U.S. Senator Katie Britt Votes to Deliver Largest Tax Cut in American History, Secures Critical Child Care Tax Relief and Investments in Alabama

July 1, 2025 - WASHINGTON, D.C. - U.S. Senator Katie Britt (R-Ala.) today voted to deliver the largest tax cut in history for working-class Americans. The Senate's reconciliation bill, which passed by a vote of 51-50, now heads to the U.S. House of Representatives before it's sent to President Trump's desk to be signed into law.

"This pro-family bill delivers on the mandate the American people gave us on November 5, with huge wins that fulfill much of President Trump's and Senate Republicans' America First policy agenda," said Senator Britt.

"With this bill, we are preventing the largest tax hike in American history-amounting to nearly $2,200 saved for the average Alabama household. Republicans are seizing a generational opportunity to usher in a new era of prosperity, one in which hardworking Americans can earn more, spend less, and live out their American Dream," she continued.

The bill also provides more than $600 billion of new tax relief specifically targeted to hardworking Americans. Importantly, the Senate version of the reconciliation bill strengthens and preserves entitlement programs, like Medicaid. As a non-expansion state, Alabama's Medicaid provider tax will remain protected at 6%, the current rate. The Senate bill also includes important rural hospital funding, advocated for by Senator Britt, that will provide Alabama at least $500 million in additional funding over the next five fiscal years.

Senator Britt, in addition to additional pro-worker provisions of the bill like no taxes on tips and overtime, also directly secured permanent child care tax relief for the first time in nearly 25 years. The Child and Dependent Care Tax Credit (CDCTC) and the Employer-Provided Child Care Tax Credit (45F) have not been permanently updated since 2001. Since then, child care costs have increased by 263%. The Dependent Care Assistance Program (DCAP) has not been updated since 1986.

"I'm proud to have been the tip of the spear in updating critical child care provisions-some of which hadn't been updated since 1986. The affordability and accessibility of child care are barriers for parents across our state and nation. The Republican Party is the party of families, parents, and hardworking Americans. Because of this legislation, families will be able to keep more of their money and will be incentivized to be part of the solution," Senator Britt stated.

Senator Britt also advocated for $60 million in funding for the 1890 Scholars Program in the bill-a $20 million increase from the 2018 Farm Bill. Alabama is home to the most historically black colleges and universities (HBCUs) in the country. She is proud to support our 1890 institutions that promote career opportunities for students in critical fields like agriculture, food science, and natural resources.

Additionally, the Senate's reconciliation bill includes $130.3 billion in border and DHS-related funding. As Chairman of the Homeland Security Subcommittee on Appropriations and sponsor of the WALL Act, she was particularly influential in her support of funding to complete the U.S. southern border wall.

Senator Britt was critical in securing significant investments at NASA's Marshall Space Flight Center. Funding in the Senate reconciliation bill includes $4.1 billion to fuel two Space Launch System (SLS) rockets for the Artemis IV and V missions, and $1 billion for infrastructure improvements at manned spaceflight centers, including $100 million for Marshall Space Flight Center in Huntsville. She also helped secure the $25 million for the Golden Dome included in the bill that Redstone Arsenal will play a significant role in supporting.

The Senator also advocated for the $105 million for the Feral Swine Eradication Program included in the reconciliation bill, pushed for the inclusion of reference price and base acre increases for Alabama's more than 62,000 hardworking farmers, and supported raising the threshold on the death tax, preventing the tax exemption from being cut in half and hitting the more than 37,000 family-owned farms in Alabama.

Senator Britt remains strongly supportive of reining in the Consumer Finance Protection Bureau (CFPB)-the Senate reconciliation bill would lower the funding cap by almost half.

Senator Britt also successfully advocated to include: raising the cap for Alabama to receive royalties from offshore oil and gas production in the Gulf of America, incentivizing the Bureau of Land Management to issue new coal leases, and expanding the 45X energy tax credit to include met coal.

"This is historic legislation that will provide much-needed relief to Americans at the grocery store and the gas pump. While this bill is an incredible step toward achieving President Trump's agenda, we won't stop fighting to secure our border, strengthen our warfighters, and unleash American energy. I'm proud to have delivered for Alabamians and Americans," Senator Britt concluded.