Economy

Gov. Walz Proposes Up to $3,000 in Child Tax Credit From Minnesota

Minnesota families with children could soon get thousands of dollars in tax breaks if a new proposal is approved. Gov. Tim Walz recently announced a $12 billion budget proposal with a series of measures focusing on kids and families, including sending a child tax credit from Minnesota.

Child Tax Credit From Minnesota: What Does The Proposal Say?

On Tuesday, the Minnesota governor announced a $12 billion package that he says would make Minnesota the “best” in the country for kids. The package includes a series of proposals that aims to reduce the cost of childcare for middle-class families, as well as child poverty.

Gov. Walz describes the package as the “largest investment in public education in state history.” The proposal includes sending a child tax credit from Minnesota that would offer $1,000 per child (maximum credit of $3,000) to lower-income families.

The child tax credit from Minnesota would lead to more than $1 billion in tax cuts in 2024-2025 and 2026-2027, and is expected to reduce child poverty by 25%, according to the Governor’s Office.

“As a former teacher, coach, and parent, I have made it my mission to make Minnesota the best state in the country for kids to grow up,” said Gov. Walz.

Other Measure Focusing On Kids And Families

Along with offering a child tax credit, Gov. Walz also proposed expanding the Child and Dependent Care Credit. This program is expected to bring down the healthcare costs for 100,000 Minnesota households.

The proposal calls for giving up to $4,000 a year for childcare costs to families making under $200,000. Families with two children could get up to $8,000, while families with three children could receive up to $10,500.

Walz’s budget proposal also calls for expanding the public pre-K seats for about 25,000 children. The proposal also calls for investing in early learning scholarships, as well as improving childcare access for families by boosting childcare assistance payment rates.

Walz’s budget proposal also aims to address the childcare shortage by raising staff compensation and supporting providers starting childcare businesses.

To ease the burden of rising costs on schools, Gov. Walz’s proposal calls for tying school funding to inflation from 2026. There is also a proposal to increase the general education funding formula next year by 4% next year and 2% the year after.

The proposal also calls for reducing the special education cross subsidy for school districts by 50%. Further, the proposal sets aside $389 million in 2023-2025 and $424 million in 2026-2027 to provide universal school meals to ensure no student goes hungry at school.

Moreover, the school funding proposal includes a measure to fund hiring more school counselors, nurses, psychologists, social workers, and chemical health counselors.

Gov. Walz also plans to create a new Department of Children, Youth, and Families to “provide comprehensive support for families.”

This article originally appeared on ValueWalk

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