Last year, Congress let a Rescue Plan expansion of the child tax credit benefits expire, harming children and families. Expanded benefits were $3,600 per child ages 0-6, and $3,000 per child ages 6-17 vs. just $2,000 per child previously. Families received monthly installments of the full child tax credit, even when benefits exceeded their tax bill. Using a poverty measure which incorporates basic costs of living and income from government benefits, childhood poverty rates dropped from 9.7% in 2020 to 5.2% in 2021 — by 46%. This gain quickly reversed with expiration of the expanded benefits — 2022 rates rose to 12.4%.
We strongly encourage our delegation to fix this via the budgeting process and ensure that those most in need receive help. Currently, a couple must earn $50,000 to receive the full $2,000 per child credit, while those earning $5,000 receive just $187.50 per child. Recipients in lower income brackets used child tax credit payments for basic expenses, debt repayment and investments in their children’s education. The expanded child tax credit reduced food and housing insecurity substantially, and contrary to perceptions, recipients participated in the workforce at higher rates than nonrecipients. We can’t claim to be family friendly if we don’t invest in the future of our children and families.
Ellen Brady
RESULTS-UT domestic group lead
Murray