S. 3770

119 S3770 IS: Strong Start Act
 U.S. Senate
 2026-02-03
 text/xml
 EN
 Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
 II  119th CONGRESS  2d Session  S. 3770  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.
1.
Short title
This Act may be cited as the   Strong Start Act  .
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:
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.
  .
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:
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)).