Democratic lawmakers in Connecticut are making another push to establish a refundable child tax credit after a similar effort fell short during the 2024 legislative session. With the cost of living soaring and families struggling to make ends meet, supporters argue that this financial relief is more necessary than ever.

House Bill 5986, formally known as An Act Establishing a Refundable Child Tax Credit Against the Personal Income Tax, has gained the backing of over 60 Democratic legislators. If passed, it would provide a much-needed financial boost to families across the state, particularly those hardest hit by rising childcare costs, housing expenses, and inflation.

At a press conference on Tuesday, state Representatives Kate Farrar (D-West Hartford) and Antonio Felipe (D-Bridgeport) stood alongside parents and advocates to highlight the urgency of making the child tax credit a permanent fixture in Connecticut’s tax code.

“We know that too many families in Connecticut are struggling to make ends meet,” said Farrar. “They’re fighting to put food on the table, keep a roof over their heads, and pay their utility bills. We’re here because we believe every child, regardless of their zip code, deserves the opportunity to grow and thrive in our state.”

The Rising Cost of Raising a Family in Connecticut

Connecticut already holds the unfortunate distinction of having the highest childcare costs in the country, making it increasingly difficult for families to stay afloat. According to the United Way of Connecticut’s ALICE (Asset Limited, Income Constrained, Employed) report, nearly 40% of families in the state struggle to afford basic necessities.

Felipe emphasized that this issue transcends party lines and should be a priority for all lawmakers, regardless of political affiliation.

“This isn’t about partisan politics—it’s about making sure working families can survive and thrive,” he said. “We need policies that reflect the reality of what families are facing.”

During the press conference, parents and healthcare professionals shared their personal experiences and concerns. Dr. Molly Markowitz, a pediatrician and chair of the Connecticut American Academy of Pediatrics, spoke about the tangible benefits of child tax credits, particularly their impact on children’s health and development.

“We know from research that tax credits are one of the most effective tools in reducing childhood poverty,” Markowitz explained. “They directly improve long-term health, educational outcomes, and overall well-being.”

She pointed out that Connecticut’s economic disparities have a disproportionate effect on children of color, with 23% of Black children and 27% of Hispanic children living in poverty, compared to just 6% of White non-Hispanic children.

“Children who experience food insecurity, unstable housing, or family stress are more likely to develop conditions such as obesity, asthma, and learning difficulties,” Markowitz added. “A child tax credit can serve as a buffer against these risks.”

What the Child Tax Credit Would Provide

Under the proposal, eligible families would receive $600 per child, benefiting approximately 550,000 children and covering about 75% of households in Connecticut. The credit would be fully refundable, ensuring that lower-income families with little or no tax liability still receive the full benefit.

Income eligibility caps would be set at $100,000 for single filers and $200,000 for joint filers. The estimated cost of implementing the tax credit is around $300 million per year, though that figure may fluctuate depending on the number of qualifying families and the income phase-out structure.

Despite uncertainty at the federal level—particularly due to recent budgetary moves by the Trump administration—Farrar remained resolute in Connecticut’s commitment to finding state-level solutions.

“No matter what chaos is occurring in Washington, we can take action here in Connecticut to make meaningful change,” she said. “That’s exactly what the child tax credit would do.”

Implications for Divorce Cases and Family Law

Beyond the immediate financial relief this tax credit would provide, its impact could extend into the legal realm—especially in divorce cases. Child support arrangements, custody agreements, and financial settlements all hinge on each parent’s ability to provide for their children. A refundable child tax credit could ease financial strain on single parents, potentially reducing conflict over financial responsibilities.

A  West Hartford Collaborative divorce attorney would likely view this policy as a positive step toward creating more stable post-divorce arrangements. By ensuring that both parents—especially the primary caregiver—have additional financial support, the tax credit could lead to fairer and more sustainable custody agreements. It may also lessen the financial tension that often complicates divorce proceedings, making collaborative divorce a more viable and less contentious option for families.

At the heart of the debate is one fundamental question: Should Connecticut prioritize the well-being of its children by enacting a policy that could provide real economic relief? As the 2025 legislative session unfolds, all eyes will be on lawmakers to see whether they take action—or let another opportunity slip away.