Expanded Child Tax Credit Led to Record Low Child Poverty Rate

Expanded Child Tax Credit Led to Record Low Child Poverty Rate 625 855 Kim Beck

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 CensusVoxCenter on Budget & Policy PrioritiesCenter on Policy and Social Policy