This bill, known as the "Baby Bonus Act," aims to establish a program providing financial support to families with new children. It mandates the creation of the Office of Baby Assistance within the Social Security Administration (SSA), led by a Deputy Commissioner. This new office will be responsible for managing all aspects of the program, including processing applications, making payments, preventing fraud, and conducting public outreach. Beginning January 1, 2026, the program will issue a baby bonus payment to eligible parents for each qualifying child. The initial payment amount is set at $2,000 for calendar year 2026 , with subsequent annual adjustments based on the cost-of-living index. A "qualifying child" includes a child born on or after this date, or a fetus with at least 20 weeks gestational age and an expected due date on or after January 1, 2026. Payments are also permitted in cases of involuntary fetal or child death occurring after 20 weeks gestation. To receive a bonus, eligible parents must submit an application within one year of the child's birth or death, providing necessary identification and documentation. The bill allows for advance payments up to 60 days before the expected due date. It also outlines specific procedures for resolving disputes when multiple eligible parents apply for the same child, prioritizing the parent with primary physical custody or the first approved applicant, and allowing for payment division in cases of joint custody. Significantly, these baby bonus payments are not to be considered income for federal tax purposes or for determining eligibility for any other federal, state, or local assistance programs. The SSA Commissioner is authorized to recover any overpayments and impose penalties for fraud, aligning with existing Social Security Act provisions. Furthermore, any information submitted for the bonus program is strictly prohibited from being used for any other purpose.