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News Update

Child poverty rates spike after tax credit ends

Child poverty rates have crept back up since the expanded child tax credit expired, as The 19th reports, leaving many families struggling with food insecurity amid rising inflation.

More than 36 million families received the credit last year and the child poverty rate fell nearly in half, as the Los Angeles Times noted. Families often used the money to cover essentials such as groceries, rent, utility bills and child care.

After the payments expired last December, however, nearly 4 million children fell below the poverty line, research shows.  

“We basically saw an erosion of the gains that were made under the monthly child tax credit payments in 2021,” said Allison Bovell-Ammon, the director of policy and communications at Children’s Health Watch.

Conservative politicians have opposed the child benefit, however, arguing that it discourages parents from working.