Child hunger continues to be a leading problem in the United States, affecting children heavily. In the aftermath of the COVID-19 pandemic, the number of people unable to provide food for themselves and their children skyrocketed. Save the Children estimates 12 million children in the United States go hungry. In an attempt to help feed these families and lower rates of child starvation, the government implemented the Child Tax Credit and other supplementary programs and policies.
What is the Child Tax Credit?
The Child Tax Credit was implemented in 2020 in order to help mitigate the poverty and hunger caused by the COVID-19 pandemic. With the 2020 Child Tax Credit, taxpayers could receive up to $2000 per child under age 17. The policy also included a “special “look-back” rule (which) allowed taxpayers to determine the amount of their credits on the basis of their 2019 income. This special provision was particularly important for taxpayers whose difference in earnings from 2019 to 2020 affected their eligibility for 2020 credit” (Investopedia).
In addition to the federal level Child Tax Credit, some states chose to implement their own policies to provide funding to families in need.. These states include California, Colorado, Connecticut, Idaho, Maine, Maryland, Massachusetts, New Jersey, New Mexico, New York, and Vermont. The state policies were varied based on governmental discretion, but you can learn more about their specifics here.
Is there a difference between the Child Tax Credit and the Expanded Child Tax Credit?
The United States Department of the Treasury explains how Child Tax Credit was expanded in 2021 to offer greater assistance to families. The following changes were made:
- Eligible dependent children were now eligible for a $3,000 credit after age seven while children age six and under became eligible for $3,600 in credit
- The policy expanded to include children who turned 17
- The Child Tax Credit became fully refundable, so those who owed taxes higher than the amount they were supposed to receive could still qualify to receive the payment
The Child Tax Credit was expanded in 2021 as part of the American Rescue Plan.
The future of the Child Tax Credit & Child Hunger
The Child Tax Credit will not move forward into 2022. The policy was allowed to lapse by lawmakers, who expressed concerns about the funds being used to purchase illegal drugs. However, studies are showing the lapse of the Child Tax Credit is causing poverty rates and starvation of children to rise in great volume. One source states, “In January, the first month since July 2021 that eligible families didn’t receive a monthly payment of up to $300 per child, 3.7 million kids were thrown into poverty.”
One blog post from the Economic Policy Institute cites reasoning for why the Child Tax Credit should be continued. The post was authored by Julia Raifman, assistant professor of public health at Boston University, and Allison Bovell-Ammon, the Boston Medical Center Children’s HealthWatch Director of Policy Strategy. As you consider your own stance on this policy, their data may be helpful. First and foremost, the authors point out how damaging it can be for a child to suffer from hunger. “Food insufficiency among families with children poses a short- and long-term moral and economic threat to the United States. Even brief disruptions in access to food can have lasting consequences. Not having enough to eat often disrupts children’s cognitive and emotional development and education.” This is particularly concerning to parents who worry about their children’s ability to succeed in school after a year of online learning and school cancellations.
Furthermore, the authors explained, “Our findings were consistent with those of other researchers, who found that the advance CTC was associated with a 25% decline in poverty and improved dietary quality for children.” It is clear the Child Tax Credit was responsible for diminishing poverty rates and allowing children to eat better meals throughout the day. To the insinuation that parents were using the payments to fund drug abuse, the researchers said, “Other analyses indicate families with low incomes overwhelmingly used advance CTC payments on basic needs for children, including food, rent, utilities, clothing, and educational costs. There is also no evidence suggesting a reduction in employment among parents in families receiving CTC payments.”
What else is being done about child hunger?
In addition to the Child Tax Credit, there are other policies implemented to help families with financial need. Families can qualify for food stamps (SNAP program) or the Women Infant and Children (WIC) welfare program. School aged children going hungry can qualify for free and assisted lunch programs. While school lunch programs offer relief for many hungry children, they are unfortunately not always available. The Child Tax Credit was helpful during the pandemic, when most children were not attending school in person and could not receive their lunches.
As you consider your own thoughts on these policies, we encourage you to review the data—which in this case, seems to show a positive correlation between the Child Tax Credit payments and lower levels of poverty within the United States. It remains true, however, that policies are layered with complexity. As always, you can be sure Policy vs Politics will keep you updated with unbiased information about policies, laws and regulations that affect you, including the Child Tax Credit policy.