The Child Tax Credit is one of the nation’s strongest tools to provide tens of millions of families with some support and breathing room while raising children. It has also being shown to be one of the most effective tools ever for lowering child poverty. Enacted in 1997, the credit currently provides up to $2,000 per child to about 40 million families every year.
The American Rescue Plan made historic expansions to the Child Tax Credit (CTC). For the first time, the full amount of the CTC went to every family who needed it – so we were not giving the least to families struggling the most. For the first time, the CTC was delivered in monthly payments – usually direct deposit – and on the same day of each month. For the first time, the CTC provided more to help support children at the youngest ages. The results were profound. Over 60 million children received the expanded CTC – providing critical breathing room to tens of millions of working families. In addition, it had a dramatic impact on lowering child poverty. The expansion cut child poverty nearly in half to a record low of 5.2%, while Black, Hispanic, Asian and Native American children all saw record lows in child poverty.
The American Rescue Plan also permanentlymade all families with children in Puerto Rico eligiblefor the same Child Tax Creditas other American families – and also led to historic reductions in Puerto Rican child poverty in 2021.
President Biden is committed torestoring the American Rescue Plan’scriticalexpansion of the Child Tax Creditto lift up all American families and children.
Additional Resources:
US Census Bureau:The Impact of the 2021 Expanded Child Tax Credit on Child Poverty
Internal Revenue Service:Resources and Guidance for Puerto Rico families that may qualify for the Child Tax Credit
