Congressman Valadao Introduces Tax Credit to Offset Early Expenses for New Families

WASHINGTON – Today, Congressman David Valadao (CA-22) introduced the bipartisan Supporting Newborn Parents Act of 2026 to create a newborn tax credit, separate from the existing Child Tax Credit (CTC), to help new families cover the significant costs associated with welcoming a child. In the United States, pregnancy, childbirth, and postpartum care alone can cost families thousands of dollars, and expenses during a child's first year of life can exceed $17,000—especially in California. This legislation would provide immediate, targeted relief to help ease the financial burden on parents during one of the most important and expensive times in their lives. Original co-leads of the bill include Reps. Tom Suozzi (NY-03), Blake Moore (UT-01), and Debbie Dingell (MI-06). “One of the most exciting moments for any expecting family is preparing to welcome a new child, but unexpected expenses can quickly add up and leave new parents facing costs far beyond what they planned,” said Congressman Valadao. “As a father of three, I know how quickly costs can pile up—from diapers and clothing to strollers, childcare, and other essentials during a baby’s first year. While the existing Child Tax Credit has provided important relief for many working families, parents often need support long before tax season arrives. That’s why I’m proud to lead the bipartisan Supporting Newborn Parents Act of 2026, which would provide up to $2,000 per newborn as an advance payment to help families cover the immediate costs that come with welcoming a child into the world. This commonsense bill gives working parents greater financial flexibility and peace of mind so they can focus on growing their family instead of worrying about how to make ends meet.” “Welcoming a new baby into the world should be one of the happiest moments in a family’s life, not one filled with fear about how to pay the bills,” said Congressman Suozzi. “At a time when so many Americans are struggling with the rising cost of living, this bipartisan bill will support young families and provide immediate, practical relief to working parents as they handle those critical first expenses.” “As a father of four, I know how quickly expenses add up when a new child arrives: diapers, car seats, strollers, clothing, formula, and the unexpected costs that come during the first year,” said Congressman Moore. “I’m excited to introduce the Supporting Newborn Parents Act to build on policies in the Working Families Tax Cuts, like the increased Child Tax Credit, by creating an additional tax credit for working parents of up to $2,000 per newborn child. This credit will help new and growing families by creating a financial cushion to meet their baby’s needs when they need it most.” “Bringing home a newborn should be a moment of pure love and wonder, not financial stress,” said Congresswoman Dingell. “This legislation puts tax dollars back into the wallets of working families when they need it most, helping to cover everything from diapers to doctor’s visits. I am proud to support this effort, because every family deserves peace of mind in those first precious moments.” The Supporting Newborn Parents Act of 2026 would: Create a standalone tax credit of up to $2,000 for families welcoming a newborn child, separate from the existing Child Tax Credit (CTC). Ensure low- and middle-income working parents can qualify for the credit, with benefits increasing alongside earned income. Allow families to receive the credit either as part of their annual tax refund or as an advance payment shortly after a child is born. Give parents flexibility to calculate eligibility using either their current-year or prior-year income. Align eligibility rules and income thresholds with the Child Tax Credit to simplify administration and avoid sudden benefit cutoffs. Adjust the credit amount over time to account for inflation. Supporting organizations include the Niskanen Center, Save the Children, Third Way, American Principles Project, Bread for the World, Searchlight Institute, Bakersfield Pregnancy Center, Community Action Partnership of Kern (CAPK), First 5 Kern, and Adventist Health. “A newborn credit helps parents weather the turbulence of their baby’s first year. This bill gives families the flexibility to make choices that work best for them at a critical moment. We thank Representatives Valadao, Suozzi, Blake Moore, and Dingell for their leadership in supporting their commitment to supporting working families,” said Leah Sargeant, Senior Fellow, Niskanen Center. “Save the Children is proud to support the Supporting Newborn Parents Act of 2026. This legislation recognizes the importance of supporting families during the earliest days of a child’s life, as well as the economic stress that can come with it. It’s a commonsense policy that supports hardworking families, including those in rural communities, and helps ensure every child has a strong start from day one,” said Allison Dembeck, Head of Policy, Save the Children. “The last thing new parents should have to worry about is how to pay for a hospital bill or a car seat. As costs rise, families need real support at one of the most important moments in a child’s life. That’s why we’re proud to endorse the Supporting Newborn Parents Act and grateful to Representatives Valadao, Suozzi, Dingell, and Moore for their leadership in easing the financial burden on new parents,” said Curran McSwigan, Deputy Director of the Economic Program, Third Way. “American Principles Project is proud to endorse the Supporting Newborn Parents Act. This bipartisan bill delivers real help to working parents exactly when the affordability crisis hits hardest — right after welcoming a new child. This $2,000 newborn tax credit will help alleviate the pain of hospital bills, diapers, and lost wages without punishing work or marriage, while offering flexible payments and a simple process. The vast majority of Americans agree: we need more babies and stronger families. This smart, pro-family proposal would deliver relief today and invest in our future. Congress should pass it,” said Jon Schweppe, Senior Advisor, American Principles Project. "Bread for the World applauds the introduction of the Supporting Newborn Parents Act of 2026, which will be a critical tool in addressing food insecurity for families. This will be a beacon of hope for families in a financially vulnerable season of life: when they are welcoming new children into their lives. Congress’s continued support for and expansion of tax credits for families is critical for sustaining positive outcomes, reducing child poverty, and ending hunger," said Eugene Cho, CEO, Bread for the World. “Parents should be able to focus on bonding with their baby in the first months after birth. Too often, though, this period of life is marked by financial insecurity as new expenses hit the pocket book. A newborn credit—providing up to $2,000 on top of the typical Child Tax Credit (CTC) in the first year of life—is a smart way to support those American families. The Searchlight Institute applauds this bipartisan effort,” said Will Raderman, Policy Director, Searchlight Institute. “The Bakersfield Pregnancy Center is grateful for the Bi-partisan bill "Supporting Newborn Parents Act of 2026". As a Kern County Primary Care Clinic-Free, with services specific to Pregnancy and Sexual health, we see first-hand the challenges our clients face in welcoming a new baby into their life.  This tax credit will help build nation committed to supporting moms and dads, equipping them with needed financial resources so that choosing to have a child is natural, expected and celebrated,” said Erin Rogers, Executive Director, Bakersfield Pregnancy Center. “Community Action Partnership of Kern (CAPK) supports the Supporting Newborn Parents Act of 2026 for its focus on strengthening families at a critical time. By easing financial strain for new parents, this legislation will allow our agency to better serve the community and enhance the effectiveness of our existing programs by helping move people out of poverty and towards self-sufficiency,” said Jeremy Tobias, Chief Executive Officer, Community Action Partnership of Kern (CAPK). “The Supporting Newborn Parents Act provides an important lifeline for families navigating the early stages of parenthood. A child’s earliest months and years are critical to healthy development, and we must continue creating meaningful support systems for parents and caregivers. As the costs of childbirth, postpartum care, and child care continue to rise, this legislation reflects an important investment in Central Valley families. Thank you to Congressman Valadao for his leadership on this issue," said Amy Travis, Executive Director, First 5 Kern. "Adventist Health strongly supports the Supporting Newborn Parents Act of 2026, which would provide a refundable tax credit of up to $2,000 per newborn to help ease the significant financial strain experienced by many of the rural, low-income, and working families we serve. By delivering timely, flexible support during a critical period, this legislation will help strengthen family stability and promote healthier starts for newborns across our communities," said Julia Drefke, MPA, Public Affairs Executive, Adventist Health. “In an era of declining family formation, we need action to support new parents during a vulnerable and volatile time of their life. This bill would support parents of newborns in a direct, visible way, helping make America a meaningfully more welcoming place to have a child. If it passes, it would become the most high-impact piece of pro-family legislation in a generation,” said Patrick T. Brown, Fellow, Ethics and Public Policy Center. "Babies come with new expenses and disruptions to work. What they don't come with is a check to pay for all of that. This bill is a long-overdue opportunity to fix that mismatch, and help American families start their lives as parents on a strong footing,” said Lyman Stone, Senior Fellow and Director of the Pronatalism Initiative, Institute for Family Studies. “Working families are the backbone of this country, and federal policy should reflect that. BPC Action is excited to see Reps Valadao, Suozzi, Moore and Dingell focusing on this critical issue. Investing in families is essential and Congress must continue bipartisan engagement on these issues to meet the needs of families in a fiscally responsible manner,” said Michele Stockwell, President, Bipartisan Policy Center (BPC) Action. Background: Working families across the United States rely on a range of family benefit programs, including the Child Tax Credit (CTC), Child and Dependent Care Tax Credit (CDCTC), and Earned Income Tax Credit (EITC). Yet despite this support, a critical gap remains in the months immediately following a child’s birth—a period when families face significant new expenses while household income declines by an average of 10 percent . The Supporting Newborn Parents Act of 2026 would address this gap by establishing a newborn tax credit to complement existing family benefits. This credit would provide timely financial support to help parents cover hospital bills, purchase essential supplies, and manage the financial strain that often accompanies the arrival of a new child. Read the full bill here . ###