Another chance to end child poverty

Surely, one of the more rewarding experiences of being a legislator would be knowing you had a hand in creating or passing legislation that has accomplished undeniable good. Having done it once, an added comfort would come from knowing it can be done again if the problem reappears.

Child poverty has been a scourge in the United States for generations. The numbers may ebb and flow, but whatever the percentage, the reality that children in the wealthiest nation in the world do without life’s necessities should always shame us into action.

In 2020, the COVID pandemic, and the lockdown that followed, forced the federal government into dramatically addressing child poverty.

Emergency pandemic aid from the federal government in the forms of child tax credit expansion, the earnedincome tax credit and three rounds of checks sent directly to Americans significantly reduced poverty.

The percentage of children in poverty was slashed by nearly half, from 9.6% in 2020 to 5.2% in 2021, marking the largest one-year drop in child poverty on record, according to the Center on Budget and Policy Priorities.

One of the primary reasons for this change was the expansion of the child tax credit.

In early 2021, Congress expanded the child tax credit as part of President Joe Biden’s American Rescue Plan. The expansion, distributed in monthly payments, increased the maximum size of the benefit and made it fully refundable and available to all families with children.

Half of the credit was distributed from January through December 2021; the other half was distributed after parents filed their taxes in 2022.

Unfortunately, because of a lack of support from congressional Republicans and some Democrats, the expansion wasn’t made permanent. It expired at the end of 2021.

As a result, according to the Census Bureau, the child poverty rate more than doubled in 2022, rising to 12.4%.

Having squandered the opportunity to possibly eradicate child poverty in this generation, Congress now has a new opportunity to make a difference for families.

Earlier this month, a bipartisan $78 billion compromise plan was released

by House Ways and Means Committee Chairman Jason Smith, R-MO., and Senate Finance Committee Chairman Ron Wyden, D-ore.

The Tax Relief for American Families and Workers Act of 2024 includes $33 billion in business tax cuts and $33 billion toward expanding the child tax credit.

After expiration of the 2021 expansion, the amount of money families could receive per child was reduced to the amount set by President Donald Trump’s 2017 tax cuts.

Expansion under the proposed deal wouldn’t be as generous as that in 2021, and the credit wouldn’t be distributed through monthly checks. But it would make the credit more accessible to families with multiple children; raise the cap for the lowest-income families to match the amount for higher-income families; automatically adjust for inflation; and allow parents to use their previous year’s earnings for a larger credit.

The Center on Budget and Policy Priorities has said Black, Latino and American Indian children would especially benefit from the expansion.

Both the business and child tax credit expansion would last through 2025.

The bill would be retroactive to 2023, meaning quick passage would assure families would receive the benefits in this year’s tax refunds.

“My goal remains to get this passed in time for families and businesses to benefit in this upcoming tax filing season, and I’m going to pull out all the stops to get that done,” Wyden said in a statement.

Not only would it offer families relief, it would resume the effort to chip away at the scourge of child poverty.

Amid the tension and stalemating in Congress, which will likely worsen as we approach the November presidential election, passage of this bill would be a refreshing reminder of what’s possible when elected leaders focus on delivering for children and their families.

Hope emerges for a tax credit that puts families first