Aderholt Praises Inclusion of Refundable Adoption Tax Credit in House Budget Package
Adoption tax credit has been added to the “One Big Beautiful Bill”
Congressman Robert Aderholt (R-AL4), Co-Chair of the Congressional Adoption Caucus and Chair of the House Values Action Team, announced a major legislative development on Tuesday: the inclusion of a refundable Adoption Tax Credit in the House Ways and Means Committee’s reconciliation framework, known as the “One Big Beautiful Bill.”
“One of our top priorities in reconciliation this year was providing families with a refundable Adoption Tax Credit,” said Aderholt. “I’m pleased to report that the Committee has included this much-needed provision in the draft package—a refundable amount of up to $5,000 for adoption expenses, indexed for inflation.”
Aderholt, a longtime advocate for adoption policy, led a bipartisan letter to committee leaders in March urging the inclusion of the refundable credit. Under current law, the nonrefundable nature of the tax credit limits its benefit to families with higher tax liabilities, making it difficult for many working- and middle-class families to access its full value.
“For too long, the nonrefundable nature of the credit has limited its reach,” Aderholt explained. “Refundability means more children can be welcomed into permanent homes, and more families can say yes to adoption without being held back by financial constraints. I’m proud to see Republicans put families first in this year’s Budget Reconciliation.”
The refundable credit provision echoes the goals of H.R. 2833, the Adoption Tax Credit Refundability Act of 2025, which Aderholt co-sponsored. The bill aims to make adoption more accessible by offering financial relief to families regardless of income or tax liability.
“As Adoption Caucus Chairman and a longtime advocate for children and families, this is personal,” Aderholt added. “Making adoption more affordable is both morally right and fiscally responsible. Every child who moves from foster care into a forever home saves taxpayer dollars and gains a stable, loving environment.”
A coalition of national advocacy groups has voiced strong support for the measure, including National Right to Life, Concerned Women for America, Ethics & Religious Liberty Commission, March for Life Action, Susan B. Anthony Pro-Life America, Students for Life Action, the U.S. Conference of Catholic Bishops’ Committee on Laity, Marriage, Family Life and Youth, Americans United for Life, and Lifeline Children’s Services.
Although the reconciliation package is still in draft form and has not yet passed, Aderholt remains committed to protecting the refundability language as the One Big Beautiful Bill works its way through the legislative process.
