Beyond extending multiple tax breaks, the bipartisan tax agreement that could be brought up in the House this week has big implications for the health of children in low-income households, Victoria reports.

Driving the news: The legislation unveiled earlier this month by House Ways and Means Chair Jason Smith and Senate Finance Chair Ron Wyden would increase the refundable portion of the Child Tax Credit so that lower-income families who don't owe income taxes would still get a credit.

Zoom out: Low-income people often have to forgo health care in order to pay for necessities like rent or food.

• The end of major pandemic-era safety net program expansions put more families in a bind as inflation made the cost of living rise.
• Under the 2021 American Rescue Plan, families were able to receive a $3,000 to $3,600 tax credit per child, but the credit only was in effect for a year.
• That credit was received in the form of an automatic monthly payment rather than an annual lump sum refund.

The Child Tax Credit policy in the current version of the Wyden-Smith tax package is different, in that it's targeted to the most low-income families and aimed at allowing those with multiple children to claim the benefit for every child.

• It's estimated that 16 million children would benefit from the proposal in its first year.
• The maximum amount of tax credit that would be refunded per child would increase each year from 2023 to 2025 (from $1,800 in 2023, $1,900 in 2024 and $2,000 in 2025). It's also indexed to inflation for the first time.

What they're saying: Wyden told Axios that the health implications of the CTC were "hugely important" and he said it was an aspect of the bill that he's discussed with Republican colleagues.

• "If you're improving the lives of 16 million vulnerable kids, you know what you're doing for them, is you're making it possible for them to get more nutritious food. A pair of shoes that don't have holes in them," Wyden said.
• Rep. Suzan DelBene, who's been one of the big proponents for the CTC in the House, told Axios that lifting kids out of poverty means they have better outcomes, including fewer chronic health conditions when they're older.

Context: Research has shown a direct connection between lower incomes and declining health outcomes, and that the previous CTC expansion had a positive effect including on health outcomes.

• Children who are experiencing poverty are more likely to have developmental disabilities and worsening health as well as develop chronic health problems and depression later in life.

The big picture: "We know that poverty is significantly associated with increased morbidity and mortality. And it is a mutually reinforcing cycle. So the more poor you are, the sicker you are, and the less likely you are to work to take in additional income to lift you out of poverty," said Avenel Joseph, vice president for policy at the Robert Wood Johnson Foundation.

Yes, but: The tax agreement has angered multiple GOP lawmakers, who say they were blindsided by Smith's dealmaking.

• The friction could threaten plans to bring it up for a House vote this week.
• Senate Republicans are saying they want to hold a mark-up before floor consideration, and some have cited issues with how the Child Tax Credit was crafted.

Here's what caught our eye:

1. Drug price hearing: The CEOs of Johnson & Johnson and Merck agreed to testify before the Senate HELP Committee on Feb. 8 about the cost of prescription drugs, making a planned vote this week to subpoena the executives moot.

2. Medicare negotiations: CMS on Thursday is due to send drugmakers initial price offers for the first 10 medicines subject to Medicare price negotiations under the Inflation Reduction Act.

3. Health care spending: The House Energy and Commerce health subcommittee will hold a hearing Wednesday at 10am ET titled "Health Care Spending in the United States: Unsustainable for Patients, Employers, and Taxpayers."

4. "Food is medicine": HHS on Wednesday will host an all-day summit on nutrition and health at its headquarters as it prepares a strategy to reduce food-related chronic diseases.

5. Vaccine development: An analysis of nearly 250 vaccine programs by BIO found many diseases, including chlamydia and Lyme disease, have only one vaccine in clinical development — and that four of the most drug-resistant superbugs don't have a single vaccine effort.