The "Family First Act" proposes substantial changes to the Internal Revenue Code, primarily focusing on family-related tax benefits. It permanently expands the Child Tax Credit (CTC), increasing the base credit amount to $4,200 for qualifying children under age six and $3,000 for other qualifying children under age 17. This enhanced credit becomes fully refundable and is subject to a phase-out for higher-income taxpayers, beginning at $400,000 for joint filers and $200,000 for others.

A new Tax Credit for Pregnant Mothers is introduced, providing $2,800 for an eligible taxpayer with a qualifying unborn child. To qualify, the unborn child must have a gestational age of 20 weeks or greater, as certified by a physician. This credit is also refundable and includes provisions for cases of involuntary fetal death or death due to life-saving maternal treatment, but explicitly excludes cases of induced abortion not for medical necessity.

To help finance these new and expanded credits, the bill includes several offsetting measures. It simplifies and adjusts the Earned Income Tax Credit (EITC) for taxpayers with children, generally increasing maximum credit amounts for those with one or more qualifying children. Furthermore, the bill eliminates the additional exemption for dependents and repeals the Head of Household filing status, streamlining the tax code for many taxpayers.

Other significant changes include the modification of the Credit for Expenses for Household and Dependent Care Services, which will no longer apply to children under age 17, focusing instead on older or incapacitated dependents. Finally, the bill denies the deduction for state and local taxes (SALT) for individuals, with exceptions for foreign taxes and those incurred in a trade or business. All these amendments are slated to take effect for taxable years beginning after December 31, 2025.