOICES AND NEW OPPORTUNITIES IN EDUCATION THANKS TO REPUBLICANS’ WORKING FAMILIES TAX CUTS

“Under the ‘Trump accounts,’ children in the United States with a Social Security number born between Jan. 1, 2025, and Dec. 31, 2028, will be given a stock market account with a one-time $1,000 deposit from the Treasury that will grow similarly to individual retirement accounts, or IRAs, according to the IRS.” (The Hill: Treasury to hold summit on Trump accounts – 1/25/26)

- All children under 18 with a Social Security number can have a Trump Account opened in their name. There are 44 million American families with children under the age of 18 that are eligible for Trump Accounts. (U.S. Department of the Treasury: Trump Accounts Jumpstart the American Dream – 1/22/26)

- “Parents or guardians can start contributing to accounts starting July 4, 2026, and deposit up to $5,000 per year.” (The Hill: Treasury to hold summit on Trump accounts – 1/25/26)

- “As part of the $5,000 limit, employers can contribute up to $2,500 per worker per year, which won’t count as taxable income, according to the IRS. This figure also adjusts for inflation after 2027.” (CNBC: Trump accounts get supercharged by employer matches — some companies offer up to $1,000 – 1/25/26)

Tax-exempt 529 savings accounts are now expanded in scope and their spending limit is doubled: “529 accounts were previously limited to K–12 tuition (up to $10,000 per year), but they can now be used for additional expenses such as books, online educational materials, testing fees (e.g., SAT/ACT), dual enrollment fees, tutoring by qualified professionals, and educational therapies for students with disabilities. The annual limit for all K–12 expenses [rose] to $20,000 starting January 1, 2026.” (Fortune: New 529 plan rules let Gen Z invest in careers, not just college—and it reflects a seismic shift in education – 7/28/25)

The Working Families Tax Cuts law also provided $10.5 billion in Pell Grant funding and expands eligibility to students in workforce training programs, opening up more opportunity for those pursuing non-traditional college education. (The Wall Street Journal: Tax Cuts, Student Loans, Medicaid: What’s in the GOP’s Megabill – 7/3/25; U.S. Senate Committee on Health, Education, Labor & Pensions: President Trump, Republicans Deliver Historic Wins in One Big Beautiful Bill, Reforming America’s Broken Higher Education System – 8/1/25)

AMERICANS ARE EMPOWERED BY THE WORKING FAMILIES TAX CUTS TO CONTINUE BEING THE MOST CHARITABLE PEOPLE IN THE WORLD

“The Annual Report on Philanthropy for the Year 2024 report that individuals, bequests, foundations and corporations gave an estimated $592.50 billion to U.S. charities in 2024,” a 6.3% increase from the previous year. (GivingUSA: Giving USA 2025: U.S. charitable giving grew to $592.50 billion in 2024, lifted by stock market gains – 6/24/25)

(Associated Press: Most adults have donated to charities this year – 12/22/25)

Thanks to Republicans’ Working Families Tax Cuts law, taxpayers are eligible to receive a deduction on charitable giving, up to $1,000 for single filers or $2,000 for married couples filing jointly, for both itemizers and those claiming the standard deduction. (U.S. Senate Committee on Finance: Senate Finance Committee Section-By-Section – accessed 3/12/26)

The Working Families Tax Cuts also created the Education Freedom Tax Credit, under which “taxpayers can receive a credit of up to $1,700 for contributions made to Scholarship Granting Organizations (SGOs) that would otherwise have been owed to the government in Federal income taxes.”
- “Scholarships can be used for any qualified education expense of an eligible student, which includes a broad set of expenses incurred in connection with or required by any K-12 public, private, or charter school. Examples include tuition for students to attend private schools of choice, tutoring at public schools, and support services for students with disabilities.” (U.S. Department of Education: U.S. Departments of Education and Treasury Release Joint Fact Sheet on Historic Education Freedom Tax Credit – 1/27/26)

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