Washington, D.C. — On Wednesday evening, the House approved a bipartisan tax package valued at $78 billion, aimed at extending the child tax credit temporarily and reinstating several business tax benefits. The legislation is now slated for Senate consideration. Under the narrow majority of House Speaker Mike Johnson, the bill garnered significant cross-party support, passing with a vote of 357 to 70. The breakdown included 188 Democrats and 169 Republicans in support, while 23 Democrats and 47 Republicans voted against it.

The proposed legislation promises an increased credit for the first year to low-income families of approximately 16 million children, representing over 80% who presently do not receive the full benefit due to insufficient family income. According to some projections, the bill would elevate at least half a million children above the poverty threshold and better the economic conditions for an additional 5 million children still under the poverty line, with full implementation by 2025.

Financially, the agreement is projected to have a minimal effect on the federal budget, with an anticipated reduction in revenue of under $400 million over the next decade.