Overview
The One Big Beautiful Bill Act (H.R. 1), recently passed by Congress and signed into law by the president, includes sweeping changes to federal policy that will deeply affect children and families. For Louisiana, a state where many families already face high poverty rates and limited access to child care, several provisions in the bill could increase economic hardship and reduce the resources families rely on to meet their basic needs. At the same time, the act includes a
few promising steps toward making child care more affordable for working families and encouraging greater investment in child care infrastructure.
Provisions Impacting the Early Childhood Education System
Child Tax Credit (CTC) Expansion (Section 70401, effective January 1, 2025 –
December 31, 2028)
The bill permanently makes the current level of $2,000 for the Child Tax Credit (CTC). However,
from 2025 to 2028, it includes a temporary $200 boost to the credit ($2,200 per child), and in
2029, the credit reverts to $2,000 per child. The refundable portion of the credit continues to be
indexed to inflation, but the $500 nonrefundable credit for other dependents is not. Generally,
tax experts estimate that 85% of the nation’s households would receive a tax cut in 2026.