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A New Deal for Youth Endorses the Young Adult Tax Credit Act

FOR IMMEDIATE RELEASEContact: Chloe Dewberry, (248)376-7657, [email protected]

Congressman Morgan McGarvey (KY-03) and Congresswoman Bonnie Watson Coleman (NJ-12) Introduced the Legislation, Which Creates a Universal $500 Monthly Payment for All 18 – 24-Year-Olds in the U.S.

March 6, 2024, WASHINGTON, D.C.—Youth activists from A New Deal for Youth, an initiative supported by the Center for Law and Social Policy (CLASP), endorsed the Young Adult Tax Credit Act, which was introduced by Congressman McGarvey (KY-03) and Congresswoman Bonnie Watson Coleman (NJ-12). This legislation creates a universal $500 monthly payment, indexed to inflation, for all 18–24-year-olds in the United States, including its territories. This cash transfer would allow young people to access capital earlier in their lives, better afford necessities, or otherwise build their lives and be more integrated into the tax system.

“New Deal for Youth is proud to have worked with Representative McGarvey on drafting the Young Adult Tax Credit Act,” said Rebecca Do, A New Deal for Youth Changemaker. “We are excited that this bill is being introduced. Now, we need other elected officials to listen to youth voices and pass this landmark piece of legislation. I would probably use [the extra $500 each month] to either pay my rent and groceries, or use it for things that keep me comfortable and living.”

The Young Adult Tax Credit Act is designed based on lessons learned from a Louisville guaranteed income pilot and was developed in consultation with young people, including New Deal for Youth Changemakers. The bill would:

  • Create an advanced, refundable tax credit, disbursed monthly and indexed to annual inflation adjustments;
  • Establish eligibility for 18 – 24-year-olds in the United States who have a social security number (US citizen) OR possess a Tax Identification Number (US immigrants, including DACA recipients and undocumented immigrants); and,
  • Direct the IRS to conduct an outreach campaign, prioritizing people that are less likely to file taxes or have bank accounts.

“Our social safety net rightfully has programs for children and seniors, but it doesn’t address the prevalence of young adult poverty. Twenty-two percent of 18-24-year-olds in Kentucky live below the poverty line, and we must do something to help,” said Rep. McGarvey. “Louisville recently conducted a successful pilot program directing payments to young adults so they keep moving ahead instead of falling behind. That’s why I’m proud to introduce the Young Adult Tax Credit and establish a national program that invests in our upcoming generations, allowing them to thrive in and contribute to society for the rest of their lives. This $500 monthly tax credit means someone can make a car payment, buy groceries, pay rent, or afford childcare. I’m excited to work with my colleagues in Congress to move this across the finish line and start lifting young people out of poverty.”

The Young Adult Tax Credit has the potential to dramatically reduce poverty for young people, especially for young adults of color. As stated in a newly-published CLASP publication titled “Two New Guaranteed Income Bills Bring Different Strategies to Reducing Young Adult Poverty,” “According to the Official Poverty Measure, 15.3 percent of young adults ages 18 through 24 were living under the Federal Poverty Line as of 2022. When using the Supplemental Poverty Measure (SPM), the rate increases to 17.7 percent of all young people; but 22.5 percent of young people of color lived in poverty as measured by the SPM. The expanded CTC that was temporarily implemented in tax year 2021 cut child poverty nearly in half, especially benefitting Black and Latino kids.”

“It’s a little known fact that young adults have one of the highest poverty rates of any demographic group in the country,” said Dr. Nia West-Bey, Director of Youth Policy at CLASP. “As recently as last summer more than half of young people reported some difficulty meeting their basic living expenses. These are policy choices, and the Young Adult Tax Credit Act represents a huge step forward in our commitment as a nation to advancing economic justice for young adults.”

“A New Deal for Youth envisions a world where the economy is designed to uplift all young people and abolish structural barriers,” wrote Makayla McDonald, A New Deal for Youth Changemaker, and Ashley Burnside, CLASP Senior Policy Analyst, Income and Work Supports. “[The Young Adult Tax Credit Act] would accomplish this by providing young people with unrestricted investments. CLASP and A New Deal for Youth urge Congress to pass [the bill] to invest in and support young people.”

The one-pager can be found here.

The full bill text can be found here


About A New Deal for Youth

A New Deal for Youth (ND4Y) is a youth-led, youth-centered effort advocating for the creation of new systems, policies, investments and structures that reimagine life for young people in America. ND4Y serves youth who have been left behind — the disconnected and the disenfranchised, marginalized, misrepresented, and silenced, young people who may not use their voice as much as they would like to. We center Indigenous and Black communities and youth of color; LGBTQIA+ youth; disabled folks; all immigrant communities, including undocumented young people; young parents; transition age youth; and foster care and former foster care youth. We recognize the intersections of these identities, including intersections with gender and gender identity.

Learn more at

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