Britt, Tuberville clinch updates to child care, SNAP in tax-cut bill, but hurdles remain

WASHINGTON — Alabama’s senators each got some of their priorities included in the U.S. Senate’s updates to President Donald Trump’s tax cut bill, but the sweeping legislation still faces obstacles before becoming law.

U.S. Sen. Katie Britt, R-Ala., a big advocate for expanding tax breaks for families with children, applauded the expansion of the child and dependent care tax credit included in the Senate Finance Committee’s portion of the megabill. The credit helps families with children who pay for child care. The maximum credit rate would be increased to 50% from 35% of qualifying expenses, adjusted for income. This enhancement was not included in the House version.

“An overwhelming majority of American families, 81% of parents, have called on Congress to address the affordability and accessibility of child care,” Britt said in a statement. “Senate Republicans responded by including critical updates to child care tax credits in the One Big Beautiful Bill Act.”

The Senate plan, unlike the House’s version, also enhances the dependent care assistance program, which provides employees the ability to set aside money from their paychecks tax-free to pay for child care. The provision increases the exclusion up to $7,500 annually. It’s currently at $5,000.

“I’m glad to see several of my pro-family priorities included in reconciliation—this a great step in the right direction,” Britt said. “I will continue fighting to get this over the finish line for hardworking families.”

The tax plan from Senate Republicans boosts another one of Britt’s child care priorities, which was also included in the House version. It increases the employer-provided child care tax credit to $500,000 from $150,000 and increases the cap of the percentage of child care expenses covered to 40% from 25%. It also includes a carve-out for small businesses to use the credit.

Separately, the nonrefundable child tax credit under the Senate plan would increase to $2,200 per child, while the House plan increased it to $2,500, only through 2028.

SNAP

Alabama’s senior Sen. Tommy Tuberville was previously concerned that the One Big Beautiful Bill Act’s provisions to partially shift some food aid costs to states would be hard for Alabama to afford.

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After Tuberville and other senators discussed a new “formula” for the Supplemental Nutrition Assistance Program provisions, the Senate Agriculture Committee reduced the amount states would have to pay as part of the committee’s portion of the bill, which was released last week.

The Senate proposed lessening the benefit costs that would be shifted to states for SNAP based on error payment rates compared with the House plan. Alabama’s most recent payment error rate was around 7%, so under the Senate plan, the state would be responsible for 5% of the benefit costs, which would be around $90 million per year.

States with payment error rates under 6% would not have to pay any benefit costs. While states with rates at or above 8% would have to pay 10% and states with rates at or greater than 10% would pay 15% of the benefit costs.

Alabama Arise estimates that the state will also have to pay an additional $35 million annually to cover increased SNAP administrative costs. Senate and House Republicans proposed to increase the states’ cost-share of administrative costs from 50% to 75%.

The Senate and House also call for expanding work requirements to receive SNAP benefits.

The agriculture text of the bill also boosts reference prices for farmers.

“Most of the savings that will come from SNAP is going to the farmers, which is good,” Tuberville told Alabama Daily News. “If we don’t save our farmers, we won’t need SNAP, we won’t have any food.”