New Legislation Would Provide Direct Financial Support to Parents, Start Building Wealth for their Child

WASHINGTON – Today, Senator Ruben Gallego (D-AZ) introduced the Strong Start Act to help relieve the financial burden on parents and set kids up for success. The bill would provide a one-time, direct payment of $3,000 to parents to pay for upfront costs like purchasing a crib, stroller, and car seat. It would also create an American Dream Account for each newborn.  

“As a father of three, I understand just how expensive it is to welcome a child. From the crib and car seat to the seemingly endless diapers and wipes, the costs add up fast. And those costs are just the beginning of what kids need to grow up financially secure,” said Senator Gallego. “This bill is about ensuring every American child gets a strong start in life. It’s about getting us one step closer to making sure every kid, no matter their circumstances, can achieve the American dream. I’ll fight for this bill because it what kids and their parents deserve.”  

The Strong Start Act would:  

  • Establish a $3,000 New Child Tax Credit to be paid to parents as a one-time payment as soon as 30-days after birth.  
  • Change the name of Trump Accounts to American Dream Accounts and make the $1,000 government contribution permanent, indexed to inflation.
  • Automatically enroll newborns into the program, reducing the logistical burden on families.
  • Add an additional $500 yearly government contribution for children ages 0 to 17 from households with incomes below $75,000 ($150,000 for married joint filers), indexed to inflation.
  • Add an additional $250 yearly government contribution ($750 in total) for children from Earned Income Tax Credit (EITC)-eligible families per year, indexed to inflation.
  • Create a $1 to $1 match on individual contributions, not to exceed $250 per year, for households eligible for the EITC.

Read the full legislative text HERE.

While the New Child Tax Credit is one-time targeted support to help parents during the difficult and expensive newborn stage, long-term investments are needed to set children up for success in the long run. The Strong Start Act is just one piece of Senator Gallego’s larger push to better support American families.  

In June, shortly after announcing that he would take paternity leave following the birth of his son, Cooper, Senator Gallego introduced the Postpartum Lifeline Actto require 12 months of full postpartum health coverage for new mothers under Medicaid and the Children’s Health Insurance Program (CHIP).  

Gallego has also backed the:

  • American Family Act, a bill to permanently expand the Child Tax Credit (CTC) for middle-class and low-income families and make the benefit refundable. The expanded, monthly CTC is proven to deliver economic security to American families and lift millions of children out of poverty.
  • Child and Dependent Care Tax Credit Act, a bill to increase the maximum Child and Dependent Care Tax Credit (CDCTC) to $4,000 per child, allowing families to receive up to $8,000 in tax credits to offset up to $16,000 in expenses.
  • Child Care Availability and Affordability Act, a bill to make child care more affordable and accessible by strengthening existing tax credits to lower child care costs. Specifically, the legislation would broaden the Child and Dependent Care Tax Credit (CDCTC), strengthen the Dependent Care Assistance Program (DCAP), and bolster the employee provided child care tax credit (45F).
  • Child Care for Working Families Act, a bill to ensure families across America can find and afford the high-quality child care they need.
  • Family and Medical Insurance Leave (FAMILY) Actto guarantee up to 12 weeks of partial income for workers who have to take leave for serious medical and family events. Paid medical and family leave is especially helpful for new parents.

Senator Gallego has also repeatedly pushed back against the Trump administration’s funding delays, freezes, and cuts to Head Start programs in Arizona and across the country.