Missouri Republican Sen. Josh Hawley reportedly wants to increase the size of the child tax credit by 150%.
Hawley is calling for the child tax credit to increase from a maximum of $2,000 to $5,000 per child, Axios reported Monday night.
The senator also wants to apply the credit to payroll taxes. That would allow families who do not earn enough to pay income taxes to access bigger refunds.
The plan, which could cost $2 trillion to $3 trillion over 10 years, is one way for Republicans to help families.
"These are the people working class; people with families are who elected Donald Trump, and we need to deliver real and meaningful tax relief to them," Hawley told Axios.
The outlet added that Hawley spoke of his plan with President-elect Donald Trump and Vice President-elect JD Vance, who encouraged the specific amount.
With the GOP holding small majorities in both the House and Senate, Hawley's plan could challenge House Speaker Mike Johnson, R-La., and incoming Senate Majority Leader John Thune, R-S.D.
The child tax credit was temporarily increased during the COVID pandemic and lifted millions of children out of poverty. However, when it expired in 2022, 3.2 million American children fell below the poverty line, Newsweek reported.
In a column for Bloomberg, tax attorney Andrew Leahey suggested that any reformed tax credit should simplify enrollment, embrace monthly payouts, and encourage state-level matching programs to maximize impact and make the policy politically salable.
Hawley's proposal, in fact, would allow families to receive the tax credits in regular installments rather than as a lump sum during tax season.
While Democrats largely have supported expanding the child tax credit, Hawley was one of just three Senate Republicans who voted this year for a failed bipartisan tax package that included an increased credit.
Axios reported that Thune hopes to use the expanded child tax credit proposal as part of negotiations for a second reconciliation package in 2025. The reconciliation process will allow Republicans to pass budget-related measures with a simple majority.