Tim Walz, Kamala Harris' running mate, could play a key role in shaping the child tax credit.

• Kamala Harris, the Democratic nominee, has chosen Minnesota Gov. Tim Walz as her running mate, potentially strengthening her policy focus on the middle class, including the child tax credit.
• Minnesota's new refundable child tax credit for 2023 was $1,750 per child, making it the most generous in the country for low-income families, as described by Walz.
• The expansion of the federal child tax credit has bipartisan support, but its implementation could be challenging depending on which party holds Congress.

Kamala Harris has chosen Minnesota Gov. Tim Walz as her running mate for the 2024 presidential election, which could strengthen her focus on policies that benefit middle-class Americans, such as the child tax credit, according to experts.

In 2023, Minnesota enacted a state-level child tax credit after the federal expansion ended.

How Minnesota's child tax credit stacks up

Minnesota's refundable child tax credit for 2023 was $1,750 per child, the largest in the country for low earners. The credit begins phasing out at $29,500 for single filers or $35,000 for married couples filing together. The complete phaseout depends on the number of children, family income, and filing status.

"The Tax Foundation's vice president of state projects, Jared Walczak, stated that Minnesota's new child tax credit is unique in its specificity, but it is the most generous in the country for low-income families."

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Last week, Walz announced that over 437,000 eligible children in Minnesota received a tax credit worth an average of $1,244 per child for the 2023 tax year.

We invested directly in the financial security and well-being of families across the state through our nation-leading child tax credit, as stated in a press release.

Eligible Minnesota families can receive 50% of the credit before the tax season via advance payments for tax year 2024, as was done for the federal child tax credit in 2021, resulting in a historic low of 5.2% child poverty rate that year, according to a Columbia University analysis.

How Walz could shape federal policy

Walz, Minnesota's child tax credit upgrades were the single biggest line item in his latest supplemental budget. The policy could resurface to support an expanded federal child tax credit on the presidential campaign trail. However, enacting federal changes could be more challenging, depending on which party controls Congress, experts say.

The child tax credit was enacted in Minnesota by a Democratic-controlled state legislature with a significant budget surplus, unlike the federal climate.

While other governors implemented state tax breaks, Walz was able to take it a step further, with the child tax credit being the most noticeable example, according to Auxier.

Walz's office did not immediately respond to CNBC's request for comment.

Although there was bipartisan backing for an increased federal child tax credit, Senate Republicans impeded the measure's passage last month to postpone discussions.

The vote was a "blatant attempt to score political points," according to Sen. Mike Crapo, R-Idaho, the ranking member of the Senate Finance Committee. He stated that Senate Republicans have concerns about the policy but are open to negotiating a "child tax credit solution that a majority of Republicans can support."