Biden’s child tax credit lifted 3 million children out of poverty in the first round of payments alone.

  • New research shows that extended child tax credits have already helped reduce child poverty after a single payment.
  • The child poverty rate fell to 15.9 percent in June from 11.9 percent in July.
  • Researchers found that relief measures related to the corona virus lifted 6 million children out of poverty in July.
  • See more stories on the Insider Business page.

The government began sending monthly payments to families in July, already saving three million children from falling below the poverty line – and with just one payment.

New research from Columbia University’s Center for Poverty and Social Policy shows that the first payment of a child tax credit reduced the child poverty rate from 15.8 percent in June to 11.9 percent or 25 percent in July.

The authors note that this monthly decline was due to the first advance child tax credit payment, where the credit alone lifted about three million children out of poverty. Families receiving monthly payments in advance are receiving $ 250 ($ AU345) per month for children 6 to 17 years old and up to $ 300 (U AU414) per month for children under 6. In July alone, Corona’s relief efforts to keep 6 million children out of poverty have been fully effective in reducing child poverty.

A big deal for American children.

Zachary Parolin, a senior fellow at the Center for Poverty and Social Policy at Columbia University and one of the authors of the report, wrote: Twitter “Child poverty is very unstable throughout the year.”

“It’s part of why it’s monthly. [child tax credit] This is a big thing: the decline you will see in July will remain low and stable until the end of 2021.

The first advance child tax credit was paid to millions of families on July 15. The family began receiving the second on August 13 and can expect four more monthly payments this year.

Temporary extensions include making the credit fully repayable, qualifying at age 17, and withdrawing half the amount in monthly installments. Credit increased from 2,000 (U AU2,763) for children ages 6 to 17 to (3,000 ($ AU4,145) per child and US ، 3,600 (U AU4,974) for 6 years There is also a minimum income requirement of سے 2,2,500 (U AU3,454) for children under the age of 18, which means that family members cannot be included.

Families are using checks to pay off debts and buy food.

The Census Bureau’s Home Plus Survey may also provide some insight into how child tax credit payments have benefited so far. Data collected from July 21 to August 2 show that 67.6% of households in these households have received a child tax credit in the past four weeks, or spent most of it or repaid most of the loan.

Low-income families said they were using it more to pay off debts or spending more than high-income households. Based on the Plus survey, the Child Tax Credit may have helped reduce the share of households with children who say they sometimes don’t have enough to eat.

Currently, this promotion will only last for a year, but Congress can extend it.

Although the report notes that 59.3 million children received the first payment, the poverty rate could have been even lower if all those who were to receive it.

“Expanding coverage for all eligible children is key to achieving the full anti-poverty potential of the Child Tax Credit, with the greatest benefit for black and Latino children,” the authors wrote.

The currently extended child tax credit is for one year only. As insider Joseph Zebalous-Rogue reports, Democrats want to extend the extended child tax credit to at least 2025.

“We’re talking, I keep insisting on consistency, but we’ll see where it goes,” Rosa Deluro, chair of the House Appropriations Committee and architect of the measure, told Zebalous Roig.

The Urban Institute recently estimated how much the child poverty rate could be reduced with an expanded child tax credit, and found that “in a typical year, 4.3 million fewer children will be in poverty than children.” Represents a more than 40% reduction in poverty. “

Gregory AC, one of the authors of the Urban Institute’s report and vice president of revenue and benefits policy at the Urban Institute, told NPR’s Kelsey Sunil that if the program continues after other epidemics have expired. However, the United States may see a decrease in children. Poverty over 40%

“Changes to the Child Tax Credit are a new basic way to reduce child poverty and help families who have been struggling for a long time,” the ACS told Sunil.

Leave a Reply

Your email address will not be published.