Expanded Child Tax Credits Lifted Over 4 million US Children Out of Poverty
Latest News on Child Tax Credit
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A bipartisan bill that would extend the Child Tax Credit through 2025 has passed through the House Ways and Means Committee. The bill has passed the House and a vote in the Senate is expected soon.
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Broad support from a diverse coalition of elected and community leaders, including pro-life and pro-family advocates, are supporting this bipartisan bill. US Conference of Catholic Bishops thank members of Congress for “renewed conversation and commitment on both sides of the aisle” in this effort.
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Proposal could immediately affect millions of families filing their 2023 taxes. Over 36 million American families will benefit with greatest impact to children living below or near the poverty line.
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Key Facts
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The American Rescue Plan Act of 2021 temporarily expanded the child tax credit for the 2021 tax year to $3,600 per child younger than age 6 and $3,000 per child up to age 17.
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The expanded child tax credit reached over 61 million children in more than 36 million households, and funds were primarily used for child care, food, housing and other basic needs.
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​In 2021 child poverty fell to its lowest level ever in America.
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In 2022 Congress did not renew CTC expansion, child poverty surged by 41%.
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Expansion of Child Tax Credit before Congress in 2024 has bipartisan support. A broad coalition of conservative and pro-life faith and community leaders and progressive community based organizations have come together to support the bill.
The American Rescue Plan Act, which was part of the Covid-19 stimulus package enacted back in March 2021, helped millions of families stay out of poverty. Many tax economists are claiming the American Rescue Plan Act has done more to protect our children than most other policies over the last 50 years and has helped protect life across the country.
American Rescue Plan stipends helped families buy necessities, dropping the number of households with children who reported not having enough food in the house from 13.7% to 9.5% in just a week.
Some Key impacts from the American Rescue Plan:
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Over 4 million children lifted above the poverty line.
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27 million children with access to new resources.
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An estimated total of 65 million children were positively impacted by monthly installments.
An analysis by the Urban Institute found that making these changes permanent would reduce child poverty by more than 40%, helping more than 4.3 million children.
Despite these amazing accomplishments from the last stimulus bill, all 50 Senate Republicans and Sen. Joe Manchin, D-W.V. voted against the Build Back Better Act, preventing further economic stimulus and reversing much of the positive change of the American Rescue Plan.
Hope is not lost, however. A recent compromise to expand the Child Tax Credit through 2025 recently passed the House, and Senate Democrats hope to pass it by tax-filing season. While it wouldn’t be permanent, this bill would help bring millions of children out of poverty and provide them with a better future.
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The bill would adjust the earnings requirements to take advantage of the tax credit, making it easier for lower-income families – those earning roughly between $10,000 and $50,000 – to get the full credit. These families would get an average credit that is about $1,130 higher than in 2022.
Families with higher incomes will also see larger benefits in future years if this expansion is passed, because the credit would be indexed to inflation to help families keep pace with rising expenses.
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The Center on Budget and Policy Priorities estimates that this policy would help 16 million kids. That’s more than 1 in 5 of the nation’s 72 million children!
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Read More About the Impacts of the Child Tax Credit Expansion, how it protects kids, and why it ended.