The Urgent Need to Bring Back the Expanded Child Tax Credit

In the United States, we are faced with a stark reality: child poverty is on the rise, and it’s a choice we’ve made as a nation. Recent Census data reveals a troubling trend – the number of people living below the poverty line increased by a staggering 15.3 million in 2022. Most alarmingly, the child poverty rate more than doubled, jumping from a historic low of 5.2 percent in 2021 to a distressing 12.4 percent in 2022.

This dramatic spike in child poverty is not a consequence of a pandemic or a severe economic recession. It’s not due to a sudden surge in unemployment either. In fact, employment rates remain high. The primary cause of this distressing rise in child poverty, according to the Census Bureau, is a policy choice made by Congress – the expiration of the enhanced child tax credit that was introduced during the Covid-19 pandemic.

In the previous year, this modest but essential boost in federal support, offering an additional $250 to $300 per month for households with children, had a remarkable impact. It nearly halved the child poverty rate. When Congress expanded the child tax credit in 2021, fewer children lived in poverty. Tragically, when they failed to continue this expansion in 2022, child poverty surged.

To put it simply, two policy decisions by Congress – one that significantly reduced child poverty and another that drastically increased it – were at the heart of this crisis. This raises a critical question: Who were the key figures in Congress responsible for this choice? It was primarily Republicans, along with a few Democrats, including Senators Joe Manchin of West Virginia and Kyrsten Sinema of Arizona, who rejected efforts by the Biden administration and most congressional Democrats to maintain the enhanced child tax credits.

House Democrats supported the extension of these credits, but Senate Democrats needed unanimous support from their caucus to pass the legislation through the reconciliation process. Unfortunately, Manchin insisted on imposing work requirements and other restrictions on parents, and Sinema (she now identifies as an Independent) also refused to support the extension. These decisions have had dire consequences for our nation’s children.

The truth is, ending poverty is not an insurmountable challenge, especially for a wealthy nation like the United States. We have the knowledge and the means to do it, as demonstrated by the substantial progress we made before these critical policies were rolled back. It’s reminiscent of our achievements in the 1930s when FDR’s New Deal programs responded to the Great Depression, reducing unemployment from nearly 25 percent to around 10 percent within eight years.

Similarly, in the 1960s, President Johnson’s introduction of Medicare and Medicaid, along with other Great Society initiatives, lowered the poverty rate from 22 percent to around 13 percent. These programs addressed key drivers of poverty, including exorbitant medical costs.

The evidence is clear: the expanded Child Tax Credit made a significant dent in child poverty. Sinema, Manchin, and the GOP allowed it to expire, leading to a devastating increase in child poverty. This isn’t just a matter of policy; it’s a moral choice. In the wealthiest nation on earth, it is morally indefensible that millions of our children are living in poverty. They don’t have to be.

Expanding the Child Tax Credit should be our top tax policy priority, not just for this year but also during the 2025 tax debate. It’s a choice that can make a world of difference for countless children and families, and it’s time to make the right choice for our nation’s future.

In conclusion, the recent surge in child poverty is not inevitable. It’s the result of policy decisions that can be reversed. It’s time to recognize that we have the power to reduce child poverty and give our children a brighter future. It’s time to bring back the expanded Child Tax Credit and make it a priority in our national agenda.