Child Poverty In America Increases A Year After Child Tax Credit Ended In 2021

In December 2021, the Child Tax Credit (CTC) program ended which caused an increase in child poverty in the United States. This program would have continued to provide significant relief to most working families had it not, says Greenstein.

Child Tax Credit Ended December 2021

On March 11, 2021, the American Rescue Plan signed the Child Tax Credit (CTC) program into law. This program substantially diminished child poverty by 30% or more. It was the biggest Child Tax Credit ever provided by the federal government in history. However, in December 2021, the expansion was put to an end after much opposition from several Republican lawmakers. Representative Adam Schiff, one of the Democrats leading the mission to reinstitute the CTC program, stated that upon the establishment of CTC, the framework had an extensive effect on child poverty.

As of present, the CTC provides only a little to no tax credit to roughly 19 million poor children. On the other hand, children in households that make as much as $400,000 are able to receive full credit, as reported by Greenstein. Ailen Arreaza, co-director of ParentsTogether Action, has also released a statement. According to her, the Child Tax Credit used to be the best program Americans have to diminish child poverty. However, the Republicans and Senator Joe Manchin decided to rely on monthly Child Checks. Consequently, these checks were not enough amidst the COVID-19 outbreak and the price inflation of housing, food, and childcare.

Numbers Don’t Lie

The office of Rep. Schiff released a report on statistics. Child poverty was reduced to almost 40% as identified between July and December 2021. It reached a record low of 5.2%. This data is equivalent to 3 million children taken out of poverty in only a single month. A survey that was also issued by ParentsTogether Action, a non-profit organization for family advocacy, revealed that 61% of American families found it more difficult to meet their basic needs since CTC ended and 22% can no longer meet their needs at all, says Fragassi.