Congresswoman McDonald Rivet Introduces Bill to Cut Taxes for Working Families by Thousands of Dollars Per Year

WASHINGTON- Today, with the support of a broad coalition of endorsers, Congresswoman Kristen McDonald Rivet (MI-08) introduced the Working Parents Tax Relief Act, a game-changing tax cut that would return to working parents up to an additional $5,500 per child under age four and lift hundreds of thousands of families out of poverty.

Today, it is more expensive than ever to raise a family. With costs like housing, health care, and groceries rising across the board, and the cost of child care alone reaching an average of $28,000 per year, Congress needs to pass solutions that make it easier for working parents to afford their bills. The Working Parents Tax Relief Act helps by giving back up to $5,500 of their hard-earned dollars per child under four. The bill is the latest tax cut effort by Congresswoman McDonald Rivet, who led the effort in Michigan to pass the largest tax cut for working families in the state's history.

"Bringing home a baby is the most magical moment of a parent's life, but it is also the most expensive. Parents with toddlers today are working harder than ever, but still find it impossible to keep up with the out-of-control costs of housing, child care, groceries, and so much more," said Congresswoman McDonald Rivet. "We need to cut their taxes now. Our bill puts thousands of hard-earned dollars back in their pockets, helping parents keep up with their bills while raising their families."

While Republicans in Washington are focused on political stunts, like renaming a tax cut for billionaires a tax cut for working people, this is what an actual tax cut for working families looks like.

The Working Families Tax Relief Act functions as an expansion of the Earned Income Tax Credit (EITC), the refundable tax credit for low- and moderate-income working Americans. In 2024 alone, the federal EITC lifted nearly 4.4 million Americans out of poverty, including 2.3 million children. The Working Parents Tax Relief Act would expand the EITC by…

• Providing a qualifying single or joint filer claiming the EITC up to an additional $5,500 per child under the age of four, for up to a maximum of three children.
• Increasing the maximum qualifying income for the EITC to nearly $100,000 if the filer has children under the age of four.
• Requiring the Treasury Department to create an optional monthly payment system for this EITC enhancement, so families can access their benefits throughout the year.

Analysis from PolicyEngine shows this bill would cut taxes for over four million families and reduce the child poverty rate by 7% by 2035, with nearly 75% of the benefit going to families with incomes under $50,000.

Congresswoman McDonald Rivet has a proven track record of successfully cutting taxes for working families. As a member of the Michigan state senate in 2023, she led the effort to pass the largest tax cut for working families in the state's history, expanding Michigan's match of the federal EITC from 6% to 30%. The impacts of that legislation were massive - in 2025 alone, 665,000 Michigan households received an average tax cut of $3,856 through the federal and expanded state EITC.

The Working Parents Tax Relief Act is supported by Third Way, Detroit Regional Chamber, Americans for Tax Fairness, Chamber of Mothers, First Focus Campaign for Children, Economic Security Project Action, Center for Law and Social Policy, Flint & Genesee Chamber, Saginaw County Chamber of Commerce, Flint & Genesee Group, Children's Foundation of Michigan, Single Family Living, Urban League of West Michigan, Feeding America West Michigan, Oakland Forward, Brilliant Cities, Anderson Economic Group, The Source, Lighthouse, Brightmoor Alliance, and the Accounting Aid Society.

"Congresswoman McDonald Rivet's bold new idea will help working families navigate the skyrocketing cost of raising young children," Zach Moller, Senior Director of the Economic Program at Third Way. "The Working Parents Tax Relief Act of 2026 would deliver real relief for working- and middle-class parents, and Third Way applauds her leadership on affordability for families."

"This proposal would be life-changing for working households raising young children. The challenge that faces too many working families is the lack of sufficient income that can open doors of opportunity. It would empower parents to spend the money however best meets the needs of their family. It will be easy to apply and qualify, and a tax cut will benefit far more working families than any program could," said Lou Glazer, President and Co-Founder of Michigan Future. "It also benefits employers. Providing a solution to three substantial impediments to working and working more: the difficulty of low-wage workers to pay for childcare; the benefit cliff; and the reality that far too many working households are shut out of benefits they are eligible for by a confusing and limited scale system of safety net programs."

"Being a parent is one of the most rewarding roles in the world-but in America, it's also one of the most expensive. Families are drowning in costs, many of them tied directly to raising children," said Erin Erenberg, CEO of the Chamber of Mothers. "Across our 48 Chamber of Mothers chapters around the country, we hear every day from moms who are stretched to the breaking point trying to make the math work. Making it more affordable-and more joyful-to raise children is core to our mission. The Working Parents Tax Relief Act would help ease the financial pressure on families during the years when they need it most."

"Parents are working harder and harder to get ahead in an economy that is becoming less and less affordable by the day," said Bruce Lesley, President of First Focus Campaign for Children. "Families need a tax code that actually reflects our values, and goes further to support hard-working parents and their kids - that's why Congress should pass the Working Parents Tax Relief Act of 2026."