Congress offers families $250 per child for school supplies—no income limit.

What it does

This bill creates a new federal tax credit of up to $250 per child per year for families who buy school supplies like notebooks, calculators, backpacks, and uniforms for children under 17. The credit is refundable, meaning families can claim it even if they owe no income tax, and it applies to children attending public, private, or homeschools.

Why we flagged it

The bill's sole operative mechanism is a direct refundable tax credit for school supply expenses, functioning as a targeted subsidy to reduce the cost burden on families with school-age children.

What the text implies

• Refundable structure means the credit functions as a direct cash payment to families, not merely a tax reduction—families earning below the tax threshold receive the full $250 per child as a government payment.
• No income-phase-out or income-limit language in the bill text; credit appears available to all taxpayers with qualifying children regardless of income level, potentially benefiting higher-income families as well.
• Definition of 'qualified school supply expenses' is broad and includes items like lunch boxes and school uniforms, which may be subject to interpretation disputes or abuse (e.g., claiming non-educational items as uniforms).
• Credit is per-child and determined separately for each qualifying dependent, so families with multiple school-age children receive $250 × number of children, with no aggregate cap stated in the bill.

Section numbers refer to the bill text the analysis read — linked under Primary records below.

Who it affects

Families with school-age children receive a direct, refundable tax credit reducing their out-of-pocket costs for necessary school supplies. The refundable structure ensures low-income families benefit even if they owe no federal income tax, making it a genuine subsidy rather than a tax break only for the wealthy.

Who stands to gain

• families with school-age children
• school supply retailers (indirect benefit from increased demand)

Named in the bill

Internal Revenue Code of 1986, Section 36C (new tax credit), Section 36B (Affordable Care Act premium tax credit—cited for conforming amendments), Section 6211(b)(4)(A) (IRS notice requirements), Section 1324(b)(2) of title 31 (Treasury Department payment authority)

Where it stands

• Sep 15, 2026 — Introduced · Congress.gov: “Introduced in House”
• Sep 15, 2026 — Referred to House Committee on Ways and Means · Congress.gov: “Referred to the House Committee on Ways and Means”

Dates and quoted wording are Congress.gov's action record; the timeline shows status changes, not every procedural step.