Child Tax Credit proposal would require both parents to have Social Security Numbers

Key Takeaways

• May 2025 proposal requires both parents to have Social Security Numbers for Child Tax Credit eligibility.
• 4.5 million U.S. citizen or legal resident children could lose CTC, mainly in California and Texas.
• Mixed-status households with ITIN-filing parents would be excluded from the CTC, increasing child poverty rates.

A new proposal in the United States House of Representatives is drawing attention and concern from many groups and families across the country. The change, introduced by the House Ways and Means Committee in May 2025, impacts the Child Tax Credit (CTC)—one of the most important sources of support for families with children. It does this by changing who is allowed to receive the CTC based on Social Security Numbers (SSNs), and this new rule is especially hard for immigrant families and those with mixed immigration status.

Let’s break down what this new proposal is, what it means for millions of families, why the use of Social Security Numbers is important, and how this might affect child poverty, tax filing, and entire communities across the United States 🇺🇸.

What Is the Child Tax Credit and Who Can Get It Now?

The Child Tax Credit is a benefit given by the federal government to help families with the cost of raising children. Right now, under current law, a child needs to have a Social Security Number to qualify for the credit, but the parents or adults filing taxes do not need to have SSNs. This means parents who pay taxes using an Individual Taxpayer Identification Number (ITIN) can still claim the CTC if their child has an SSN. This is common among many immigrant families, especially those where parents may not be citizens but their children are.

For families who qualify, the CTC can lower the amount of taxes they owe or even result in a payment from the government, depending on their income. For low and middle-income families, this can make a big difference.

What Is the New Proposal and How Is It Different?

The new Child Tax Credit proposal from May 2025 would change the rules so that now both parents or adult filers also need to have Social Security Numbers, not just the child. This change would apply even if the child is a U.S. citizen or is legally present in the country. According to VisaVerge.com, this rule goes further than any past changes, which only required the child to have an SSN, not the parents.

Before, parents with ITINs could claim the CTC for their child with an SSN. If this new proposal becomes law, those same parents will not be able to get this benefit—even if they and their children pay taxes every year and file their tax returns properly.

This marks a big change because it targets not just non-citizens or undocumented individuals, but also their American-born and legally present children.

How Many Children and Families Would Lose the Child Tax Credit?

Experts estimate that about 4.5 million children in the United States 🇺🇸 would lose their eligibility for the Child Tax Credit under this proposal. These are not just any children—they are U.S. citizens or legally present, and many belong to families where one or both parents use an ITIN to file taxes rather than an SSN.

A large group affected by this change are “mixed-status households.” In these homes, parents may be undocumented immigrants, but the children are often American citizens. If even one parent doesn’t have an SSN, the whole family could lose the CTC under the new rule.

Breaking this down even more, more than half of these children live in just two states: California and Texas. Each of these two states could see about 900,000 children lose the CTC. Other states with large immigrant families would also be affected, but the impact would be especially strong in areas where immigrant populations are highest.

Why Is Losing the Child Tax Credit a Big Deal?

For many families, especially those with lower incomes, the Child Tax Credit isn’t just extra help—it can be the difference between getting by and falling into poverty. Experts and advocates say the CTC is one of the best tools the United States 🇺🇸 has ever used to keep children out of poverty.

Studies show that before these proposed changes, the CTC helped push child poverty rates down to record lows. If millions of children suddenly lose this help, it’s expected that child poverty rates will go up quickly, mostly among Latino and other immigrant families.

One important thing to remember is that many of these children are U.S. citizens by birth. They live, learn, and play alongside every other child, but would be treated differently just because their parents do not have Social Security Numbers.

Why Focus on Social Security Numbers?

A Social Security Number is a number given by the U.S. government to citizens, permanent residents, and certain workers. It is used for taxes, jobs, and getting government benefits. An ITIN, on the other hand, is a tax number for people who need to file taxes but do not qualify for an SSN—this often includes immigrants who are undocumented but still work and pay taxes.

Right now, as long as the child has a SSN, parents with ITINs can claim the Child Tax Credit. The new proposal closes this door, so if parents do not have SSNs—regardless of their children’s status or hard work—they cannot claim the CTC.

Many advocates call this change unfair. They argue it targets immigrant families in a way that punishes children for something beyond their control. Instead of helping all children living in the United States 🇺🇸, this rule draws a sharp line based on paperwork and adult immigration status.

What Does This Mean for Immigrant Families?

Immigrant families—including many with mixed citizenship statuses—often work hard, pay taxes, and contribute to the country in many ways. Many pay billions of dollars every year in state, local, and federal taxes, even when they do not qualify for most benefits or government programs. They do this because it’s the law and because they are building lives here.

If these families are blocked from receiving the CTC, two main problems could happen:

1. Increase in Child Poverty: Without the help from the CTC, more children in immigrant families will fall into poverty. This is especially true in Latino and other immigrant communities, which could see the biggest changes.
2. Lower Tax Compliance: The CTC is a strong reason for families—including those with ITINs—to file their taxes each year. If this benefit is taken away, some may stop filing taxes. When fewer people file taxes, the government risks losing billions in tax dollars every year, at a time when this money is needed for services and programs.

The Broader Effects: Beyond Single Families

Cutting out millions from the Child Tax Credit will not only hurt individual families. It has big ripple effects for schools, neighborhoods, and even whole cities and states.

Families who lose this support may have to skip meals, go without proper health care, or make hard choices about paying rent or utilities. Children growing up in poverty are more likely to struggle in school and health, and it can take years for them to catch up.

Further, if fewer immigrant families file taxes, this could reduce money collected by the government for programs everyone depends on—like schools, roads, and health care.

Why the Proposal Is Controversial

Advocacy groups and leaders across the country have spoken out against the new proposal to link CTC eligibility so closely with Social Security Numbers for parents. They argue it moves beyond past laws by punishing children for things out of their control, and call it a step backward for equal treatment under U.S. law.

In 2017, Congress changed the rules so that to get the CTC, the child needed an SSN, but parents could still use ITINs. This new idea, however, requires both parents or all adults who sign the tax return to have SSNs as well.

Many people are worried this would hurt children who have every right to the same help as others, especially in households with mixed immigration status. Since Latino families make up a big share of these groups, some say the proposal unfairly targets Latinos and deepens inequality.

“Stripping the CTC from citizen children in these [mixed-status] households… will likely suppress the tax filing rate… These proposals… ultimately harm citizen children.”

This quote from advocates points out that dropping the CTC for these children isn’t just about budgets—it’s about fairness, children’s well-being, and how the country treats its youngest and most vulnerable residents.

A Simple Comparison: Current Law Versus the Proposal

To make things simple, here is a table that shows the key differences:

This chart explains how just adding a rule about SSNs for parents changes the lives of millions of children.

Political and Legal Arguments

Supporters of the new rule say it will make the Child Tax Credit system more secure, but opponents believe it crosses a line by hurting citizen and legally present children in families where parents may not have SSNs.

Legal and civil rights groups suggest that this policy goes against principles like equal protection under the law because it treats some citizen children differently just because of their parents’ paperwork.

Many Latino organizations and broader coalitions say this narrow focus on Social Security Numbers goes too far in cutting off families, especially since these parents are paying taxes and following the rules for filing with an ITIN.

What’s at Stake for Families and the Nation?

How this policy unfolds will have a long-lasting effect on immigrant families and the entire country. If 4.5 million children are shut out, this leads directly to more child poverty—a problem that costs the United States 🇺🇸 far more in the long run.

It could also mean many families will question why they should file taxes if they get fewer benefits, which could harm tax compliance and reduce the resources available for important public needs.

States like California and Texas, with big immigrant populations, will especially feel the squeeze—putting extra pressure on schools, hospitals, and state programs to fill the gaps.

Finding Reliable Information

If you have questions about the Child Tax Credit, Social Security Numbers, or tax rules that affect immigrant families, the best source of up-to-date, correct information is the IRS official website. This site explains who can claim the CTC, the paperwork required, and any new laws that affect eligibility. You can also find rules about tax numbers and how to apply for an ITIN or SSN.

The Bottom Line

This new Child Tax Credit proposal would mark a dramatic shift in tax law by focusing on the immigration status and Social Security Numbers of parents, not just children. If it becomes law, millions of children—many U.S. citizens by birth—would lose out on needed support just because their parents don’t have SSNs.

Most experts and community groups warn this will push more families into poverty, hurt citizen children, and reduce the number of immigrant families who file taxes. The result would be fewer resources for community services and greater hardship for children who did nothing to create these policies.

The debate is still going on, and immigrant families, community advocates, and elected leaders are watching closely. It is important for families to stay informed about the laws that affect them, know their options, and speak up if their children face unfair treatment.

For further details, tax questions, or support, check the IRS website or consult immigration resources such as those provided by VisaVerge.com. Families can also reach out to local non-profit groups and legal aid services who may be able to answer questions and provide help.

The issue of the Child Tax Credit and Social Security Numbers will remain important to the future of millions of immigrant families, and its outcome will say a lot about how the nation supports its children, no matter their background.

Learn Today

Child Tax Credit (CTC) → A federal tax benefit designed to help families offset the cost of raising children by reducing tax owed or providing payments.
Social Security Number (SSN) → A unique identification number issued to U.S. citizens, permanent residents, and eligible workers for tax and governmental purposes.
Individual Taxpayer Identification Number (ITIN) → A tax processing number for individuals who are not eligible for a Social Security Number, commonly used by immigrants.
Mixed-status household → A family where members have different immigration or citizenship statuses, such as citizen children and non-citizen parents.
Tax compliance → The act of correctly filing and paying taxes according to law, essential for maintaining government funding for services.

This Article in a Nutshell

A House Committee proposal seeks to tighten Child Tax Credit rules. Both parents would need Social Security Numbers, excluding many mixed-status or immigrant families. Advocates warn this change could raise child poverty, especially among Latinos, and discourage tax compliance, leading to broader harms for entire U.S. communities and children.
— By VisaVerge.com

Read more:

• Sweden plans tougher social insurance rules for work permit holders
• H-1B holders in US not affected by new UK-India Social Security Agreement
• Social Security card and W-2 form accepted to prove your number
• REAL ID won’t be needed to enter Social Security offices in 2025
• Undocumented Immigrants Pour Billions Into Social Security