Fact!
The expanded child tax credit (CTC), part of the American Rescue Plan, led to a record low child poverty rate of 5.2%. Unfortunately, less than a year after it took effect, Congress let it expire. Since then, the child poverty rate has more than doubled to 12.4%.
Outcomes of expanded CTC:
- Child poverty dropped from 9.7% to 5.2%
- Kept over 2 million children above the poverty line
- Lessened differences in poverty rates between children of all races and ethnicities
- Over 90% of low-income families used their monthly payments to buy food, pay utility bills, make housing payments, buy clothing, and cover education costs
Since expiration of program:
- An estimated 3.4 million more children are in poverty
- The child poverty rate has more than doubled to 12.4%
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Sources: US Census, Vox, Center on Budget & Policy Priorities, Center on Policy and Social Policy