COLUMBIA RESEARCH: 3.7 MILLION MORE CHILDREN IN POVERTY IN JAN 2022 WITHOUT MONTHLY CHILD TAX CREDIT
The CTC Worked — Research Shows Why the Senate Must Renew the Policy
What everyone knew would happen has happened. While President Biden and the American Rescue Plan’s Child Tax Credit payments lifted millions of kids above the poverty line, providing a lifeline to middle-class and working families, the failure to extend the expanded CTC through the Build Back Better Act — as President Biden has advocated doing — means that 3.7 American children have fallen back into poverty, according to research from Columbia University.
The new research shows why renewing the Child Tax Credit should be an urgent priority for Congress. Without it, there will be greater long-term economic, educational, nutritional, and health risks for children across the country, including in states like West Virginia, one of the biggest beneficiaries of the expanded Child Tax Credit according to the West Virginia Center on Budget & Policy.
Not only is the Child Tax Credit essential to easing the economic burden on working families, it is also an investment in America’s children and the country’s future.
The monthly child poverty rate increased from 12.1 percent in December 2021 to 17 percent in January 2022, the highest rate since the end of 2020. The 4.9 percentage point (41 percent) increase in poverty represents 3.7 million more children in poverty due to the expiration of the monthly Child Tax Credit payments.
A roundup of the available research reveals that, while in place, the monthly Child Tax Credit payments buffered family finances amidst the continuing pandemic, increased families’ abilities to meet their basic needs, reduced child poverty and food insufficiency, and had no discernable negative effects on parental employment.
Between July and December 2021, the Internal Revenue Service paid out six months of advance Child Tax Credit payments worth up to $250 per child aged 6 to 17 and up to $300 per child aged under 6, reaching over 61 million children in over 36 million households. By December, it was keeping 3.7 million children from poverty and reducing monthly child poverty by 30 percent.
About Invest in America
The operation consists of two components: Invest in America, the charitable and public education arm, which is a fiscally sponsored project of Economic Security Project funded by the William and Flora Hewlett Foundation and Economic Security Project co-chair Chris Hughes; and Invest in America Action, the advocacy and social welfare arm, which is a fiscally sponsored project of Economic Security Project Action funded by Chris Hughes and the Omidyar Network.