One of the American Rescue Plan (ARP)’s most successful programs, the expanded Child Tax Credit (CTC), significantly lowered child poverty in the United States and infused local economies with tens of billions of dollars in additional spending. When CTC checks started hitting bank accounts in 2021, the life-changing impact of the credit was clear right away. In six weeks, food insecurity had dropped by nearly one-third. Improvements were significant among Black and Latinx families, who experience the highest rates of food hardship because of historic and persistent racism and inequities in public policies.
“The expanded credit meant so much to my family and me,” said Krystina Cummins, who lives in Auburn and serves on the Poverty Reduction Work Group Steering Committee. “It helped us pay bills on time and stay on track instead of falling behind and using credit cards and such. It also meant more freedom to do family outings and such.”
In Washington, 1,380,000 children benefited from the expanded monthly Child Tax Credit – and 67,000 children were lifted out of poverty. The American Rescue Plan Act reduced poverty in our state by 43.4%. The average monthly credit amount per family was $444. That helped families meet basic needs, stay housed, and feed their children.
“The expanded credit meant so much to my family and me,” said Krystina Cummins, who lives in Auburn and serves on the Poverty Reduction Work Group Steering Committee. “It helped us pay bills on time and stay on track instead of falling behind and using credit cards and such. It also meant more freedom to do family outings and such.”
Families who are no longer receiving tax credits since the expansion expired in December have been struggling to make ends meet. That is why Congress must act to reinstate the expanded Child Tax Credit. If they don’t, thousands of Washington’s kids and families will continue to struggle. And the state stands to lose up to $441 million in additional economic activity each month.
“The expanded Child Tax Credit was a lifeline for families in Washington state and across the country,” said Elyssa Schmeir, vice president for government relations and national budget at MomsRising. “The expanded Child Tax Credit brought a dramatic and badly needed reduction in children living in poverty. Especially with prices rising so fast, families need these funds to survive.”
Thanks to advocacy at the state level, eligible families will soon receive a boost from the Washington Working Families Tax Credit, which will go into effect in 2023. This state credit will provide up to $1,200 a year, depending on family size and eligibility, to Washington residents. Because this is a new credit, outreach will be essential to make sure that community members know about the credit.
As the cost of living continues to skyrocket, due to factors like corporate profiteering and consolidation of corporations, people throughout the U.S. need the expanded Child Tax credit. Direct cash programs, at the state and federal level, are a proven way to directly reduce poverty and improve the health and wellness of children and families.
Parts of this blog post were excerpted from an Economic Security Project press release.