Baby bonus payments

(a) Baby bonus (1) In general Beginning January 1st, 2026, and subject to paragraph (2), the Commissioner shall pay, in relation to each qualifying child, a baby bonus to one or more eligible parents of such child in accordance with this section. In the case of multiple qualifying children from a single pregnancy, a separate payment shall be made for each qualifying child. (2) Application required In order to receive a payment under this section, an eligible parent (or an authorized representative described in subsection (c)(5)) of a qualifying child shall submit an application in accordance with subsection (c). Such application shall be submitted not later than 1 year after— (A) the birth of the qualifying child in relation to which such application is submitted; or (B) in the case of the death of a fetus or qualifying child as described in subsection (e), the date of such death. (3) Amount (A) In general The amount of a baby bonus shall be— (i) for calendar year 2026, $2,000; and (ii) for any calendar year after such year— (I) the amount in clause (i), multiplied by (II) the cost-of-living adjustment determined under section 1(f)(3) of the Internal Revenue Code of 1986 for the calendar year in which the taxable year begins, determined by substituting 2026 for 2016 in subparagraph (A)(ii) thereof. (B) Rounding If any amount determined under subparagraph (A) is not a multiple of $1, such increase shall be rounded to the next lower multiple of $1. (b) Payment (1) Date of payment Payment shall be made— (A) if no objection is made as described in paragraph (3)(A), during the 6-business day period immediately following the 21-day period beginning on the date on which notice is provided pursuant to such paragraph; (B) if such an objection is raised, during the 6-business day period following the date on which the Commissioner determines which eligible parent is entitled to such money; or (C) if the Commissioner determines pursuant to paragraph (3)(A) that notice is not necessary, during the 10-business day period beginning on the date on which the application is approved under subsection (c)(1). (2) Advanced payment An eligible parent who has an approved application under subsection (c)(2) is eligible to receive a baby bonus up to 60 days before the expected due date. (3) Consideration of custody (A) Notice requirement The Commissioner shall provide notice to all known eligible parents when an application for child payments is approved under subsection (c)(1) providing 21 days for any objections before payment is made. Notwithstanding the prior sentence, the Commissioner may elect not to provide such notice if the Commissioner determines that the applicant has produced clear evidence that providing such notice will not result in an individual other than the eligible parent receiving the baby bonus payment. (B) Child payments Where multiple eligible parents submit applications for the same qualifying child, payment shall be made to the eligible parent who— (i) has primary or sole physical custody, as evidenced by a court order; (ii) the child primarily resides with, in the absence of such a court order; or (iii) if neither clause (i) or (ii) can be determined, the first approved applicant. (C) Joint custody exception Notwithstanding subparagraph (B), where parents have a court order establishing equal shared physical custody, either parent may request that the payment be divided equally. The Commissioner shall so divide the payment unless the other parent declines, in writing, their share of the payment within 21 days of notification. (D) Dispute resolution In cases in which a dispute exists as to which eligible parent should receive the payment pursuant to subparagraph (B) and there is no applicable court order, the Commissioner may require submission of such additional documentation as the Commissioner determines appropriate before making payment. (E) Changed circumstances Notwithstanding subsection (a)(1), the Commissioner may transfer payment to a different eligible parent (or if payment has already been made, may issue payment to a different eligible parent and attempt to recover the original payment in accordance with subsection (e)) upon receiving documentation showing that— (i) during the 1-year period beginning on the date on which the child is born— (I) custody arrangements were modified by court order subsequent to the initial application; or (II) the original recipient died or became legally incapacitated; (ii) the original application contained fraudulent information; and (iii) in the case of payment made to a prospective adoptive parent described in section 4(4)(C)(ii)(II), the adoption is not completed within 60 days of the birth of the qualifying child. (c) Application (1) Approval process Not later than 14 days after the receipt of an application, the Commissioner shall verify that the applicant meets the requirements established under this section. The application of any applicant so verified shall be considered approved. (2) Application Subject to paragraph (3), an eligible parent (or an authorized representative described in paragraph (5)) applying for a baby bonus payment shall provide the Commissioner with an application in such form and manner as the Commissioner may require. The application shall include— (A) the name and social security account number or taxpayer identification number of the eligible parent; (B) (i) if the eligible parent is applying before birth of the child, verification of gestational age obtained under paragraph (4); or (ii) if the eligible parent is applying after the birth of the child, documentation determined appropriate by the Commissioner to prove the age and identity of the child; (C) a written statement from the gestational parent stating, under penalty of perjury pursuant to section 1746 of title 28, United States Code— (i) whether such person is the biological parent of such fetus; and (ii) whether such person— (I) intends to retain custody of and parental rights to such child once born; (II) is acting as a gestational surrogate pursuant to a written surrogacy agreement and consents to the intended parent receiving the baby bonus payment; or (III) has entered into a pre-birth adoption agreement and consents to the prospective adoptive parent receiving the baby bonus payment; (D) the contact information of any other eligible parent known to the applicant; and (E) such other information as the Commissioner determines necessary. (3) Simultaneous application If an eligible parent has not received a baby bonus and does not have an application under paragraph (2), the Commissioner shall treat an application for a social security account number for a qualifying child as an application for a baby bonus payment under this section unless the eligible parent affirmatively indicates on such social security account number application an intent to opt out of receiving a baby bonus. The Commissioner may require, as a condition of receiving a payment under subsection (a), that the eligible parent submit information required under paragraph (2) in addition to the application for a social security account number. (4) Verification of gestational age (A) In general Upon the request of a gestational parent, a physician may make a determination with respect to the gestational age and expected due date of the fetus. Any determination made under this paragraph shall be based on the reasonable medical judgment of the physician following such inquiries, examinations, and tests as a reasonably prudent physician would deem necessary for purposes of making such determination. (B) Form If the physician has made a determination pursuant to subparagraph (A) that the gestational age of the fetus is 20 weeks or greater and the expected due date is on or after January 1st, 2026, such physician shall, upon the request of the gestational parent, provide the gestational parent with a form which includes the following: (i) The gestational age and the expected due date of the fetus. (ii) The name and social security account number or taxpayer identification number of the gestational parent. (iii) If the application is being submitted by a spouse or domestic partner of a gestational parent, the name and social security account number or taxpayer identification number of such spouse or domestic partner. (iv) The name and contact information of the physician. (v) A written documentation from such physician stating, under penalty of perjury pursuant to section 1746 of title 28, United States Code, that— (I) the gestational parent was determined to be pregnant with the fetus, according to standard medical practice, by such physician; and (II) such physician has determined that, in their reasonable medical judgment, the gestational age of the fetus is 20 weeks or greater and the expected due date is on or after January 1st, 2026. (5) Authorized representatives (A) In general An application may be submitted on behalf of an eligible parent by— (i) a spouse or domestic partner; (ii) a legal representative; (iii) a healthcare provider involved in providing prenatal or postnatal care to the eligible parent; or (iv) an social service agency determined appropriate by the Commissioner to submit such applications. (B) Documentation The Commissioner may require that a person submitting a request in accordance with subparagraph (A) provide such documentation as the Commissioner determines appropriate to prevent fraud or abuse. (d) Effect of death or loss of qualifying child In the case of the involuntary death of a fetus or qualifying child, or the death of a fetus or qualifying child as a result of any treatment intended to save the life of the gestational parent or any treatment of an ectopic pregnancy, occurring after 20 weeks gestation, such death shall have no effect with respect to whether the payment is allowed under this section to an eligible parent, provided that such person otherwise satisfies the applicable requirements under this section. (e) Payment recovery; penalties (1) Overpayments and underpayment (A) In general Whenever the Commissioner determines that more or less than the correct amount of payment has been made to a person, proper adjustment or recovery shall be made in the same manner as adjustment or recovery is made under section 204 of the Social Security Act (42 U.S.C. 404) with respect to overpayments or underpayments under title II of such Act. Notwithstanding the previous sentence, payments under such title may not be adjusted for the purpose of recovering a payment under this section. (B) Other recovery In the case of an overpayment to an individual who later becomes entitled to a benefit under this section, the Commissioner may decrease such benefit in order to recover such overpayment. (2) Penalties Section 208 of the Social Security Act (42 U.S.C. 408) shall apply with respect to baby bonus payments under this section in the same manner as such section applies with respect to monthly insurance benefits under title II of such Act. (f) Income disregard A baby bonus payment made under this section shall not be taken into account as income for purposes of the Internal Revenue Code of 1986, and shall not be taken into account as income or resources for purposes of determining the eligibility of such individual or any other individual for benefits or assistance, or the amount or extent of benefits or assistance, under any Federal program or under any State or local program financed in whole or in part with Federal funds. (g) Prohibition Notwithstanding any other provision of law, information submitted pursuant to subsection (c) may not be used for any purpose other than to determine eligibility for a baby bonus payment under this section.