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Secure Our Children Act

Implementation Timeline

Published February 2026

Based on Rev 2.5 of the Secure Our Children Act


Timeline Overview

SOCA implementation unfolds across three distinct phases over approximately 30 months from enactment, with ongoing operations thereafter. The phased approach allows IRS systems to scale progressively while ensuring families receive benefits as quickly as administratively feasible.

Implementation Phases at a Glance

Phase Timeframe Primary Objectives
Standup Months 1-6 Regulatory framework, system development, portal design
Launch Months 6-18 Birth Support Payments begin, monthly CTC advance begins, contribution collection starts
Stabilization Months 18-30 First full tax year reconciliation, automatic adjustment mechanism activates
Ongoing Operations Month 30+ Steady-state administration, triennial reviews, program optimization

Critical Milestones

Month Milestone
Month 0 Enactment
Month 6 Interim final regulations issued
Month 12 Birth Support Payments begin (January 1 following enactment)
Month 12 Child Security Contribution takes effect
Month 18 Monthly advance CTC payments begin (July 1 following enactment)
Month 24 First full tax year reconciliation complete
Month 30 First solvency ratio assessment with adjustment potential
Month 36 First GAO triennial review

Effective Date Architecture

Immediate Upon Enactment

The following provisions take effect immediately:

  • Family Security Stabilization Account establishment authority
  • Treasury rulemaking authority for Child Security Contribution collection
  • IRS rulemaking authority for child tax credit amendments
  • Non-filer portal development authorization
  • Outreach grant authorization ($250 million annually for five years)
  • Interagency coordination directives (Treasury, HHS, USDA, SSA)

Month 6 -- Regulations and Guidance

Deliverable Responsible Agency Dependencies
Interim final regulations (comprehensive) Treasury/IRS None
Child Security Contribution collection procedures Treasury/IRS None
Birth Support Payment verification protocols Treasury/IRS None
Non-filer portal specifications IRS None
Healthcare provider attestation standards Treasury/HHS None
State data-sharing agreement templates Treasury None

Month 12 -- First Program Launch

Provision Effective Date Dependencies
Birth Support Payments begin January 1 following enactment Regulations, verification systems
Child Security Contribution collection begins Taxable years after enactment Regulations, business guidance
Family Security Stabilization Account operational January 1 following enactment Account establishment
Non-filer portal live for Birth Support claims January 1 following enactment Portal development complete

Month 18 -- Full CTC Implementation

Provision Effective Date Dependencies
Monthly advance CTC payments begin July 1 following enactment Prior year return processing
Child tax credit amendments fully operational First full taxable year after enactment IRS systems update
Safe harbor provisions active First reconciliation cycle Regulations
Un/underbanked payment options fully deployed July 1 following enactment Bureau of Fiscal Service coordination

Year 2+ -- Stabilization and Ongoing

Timeframe Provision Dependencies
Month 24 First full tax year reconciliation complete Filing season completion
Month 24 First quarterly transparency report published Account operational data
Month 30 First annual solvency ratio assessment (October 1) 12+ months revenue data
Month 30 Automatic rate adjustment eligibility begins Two consecutive assessments outside 1.10-1.50 range
Month 36 First GAO triennial review 24+ months operational data

Sequencing Requirements

Dependency Chain

Enactment
    |
    +---> Rulemaking Initiation (Month 1)
    |         |
    |         +---> Child Security Contribution Rules
    |         |
    |         +---> Birth Support Payment Rules
    |         |
    |         +---> CTC Amendment Implementation Rules
    |
    +---> Family Security Stabilization Account Setup (Months 1-6)
    |         |
    |         +---> Initial Capitalization Structure
    |         |
    |         +---> Reserve Accounting Protocols
    |
    +---> IRS System Development (Months 1-12)
    |         |
    |         +---> Non-Filer Portal Development
    |         |
    |         +---> Monthly Payment Infrastructure
    |         |
    |         +---> Safe Harbor Calculation Logic
    |
    +---> Partner Coordination (Months 1-12)
              |
              +---> SSA Birth Registration Data Sharing
              |
              +---> State Vital Records Integration
              |
              +---> Bureau of Fiscal Service Payment Rails
              |
              +---> Healthcare Provider Attestation Systems

Critical Path Items

The following items are on the critical path -- delays cascade throughout implementation:

  1. Interim Final Regulations (Month 6): All program components depend on regulatory framework. Cannot launch Birth Support Payments or Child Security Contribution collection without finalized rules.

  2. Non-Filer Portal (Month 12): Reaching non-filing families for Birth Support Payments requires functional portal. Directly affects take-up rates among lowest-income families.

  3. SSA Birth Registration Data Sharing (Month 12): Automatic Birth Support Payment functionality depends on receiving timely birth data. Manual application-only model increases administrative burden and reduces take-up.

  4. Monthly Payment Infrastructure (Month 18): Cannot deliver advance CTC payments without IRS systems capable of monthly disbursement to millions of households.

  5. Solvency Ratio Calculation Systems (Month 24): Automatic rate adjustment mechanism requires accurate projections and account tracking. First assessment occurs October 1 of Year 2.

Parallel Workstreams

The following activities proceed concurrently to compress timeline:

Regulatory Track (Months 1-6): - Draft regulations with public comment - Coordinate with HHS on APSA interaction rules - Develop identity verification protocols

Technology Track (Months 1-12): - Non-filer portal development and testing - Monthly payment batch processing systems - Reconciliation and safe harbor calculation engines - Child Security Contribution collection integration

Partnership Track (Months 1-12): - SSA birth data sharing agreement - State vital records MOUs - Healthcare provider attestation network - Bureau of Fiscal Service payment coordination - Community organization outreach partnerships

Outreach Track (Months 3-18): - Multilingual materials development - Community organization training - Tribal government coordination - Non-filer identification using SNAP/WIC/Medicaid data


Institutional Standup

New Institutional Entities

SOCA creates one new institutional entity:

Family Security Stabilization Account

Attribute Specification
Legal status Treasury account (not independent entity)
Administration Secretary of the Treasury
Oversight Congressional oversight through existing committee structure
Reporting Quarterly transparency reports, annual reports to Congress
Staff requirement Integrated into existing IRS/Treasury operations

The Account does not require creation of a new agency, board, or commission. All administrative functions integrate into existing IRS and Treasury operations.

Existing Agency Responsibilities

Department of the Treasury

  • Child Security Contribution rulemaking and policy
  • Family Security Stabilization Account management
  • Solvency ratio calculation and automatic adjustment administration
  • State coordination for top-on programs
  • Quarterly and annual reporting

Internal Revenue Service

  • Child Security Contribution collection (as additional income tax)
  • Child tax credit administration (amendments to existing Section 24)
  • Birth Support Payment processing and verification
  • Non-filer portal development and operation
  • Monthly advance payment disbursement
  • Annual reconciliation and safe harbor administration
  • Outreach coordination

Bureau of Fiscal Service

  • Direct Express card program for un/underbanked recipients
  • Check payment production and distribution
  • Payment file processing

Social Security Administration

  • Birth registration data sharing
  • SSN issuance coordination with Birth Support Payment applications

Department of Health and Human Services

  • APSA coordination (ensuring credit/payment disregards function)
  • Outreach coordination through existing programs (WIC, Medicaid)

Department of Agriculture

  • SNAP recipient outreach coordination
  • Data sharing for non-filer identification (where authorized)

Staffing Estimates

Agency Estimated Additional FTEs Primary Functions
IRS 400-800 Portal operations, payment processing, verification, outreach
Treasury 50-100 Account management, policy, solvency monitoring
Bureau of Fiscal Service 50-100 Card program expansion, check processing

Note: Estimates assume IRS baseline systems exist for monthly payments from 2021 experience. Actual requirements depend on portal sophistication and automation level achieved.


Transition Provisions

Transition from Current Child Tax Credit

SOCA amendments to Section 24 take effect for taxable years beginning after December 31 of the year of enactment. This creates a clean break:

Final Year Under Current Law: - Tax year of enactment (filed in following spring) - Current $2,000 credit with partial refundability - Earned income requirements apply

First Year Under SOCA: - Tax year following enactment - New $3,600/$3,000 amounts by child age - Full refundability without earned income requirement - No income-based phase-out -- every qualifying child receives full credit - Monthly advances begin July 1

Mid-Year Start Accommodation: The statute authorizes transition rules for the mid-year July 1 commencement of monthly advances. Likely approach:

  1. July 1 payments begin at one-twelfth monthly rate
  2. Six monthly payments issued July-December of first year
  3. Standard twelve-month cycle begins January of second year
  4. First reconciliation covers partial-year advances

Safe Harbor Transition

The $2,000 per child safe harbor applies immediately to the first reconciliation cycle. Recipients who receive advances based on prior-year data but experience changed circumstances benefit from the safe harbor in their first SOCA filing.

Child Security Contribution Phase-In

The contribution takes effect immediately at the full 1.50% base rate and 3.00% kicker rate -- no phase-in period. This ensures the Family Security Stabilization Account receives full funding from launch.

Timing Coordination: - Contribution effective: Tax years beginning after December 31 of enactment year - First collection: April 15 following first applicable tax year (estimated payments may begin earlier) - First full-year revenue: Approximately 15 months post-enactment

Account Funding Gap: A gap exists between benefit payments (beginning Month 12-18) and contribution revenue (significant inflows beginning approximately Month 15). Options to address:

  1. Initial capitalization through general fund transfer, repaid from future contribution revenue
  2. Delayed benefit commencement until Account reaches reserve threshold
  3. Treasury borrowing authority secured against future Account receipts

The statute authorizes reserve management but does not specify initial capitalization mechanism. This may require clarification in appropriations or technical corrections.

Interaction with 2021 Advance CTC Experience

SOCA builds on but does not directly continue the 2021 expanded child tax credit experience. Key differences:

Element 2021 Temporary Expansion SOCA
Duration One year (2021 only) Permanent
Legal basis American Rescue Plan temporary amendment Permanent Section 24 amendment
Funding General revenue Child Security Contribution
Phase-out Income-based phase-out None -- universal benefit
Systems Improvised from existing infrastructure Purpose-built systems
Non-filer portal GetCTC.org (third-party with IRS cooperation) IRS-operated permanent portal

IRS retains institutional knowledge and some technical infrastructure from 2021, which may accelerate development. However, SOCA requires new systems for the Birth Support Payment, Child Security Contribution collection, and solvency management that did not exist in 2021.


Contingencies and Flexibility

Regulatory Flexibility

The Secretary has discretion in several areas to adapt implementation to practical realities:

  • Inflation indexing rounding rules
  • Non-filer portal data elements and procedures
  • Identity verification protocol calibration
  • Healthcare provider scope for Birth Support verification
  • Safe harbor criteria interpretation for "good faith" determinations

Implementation Date Flexibility

The statute uses "no later than" language for key deadlines, providing flexibility:

  • Birth Support Payments: "no later than January 1 of the first calendar year beginning after enactment" -- earlier launch possible if systems ready
  • Monthly CTC advances: "no later than July 1 of the first calendar year beginning after enactment" -- earlier launch possible
  • Regulations: "within 180 days" -- could be completed faster

Graduated Implementation Provisions

Section 7(d) provides explicit contingency for funding shortfalls:

Trigger: Projected funding insufficient for full benefits

Response Options: 1. Graduated benefits at uniform percentage (minimum 50%) 2. Priority to monthly payment regularity over amount 3. Birth Support Payments protected at 100% until funding falls below 75% CTC threshold

Notice Requirement: 90 days advance notice to Congress and public

Restoration: Automatic return to full benefits when funding permits, with retroactive payments for prior 12 months of shortfalls

Automatic Rate Adjustment Mechanism

The solvency-triggered rate adjustment provides self-correcting contingency:

Condition Response Timeline
Solvency ratio below 1.10 for 2 consecutive years Base and kicker rates increase 0.05pp January 1 following second year
Solvency ratio above 1.50 for 2 consecutive years Base and kicker rates decrease 0.05pp January 1 following second year
Ratio below 0.90 or above 2.00 for 2 years Secretary reports to Congress Within 60 days
Automatic adjustments hit bounds and ratio stays outside 1.10-1.50 for 3 years Secretary recommends legislative changes Within 60 days

Bounds: Base rate 1.10-1.90%; kicker rate 2.20-3.80%

This mechanism handles moderate funding fluctuations automatically while flagging extraordinary circumstances for Congressional attention.

Potential Bottlenecks and Mitigations

Bottleneck Risk Level Mitigation
IRS systems development capacity Medium-High Build on 2021 infrastructure; prioritize portal and payment systems
SSA birth data sharing agreement Medium Begin negotiations immediately; manual application backup exists
State vital records integration Medium Phased rollout by state; application-based backup
Non-filer outreach reach High Partner with existing programs (SNAP, WIC, Medicaid); community organization grants
Initial Account funding gap Medium Require technical corrections for initial capitalization if not addressed
Take-up among eligible non-filers High Aggressive outreach; simplified portal; in-person assistance

Sunset Protection

Section 11(b) establishes explicit no-sunset provision. The Act remains permanent unless repealed by subsequent Act of Congress, preventing automatic expiration and the associated uncertainty that affected the 2021 temporary expansion.


Implementation Monitoring

Quarterly Reporting Requirements

The Secretary publishes quarterly reports on:

  1. Total enrollments (CTC and Birth Support Payment separately)
  2. Payments distributed
  3. Reconciliation outcomes
  4. Take-up rates by demographic group and geography
  5. Overpayment and improper payment rates with root-cause analysis
  6. Time-to-payment metrics
  7. Portal usability metrics
  8. Account deposits and outlays (separately by benefit type)
  9. Account balance and reserve status
  10. Solvency ratio and pending adjustments

Annual Congressional Reports

The Secretary, with HHS and Census, submits annual reports on:

  1. Child poverty rates
  2. Food insufficiency measures
  3. Take-up rates (separately by program component)
  4. Payment integrity metrics
  5. Child Security Contribution revenues and projections
  6. Solvency outlook

GAO Triennial Reviews

Every three years, the Comptroller General reports on:

  1. Program efficacy against stated objectives
  2. Payment integrity and error rates
  3. Administrative burden on recipients
  4. Automatic rate adjustment mechanism performance
  5. Recommendations for legislative or administrative improvements

Extended Graduated Implementation Review

If graduated implementation under Section 7(d) continues for more than 24 consecutive months, the Comptroller General conducts a comprehensive review of Child Security Contribution rates and recommends legislative solutions.


Revision History

Revision 2.5 (Current) - Brought into compliance with APAI Document Production Standards Rev 1.6 - Updated header structure, footer, and revision history placement

Revision 2.4 - Updated to reflect elimination of income-based phase-out, recalibrated contribution rates, and universal benefit design - Simplified transition provisions (no phase-out thresholds to transition) - Renamed from "Implementation Architecture" to "Implementation Timeline" per APAI Document Production Standards

Revision 2.0 - Initial publication

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Prepared by Albert Ramos for The American Policy Architecture Institute