[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 3770 Introduced in Senate (IS)]
<DOC>
119th CONGRESS
2d Session
S. 3770
To amend the Internal Revenue Code of 1986 to make new child payments,
to provide for American Dream Accounts, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
February 3, 2026
Mr. Gallego introduced the following bill; which was read twice and
referred to the Committee on Finance
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to make new child payments,
to provide for American Dream Accounts, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Strong Start Act''.
SEC. 2. NEW CHILD PAYMENTS.
(a) In General.--Subchapter B of chapter 65 of the Internal Revenue
Code of 1986 is amended by adding at the end the following new section:
``SEC. 6436. NEW CHILD PAYMENTS.
``(a) In General.--An eligible taxpayer shall be allowed a credit
in the amount determined under subsection (b) with respect to each
eligible new child of the eligible taxpayer which shall be paid by the
Secretary not later than 30 days after the date in which the eligible
taxpayer files a claim for such credit.
``(b) Amount.--
``(1) In general.--The amount of the credit under this
subsection with respect to each eligible new child shall be
$3,000.
``(2) Inflation adjustments.--
``(A) In general.--In the case of a taxable year
beginning in a calendar year after 2025, the $3,000
dollar amount in paragraph (1) shall be increased by an
amount equal to--
``(i) such dollar amount, multiplied by
``(ii) the cost-of-living adjustment
determined under section 1(f)(3) for the
calendar year in which the taxable year begins,
determined by substituting `calendar year 2024'
for `calendar year 2016' in subparagraph
(A)(ii) thereof.
``(B) Rounding.--If any amount after adjustment
under the preceding sentence is not a multiple of $10,
such amount shall be rounded to the next lower multiple
of $10.
``(c) Definitions.--For purposes of this section--
``(1) Eligible taxpayer.--
``(A) In general.--The term `eligible taxpayer'
means, with respect to any eligible new child, any
taxpayer who--
``(i) is the parent (within the meaning of
section 152(c)(4)) of the eligible new child,
and
``(ii) who has the same principal place of
abode as the eligible new child for the period
beginning on the date described in paragraph
(2)(A)(i) and ending on the date on which a
claim for the credit under this section is
made.
``(B) More than 1 parent claiming eligible new
child.--If the parents claiming any eligible new child
do not file a joint claim for the credit under this
section together, such child shall be treated as the
qualifying child of--
``(i) the parent with whom the child
resided for the longest period of time
described in subparagraph (A)(ii), or
``(ii) if the child resides with both
parents for the same amount of time during such
period, the parent with the highest adjusted
gross income for the preceding taxable year.
``(2) Eligible new child.--
``(A) In general.--The term `eligible new child'
means any individual who--
``(i)(I) was born to the eligible taxpayer
(including through a surrogacy arrangement)
after the date of the enactment of this
section,
``(II) has not attained the age of 3 and
was adopted by the eligible taxpayer after the
date of the enactment of this section, or
``(III) who has not attained the age of 1
and is placed with the eligible taxpayer by an
authorized placement agency or by judgment,
decree, or other order of any court of
competent jurisdiction after the date of the
enactment of this section,
``(ii) is a citizen or national of the
United States, and
``(iii) who has been issued a social
security number (as defined in section
24(h)(7), determined by substituting `of the
claim for a credit under section 6436' for `of
such return' in clause (ii) thereof).
``(B) Exception.--Such term shall not include any
individual with respect to whom a credit has been
previously allowed under this section to any other
person.
``(d) Taxpayer Identification Requirement.--No credit shall be
allowed under this section unless the eligible taxpayer has included
with the claim for a credit under this section the taxpayer's
identification number and such identification number was issued before
the date the eligible new child was born or adopted by the taxpayer.
``(e) Exception From Reduction or Offset.--Any payment made to any
individual under this section shall not be--
``(1) subject to reduction or offset pursuant to subsection
(c), (d), (e), or (f) of section 6402 or any similar authority
permitting offset, or
``(2) reduced or offset by other assessed Federal taxes
that would otherwise be subject to levy or collection.
``(f) Restrictions on Taxpayers Who Improperly Claimed Credit or
Improperly Received Payment.--
``(1) In general.--No credit shall be allowed under this
section for any taxable year in the disallowance period.
``(2) Disallowance period.--For purposes of paragraph (1),
the disallowance period is--
``(A) the period of 120 calendar months after the
most recent calendar month for which there was a final
determination that the taxpayer's claim of credit under
this section was due to fraud, and
``(B) the period of 24 calendar months after the
most recent calendar month for which there was a final
determination that the taxpayer's claim of credit under
this section was due to reckless or intentional
disregard of rules and regulations (but not due to
fraud).
``(g) Regulations.--The Secretary shall issue such regulations or
other guidance as the Secretary determines necessary or appropriate to
carry out the purposes of this section, including regulations or
guidance with respect to the time and manner for filing a claim for the
credit allowed under this section.''.
(b) Clerical Amendment.--The table of sections for subchapter B of
chapter 65 of the Internal Revenue Code of 1986 is amended by adding at
the end the following new item:
``Sec. 6436. New child payments.''.
SEC. 3. AMERICAN DREAM ACCOUNTS.
(a) Trump Accounts Renamed American Dream Accounts.--
(1) In general.--Each of the following provisions of the
Internal Revenue Code of 1986, as amended by Public Law 119-21,
is amended by striking ``Trump account'' each place it appears
and inserting ``American Dream account'':
(A) Section 530A.
(B) Section 128.
(C) Section 139J.
(D) Section 6434.
(2) Conforming amendments.--
(A) Section 530A(h)(4) of the Internal Revenue Code
of 1986, as added by Public Law 119-21, is amended by
striking ``Trump Accounts'' and inserting ``American
Dream accounts''.
(B) Section 128(c) of such Code, as added by Public
Law 119-21, is amended by striking ``Trump accounts''
and inserting ``American Dream accounts''.
(C) Section 6692(a)(2)(G) of such Code, as added by
Public Law 119-21, is amended by striking ``Trump
accounts'' and inserting ``American Dream accounts''.
(b) Permanent Extension and Indexing of Initial Government Seed
Contribution Program.--
(1) Extension.--Section 6434(c)(1) of the Internal Revenue
Code of 1986, as added by Public Law 119-21, is amended by
striking ``, and before January 1, 2029''.
(2) Inflation adjustment.--Section 6434 of such Code, as
added by Public Law 119-21, is amended by adding at the end the
following new subsection:
``(j) Inflation Adjustment.--
``(1) In general.--In the case of any taxable year
beginning after 2026, the $1,000 amount in subsections (a)
shall be increased by an amount equal to--
``(A) such dollar amount, multiplied by
``(B) the cost-of-living adjustment determined
under section 1(f)(3) for the calendar year in which
the taxable year begins, determined by substituting
`calendar year 2025' for `calendar year 2016' in
subparagraph (A)(ii) thereof.
``(2) Rounding.--Any increase determined under paragraph
(1) shall be rounded to the next nearest multiple of $100.''.
(c) Additional Government Contributions for Eligible Individuals.--
(1) In general.--Subchapter B of chapter 65 of the Internal
Revenue Code of 1986, as amended by Public Law 119-21, is
amended by inserting after section 6434 the following new
section:
``SEC. 6434A. ADDITIONAL AMERICAN DREAM ACCOUNT CONTRIBUTIONS.
``(a) In General.--Each eligible taxpayer shall be treated as
making a payment against the tax imposed by subtitle A for the taxable
year in an amount equal to the amount determined under subsection (b)
with respect to each qualifying child of the taxpayer.
``(b) Amount.--
``(1) In general.--The amount determined under this
subsection with respect to any qualifying child is--
``(A) in the case of an eligible taxpayer who is an
EITC eligible taxpayer for the taxable year, the sum
of--
``(i) $750, plus
``(ii) the amount contributions during the
taxable year (not to exceed $250) made to the
American Dream account with respect to which
the qualifying child is the account
beneficiary, and
``(B) in the case of any other eligible taxpayer,
$500.
``(2) Inflation adjustment.--
``(A) In general.--In the case of any taxable year
beginning after 2026, the $750 amount in paragraph
(1)(A)(i) and the $500 amount in paragraph (1)(B) shall
each be increased by an amount equal to--
``(i) such dollar amount, multiplied by
``(ii) the cost-of-living adjustment
determined under section 1(f)(3) for the
calendar year in which the taxable year begins,
determined by substituting `calendar year 2025'
for `calendar year 2016' in subparagraph
(A)(ii) thereof.
``(B) Rounding.--Any increase determined under
paragraph (1) shall be rounded to the next nearest
multiple of $10.
``(c) Refund of Payment.--The amount treated as a payment under
subsection (a) with respect to any qualifying child or the taxpayer
shall be paid by the Secretary to the American Dream account with
respect to which such qualifying child is the account beneficiary.
``(d) Definitions and Other Rules.--For purposes of this section--
``(1) Eligible taxpayer.--The term `eligible taxpayer'
means, with respect to any taxable year, any taxpayer--
``(A) who has a dependent who is a qualifying
child, and
``(B) whose adjusted gross income for the taxable
year does not exceed $75,000 ($150,000 in the case of a
joint return).
``(2) EITC eligible taxpayer.--The term `EITC eligible
taxpayer' means, with respect to any taxable year, an eligible
taxpayer who is allowed a credit under section 32 for such
taxable year.
``(3) Qualifying child.--The term `qualifying child' means,
with respect to any taxable year, any individual who--
``(A) is a qualifying child (as defined in section
152(c)) who has not attained the age of 18,
``(B) is a United States citizen, and
``(C) is the account beneficiary of an American
Dream account.
``(4) Other rules.--Rules similar to the rules of
subsections (e), (f), (h), and (i) of section 6434 shall apply
for purposes of this section.''.
(2) Application with contribution limits.--Section
530A(c)(2)(B)(iii) of such Code, as added by Public Law 119-21,
is amended by inserting ``or 6434A'' after ``6434''.
(3) Treatment of distributions.--Section 530A(d)(2)(B) of
such Code, as added by Public Law 119-21, is amended by
inserting ``or 6434A'' after ``6434''.
(4) Clerical amendment.--The table of sections for
subchapter B of chapter 65 of such Code, as amended by Public
Law 119-21, is amended by inserting after the item relating to
section 6434 the following new item:
``Sec. 6434A. Additional American Dream account contributions.''.
(d) Additional Conforming Amendments.--
(1) The heading of part IX of subchapter F of chapter 1 of
the Internal Revenue Code of 1986, as added by Public Law 119-
21, is amended by striking ``trump accounts'' and inserting
``american dream accounts''.
(2) The item relating to section 530A in the table of parts
for subchapter F of chapter 1 of such Code, as added by Public
Law 119-21, is amended by striking ``Trump accounts'' and
inserting ``American Dream accounts''.
(3) The heading of section 530A of the Internal Revenue
Code of 1986, as added by Public Law 119-21, is amended by
striking ``trump accounts'' and inserting ``american dream
accounts''.
(4) The item relating to section 530A in the table of
sections for part IX of subchapter F of chapter 1 of such Code,
as added by Public Law 119-21, is amended by striking ``Trump
accounts'' and inserting ``American Dream accounts''.
(5) The heading of section 530A(b) of such Code, as added
by Public Law 119-21, is amended by striking ``Trump Account''
and inserting ``American Dream Account''.
(6) The heading of section 128 of such Code, as added by
Public Law 119-21, is amended by striking ``trump accounts''
and inserting ``american dream accounts''.
(7) The item relating to section 128 in the table of
sections for part III of subchapter B of chapter 1 of such
Code, as added by Public Law 119-21, is amended by striking
``Trump accounts'' and inserting ``American Dream accounts''.
(8) The heading of section 139J of such Code, as added by
Public Law 119-21, is amended by striking ``trump accounts''
and inserting ``american dream accounts''.
(9) The item relating to section 139J in the table of
sections for part III of subchapter B of chapter 1 of such
Code, as added by Public Law 119-21, is amended by striking
``Trump accounts'' and inserting ``American Dream accounts''.
(10) The heading of section 6434 of such Code, as added by
Public Law 119-21, is amended by striking ``trump account
contribution pilot program'' and inserting ``american dream
account seed contributions''.
(11) The item relating to section 6434 in the table of
sections for subchapter B of chapter 65 of such Code, as added
by Public Law 119-21, is amended by striking ``Trump account
contribution pilot program'' and inserting ``American Dream
account seed contributions''.
(12) The heading of section 6659 of such Code, as added by
Public Law 119-21, is amended by striking ``trump account
contribution pilot program'' and inserting ``american dream
account seed contribution''.
(13) The item relating to section 128 in the table of
sections for part IX of subchapter F of chapter 1 of such Code,
as added by Public Law 119-21, is amended by striking ``Trump
account contribution pilot program'' and inserting ``American
Dream account seed contribution''.
(e) Coordination With Other Means-Tested Programs.--
(1) Account funds disregarded for purposes of certain other
means-tested federal programs.--Notwithstanding any other
provision of Federal law that requires consideration of 1 or
more financial circumstances of an individual, for the purpose
of determining eligibility to receive, or the amount of, any
assistance or benefit authorized by such provision to be
provided to or for the benefit of such individual, any amount
(including earnings thereon) in an American Dream account
(within the meaning of section 530A of the Internal Revenue
Code of 1986) of such individual and any contributions to the
American Dream account of the individual shall be disregarded
for such purpose with respect to any period before the first
day of the calendar year in which such individual attains the
age of 18, except that, in the case of the supplemental
security income program under title XVI of the Social Security
Act (42 U.S.C. 1381 et seq.) any amount (including such
earnings) in such American Dream account shall be considered a
resource of the designated beneficiary to the extent that such
amount exceeds $100,000.
(2) Suspension of ssi benefits during periods of excessive
account funds.--
(A) In general.--The benefits of an individual
under the supplemental security income program under
title XVI of the Social Security Act shall not be
terminated, but shall be suspended, by reason of excess
resources of the individual attributable to an amount
in the American Dream account (within the meaning of
section 530A of the Internal Revenue Code of 1986) of
the individual not disregarded under subsection (a).
(B) No impact on medicaid eligibility.--An
individual who would be receiving payment of such
supplemental security income benefits but for the
application of paragraph (1) shall be treated for
purposes of title XIX of the Social Security Act (42
U.S.C. 1396 et seq.) as if the individual continued to
be receiving payment of such benefits.
(f) Automatic Enrollment of Eligible Individuals.--Not later than
one year after the date of the enactment of this Act, the Secretary of
the Treasury (or the Secretary's delegate) shall establish a program
to--
(1) collect information on whether an individual meets the
requirements of subparagraphs (A) and (B) of section 530A(b)(2)
of the Internal Revenue Code of 1986, and
(2) automatically establish American Dream accounts (as
defined in section 530A of such Code) on behalf of such
individual if, based on such information, the Secretary
determines such individual is an eligible individual (as
defined in section 530A(b)(2)).
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