The child tax credit (CTC) plays a major role in reducing child poverty, and its expansion under the American Rescue Plan Act of 2021 (ARP) would save more than four million children from poverty, researchers find.
Using the supplemental poverty measure, researchers from the Urban Institute look at how a permanent expansion of the CTC would affect child poverty in every state.
Drawing on state-specific data before and after credit expansion:
The CTC is a critical engine that has long demonstrated its capability to positively impact people living under the Federal Poverty Line. The ARP’s expansion of resources and eligibilities shows the Biden administration’s intent to find a solution to the growing number of adults and children living in financial hardship. Through permanent expansion, policymakers in Washington can not only lift millions of children from poverty but transform CTC into one of the most effective tools addressing children in need in the United States.
The nonprofit Urban Institute is dedicated to elevating the debate on social and economic policy. For nearly five decades, Urban scholars have conducted research and offered evidence-based solutions that improve lives and strengthen communities across a rapidly urbanizing world. Their objective research helps expand opportunities for all, reduce hardship among the most vulnerable, and strengthen the effectiveness of the public sector. Visit the Urban Institute’s Health Policy Center for more information specific to its staff and its recent research.
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