In 2021, Democrats in Congress expanded the child tax credit when they passed the American Rescue Plan Act to provide critical resources for American families. For the first time in history, the full tax credit was made available to families with the lowest incomes.
As a result, child poverty fell by 46% in 2021, with Black and Hispanic child poverty falling by 6.3% in each community, impacting 716,000 Black children and 1.2 million Hispanic children. However, it was only a temporary stopgap and the program expired at the end of December 2021. Now that Republicans have narrowly taken the House, we cannot count on Congress voting to restore the child tax credit soon despite it being wildly popular.
Fortunately, at least 15 states—including Oregon, Nebraska, Illinois, Connecticut, Rhode Island, Utah, California, New York, Vermont, New Mexico, New Jersey, Maryland, Massachusetts, Colorado, and Maine—can take action on their own.
If you live in one of these states, sign and send the petition to your state legislators: Fight child poverty. Provide for families with a state-level child tax credit, because Congress has not delivered.
The benefits of direct cash payment programs like the expanded child tax credit are well documented. When in place, these policies achieved historic drops in child poverty, and drastically reduced food insecurity, providing families with the financial stability they deserve.
The gains made during the expansion in 2021 have since eroded. Since the program ended, an estimated 3.7 million children have fallen back into poverty.
Six states—Oregon, Nebraska, Illinois, Connecticut, Rhode Island, and Utah—are already considering versions of a state child tax credit or earned income tax credit. And in California, New York, Vermont, New Mexico, New Jersey, Maryland, Massachusetts, Colorado, and Maine, the state legislature can expand upon their preexisting credits.
The proposals in each state vary, but they all have the same underlying goal: With the federal child tax credit gone, families need support. And there are plans underway. Congress is not off the hook, and these states can help families thrive right now.
Enacting and expanding state-based child tax credits is not only the morally right thing to do, it’s politically popular. A November 2022 Morning Consult/ZERO TO THREE poll shows 85% of parents with babies and toddlers want Congress to take swift action in passing the expanded child tax credit. A September 2022 survey of 1,500 voters surveyed said support for the child tax credit crosses party lines: 86% of Democrats, 77% of independents, and 64% of Republicans favor the child tax credit.
The expanded child tax credit gave families the resources needed to help keep up with the cost of living, dramatically reducing child poverty and hunger. State legislators have the opportunity and ability to strengthen our families through popular, bipartisan legislation. And with everyone struggling to make ends meet, they can't do it soon enough.
If you live in OR, NE, IL, CT, RI, UT, CA, NY, VT, NM, NJ, MD, MA, CO, or ME, send a letter to your state legislators urging them to do all they can to provide for families in your state.