1. Short title This Act may be cited as the American Family Act . 2. Establishment of refundable child tax credit with monthly advance payment (a) In general Subpart A of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 24 the following new sections: 24A. Monthly child tax credit (a) Allowance of credit There shall be allowed as a credit against the tax imposed by this chapter for the taxable year the sum of the monthly specified child allowances determined with respect to the taxpayer under subsection (b) for each calendar month during such taxable year. (b) Monthly specified child allowance (1) In general For purposes of this section, the term monthly specified child allowance means, with respect to any taxpayer for any calendar month, the sum of— (A) $250, with respect to each specified child of such taxpayer who will (as of the close of such month) have attained age 6, plus (B) 120 percent of the dollar amount in effect for such month under subparagraph (A), with respect to each specified child of such taxpayer who will not (as of the close of such month) have attained age 6. In the case of any specified child of such taxpayer who will not (as of the close of such month) have attained the age of 1 month, subparagraph (B) shall be applied by substituting 800 percent for 120 percent . (2) Limitations based on modified adjusted gross income (A) Initial reduction The monthly specified child allowance otherwise determined under paragraph (1) with respect to any taxpayer for any calendar month shall be reduced (but not below zero) by 1/12 of 5 percent of the excess (if any) of the taxpayer’s modified adjusted gross income for the applicable taxable year over the initial threshold amount in effect for such applicable taxable year. (B) Limitation on initial reduction In the case of any calendar month beginning before January 1, 2026, the amount of the reduction under subparagraph (A) shall not exceed the lesser of— (i) the excess (if any) of— (I) the