The expanded Child Tax Credit: A game-changing investment for kids and families
Today, advance payments of the Child Tax Credit will start to arrive for most families with children across the country. This game-changing investment is a feature of the pandemic recovery legislation, specifically the American Rescue Plan. It’s especially notable in that it allocates money to those who need it the most, a step that fixes a persistent gap in the previous version of the Child Tax Credit and has the potential tocut child poverty in this country in half. Unlike the previous tax credit calculation, even families claiming zero earned income are now entitled to the full credit amount, which has been raised to a total of $3,600 per child under 6 and $3,000 per child 6-17. In most cases monthly payments will be $300 per child under 6 and $250 for older children.
Because checks are being sent out monthly instead of in a lump sum at the end of the year, these payments effectively raise families’ monthly income and can more readily help with everyday expenses. Furthermore, the payments are expected to reach over 90% of Vermont’s kids, 30,000 of whom did not receive the full credit previously, lifting an estimated 4,000 Vermont children above the poverty line.
This isn’t just a pandemic emergency measure, it’s a correction, making sure that kids in even the lowest-income households aren’t left out of the meaningful concrete support higher-earning households have already been getting. Research and experience shows that this money, flowing consistently into people’s hands, will end up right back in Vermont's local economy, multiplying the benefits.
In spite of this progress, more remains to be done. Here in Vermont, we want all kids and families to emerge stronger from the pandemic. Therefore, it is critical that we address inequities for those who might not otherwise be able to access benefits by creating parity for families without documentation of citizenship, as we did with the first stimulus payments. Furthermore, we must take action around the money that was set aside in federal relief legislation for current and former foster youth. Voices is currently advocating for Vermont to join the states who are using these funds for direct cash assistance. To learn more about accessing these funds, visit https://www.checkforus.org/.
We are grateful to our elected officials for taking this meaningful step to end child poverty. Now is the time to act to preserve these gains by making the expansion of the Child Tax Credit permanent. Poverty is a measure of lack of cash. This is how we start to end it.