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A sweeping new House reconciliation bill — referred to by Republicans as the “One, Big, Beautiful Bill“ — promises financial relief through expanded tax breaks and $1,000 “Trump Accounts” for newborns. But critics warn the legislation would slash essential aid for millions of low-income families, putting children at risk of deeper poverty, hunger, and loss of health coverage.
House Republicans estimate the proposals could deliver up to $13,300 more in take-home pay for the average family with two children. But the legislation’s emphasis on work requirements and restrictions on eligibility may exclude the poorest families from many benefits.
“What we’re trying to do is help hardworking Americans,” said House Speaker Mike Johnson (R-La.)during a June 8 interview on ABC News’ This Week.
20 Million Children Excluded from Full Child Tax Credit
One of the bill’s most debated provisions is an increase in the child tax credit from $2,000 to $2,500 per child, effective in 2025 through 2028. However, the credit is not fully refundable, meaning families with no or very low tax liabilities won’t receive the full amount — or any benefit at all.
According to Adam Ruben of the Economic Security Project Action, 20 million children would miss out on the full credit under this plan — an increase of 3 million from current law.
“It is raising the credit for wealthier families while excluding those vulnerable families from the credit,” Ruben said.
Under the proposal, a single parent with two children must earn at least $40,000 annually to access the full credit — a figure out of reach for many minimum-wage workers. By contrast, the 2021 expanded child tax credit under President Biden was fully refundable and cut child poverty in half, according to Elaine Maag, senior fellow at the Urban-Brookings Tax Policy Center.
New Barriers for Earned Income Tax Credit
The bill would also require low-income families to pre-certify for the Earned Income Tax Credit (EITC). A similar policy failed two decades ago and resulted in eligible families missing out on the credit, Maag noted.
Deep Cuts to Food Assistance
The House GOP plan includes nearly $300 billion in cuts to the Supplemental Nutrition Assistance Program (SNAP)over the next decade. SNAP currently supports more than 42 million Americans, 40% of whom are children.
“We’re talking about the deepest cut to food assistance ever,” said Katie Bergh of the Center on Budget and Policy Priorities (CBPP).
Proposed work requirements would affect parents with children over age 6 for the first time. Those unable to verify they work at least 20 hours per week could lose access to food benefits after three months.
CBPP estimates that more than 7 million people, including over 2 million children, would face reduced or terminated food assistance.
In a major policy shift, the bill also proposes that states cover 5% to 25% of SNAP costs — a break from the program’s history of 100% federal funding. States struggling with budget pressures might be forced to cut benefits or drop the program altogether, Bergh warned.
School Meals and Medicaid Also at Risk
Although school meals aren’t directly targeted, children who lose SNAP eligibility could lose access to free or reduced-price lunches, which are often linked.
Health care access is also on the line. The legislation proposes $1 trillion in cuts to Medicaid, the Children’s Health Insurance Program (CHIP), and Affordable Care Act subsidies.
Work requirements for Medicaid may cause millions to lose coverage, including parents, pregnant women, and individuals unable to prove exemption eligibility.
“Even people who qualify could fall through the cracks due to new documentation hurdles,” CBPP warned.
Children could also face new barriers to Medicaid and CHIP enrollment if the bill blocks a federal rule that simplifies access.
Without the extension of premium tax credits, up to 4.2 million Americans may be uninsured by 2034, according to Congressional Budget Office estimates. A family of four earning $65,000 could see $2,400 in additional yearly premiums without those credits.
Conclusion
While the House GOP bill contains elements designed to support middle-income families — like higher child tax credits and Trump Accounts — the overall package has raised alarms for increasing economic disparities.
“This is not a pro-family policy,” said Ruben. “It’s a plan that lifts some families up while pushing others down.”
The bill still faces hurdles in the Senate and may undergo significant revisions. But as it stands, advocates argue it could reverse major gains in child poverty reduction and widen the gap between wealthy and low-income American families.
