(Opinion) Sen. Hassan’s plan would put more money in the pockets of working families

Passing the Stronger Start for Working Families Act could provide opportunity for next generation

POLICY

By: Kevin Cavanaugh

To be a family who isn’t struggling in today’s economy, a lot has to be going right. You need steady work, an income that stretches far enough, reliable child care — or the flexibility to provide it yourself — and the ability to absorb life’s unexpected costs.

And with today’s high cost of living, for everything from groceries to electricity to housing, the purchasing power of a working-class family just five years ago is a far cry from what it is today. Families that once felt secure are now struggling. Families who were already struggling are fighting today to survive.

According to the Federal Reserve’s national survey released last spring, only 65% of parents with kids under 18 say they’re “doing OK financially or living comfortably,” a number down 10 points since 2021. In the wealthiest, most powerful country in the world, there’s no question that there’s more that needs to be done to support America’s parents.

That’s why I’m so grateful to see New Hampshire’s own Sen. Maggie Hassan introduce a new bipartisan bill that would expand the Child Tax Credit, providing a tax cut to 3.5 million working families with children.

For those who aren’t familiar, the Child Tax Credit is one of the most effective tools the federal government has to support families raising children. Since its enactment in 1997, it has helped millions of parents cover the constant and rising costs of family life. In 2024 alone, it lifted 4.1 million people (including 2.4 million children) above the poverty line, helping parents afford the groceries, clothes and essentials families can’t do without.

But under current law, the credit is designed so that families with higher incomes receive higher credits than those who earn less. For example, a family earning $40,000 a year today does not qualify to receive the full credit, and families earning under $2,500 receive nothing at all.

In my opinion, these are the families who need this credit the most.

Sen. Hassan’s bill improves the Child Tax Credit in a simple and powerful way. Her bill would allow families to qualify for the Child Tax Credit starting with the very first dollar they earn. That means parents who are working part time, hourly or low-wage positions would no longer be penalized simply for earning too little. Work would still be rewarded, but families wouldn’t be left behind without the credit when they need help the most.

This is exactly the kind of practical, pro-family policy Washington should be focused on. Co-sponsored with Republican Sen. Todd Young, the bill shows that bipartisanship is still possible in today’s polarized environment.

Thank you, Sen. Hassan, for recognizing the challenges families, especially those who are struggling the most, are facing today and for taking direct action to address them. Both sides can agree: working families are the backbone of this country, and today’s children are the future. We must do all we can to give the next generation a healthy life full of opportunity, one where they can focus on their education and not where they’ll get their next meal.

I urge Congress to pass the Stronger Start for Working Families Act immediately and show that, when it comes to children and families, both sides can still come together to do what’s right.

Kevin Cavanaugh is a former Manchester alderman in Ward 1, where he lives, and is a former Democratic state senator.