Passage of Budget Reconciliation Brings Increased Supports for Some Families, But Risks Undermining Safety Net Programs for Children in Need

July 2, 2025 (WASHINGTON, D.C.) — Save the Children and Save the Children Action Network (SCAN) recognize Congress's passage of the budget reconciliation package as a complex step forward. The bill includes deeply concerning provisions, such as policy choices that could threaten access to essential food assistance, especially for those in rural communities, while also including important tax provisions that offer long overdue support for hardworking parents.

Save the Children and SCAN remain deeply concerned about provisions in the bill that alter the Supplemental Nutrition Assistance Program (SNAP), a lifeline for millions of children and families. Starting in 2028, states may be required to shoulder up to 15% of the cost of SNAP benefits, a dramatic shift from the current federal commitment. New work requirements for parents of teens and increased administrative burdens on states could further threaten food access, particularly in rural and high-need areas.

At the same time, we're thankful for the family related tax provisions that were included, most of which were bipartisan as stand-alone legislation. They include:

• A permanent $200 increase to the Child Tax Credit, to $2,200, with the refundable portion of the credit capped at $1,700 per child, indexed for inflation – providing lasting support for families raising children.
• Enhanced child care tax credits, with the Child and Dependent Care Tax Credit delivering a $900 boost to 4 million working families and the Employer-Provided Child Care Credit made it more accessible for small and rural businesses.
• A higher cap for Dependent Care Assistance Program (DCAP) contributions, allowing families to set aside more pre-tax income for care.
• The creation of "Children's Investment Accounts" with a one-time $1,000 deposit for every child born in the U.S. – a forward-looking investment in our next generation.

These tax changes are victories for kids, parents, and the country's long-term economic health. They reflect an encouraging bipartisan understanding that America’s future depends on strong families and a stable caregiving infrastructure.

"The expanded Child Tax Credit, improved child care tax credits, and creation of the 'Children's Investment Accounts' represent meaningful progress in helping hardworking families raise secure, thriving children," said Allison Dembeck, Head of Policy for Save the Children. "These changes reflect a growing recognition that investing in kids is investing in America’s future."

"While we’re grateful for the tax provisions that will help families, we cannot ignore the increased hardship these SNAP changes could cause for the very families we aim to support," said Christy Gleason, Executive Director of Save the Children Action Network. "Food insecurity remains one of the greatest threats to a child's health, education, and future success – and SNAP is one of the most effective tools we have to combat it."

Save the Children and Save the Children Action Network will continue working with lawmakers on both sides of the aisle to strengthen the safety net for children and families, with special attention to the unique challenges facing rural America. We remain committed to advocating for bipartisan, comprehensive solutions that ensure all children – no matter their zip code – have what they need to grow, learn and thrive. 

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