On April 14, 2022, the Center on Budget and Policy Priorities released a paper from Bradley Hardy of the Georgetown McCourt School of Public Policy explaining the importance of the Child Tax Credit as a critical economic assistance program.
From the report: “An expanded, monthly, and fully refundable Child Tax Credit would yield long-term reductions in poverty and hardship. The National Academies of Science, Engineering, and Medicine’s 2019 report on reducing child poverty found that, out of ten policy options, a child allowance similar to the expanded Child Tax Credit would be the single most effective policy for reducing child poverty. This is consistent with a large body of evidence showing that economic assistance programs reduce major disruptions in the form of poverty, income volatility, and food insecurity. Indeed, surveys show that families with low incomes overwhelmingly used the monthly Child Tax Credit payments on necessities such as food, rent, clothing and utilities. And because economic security programs help prevent disruptions to childhood development — when even short disruptions can harm children’s long-term outcomes — they are linked with better economic and health outcomes in adulthood.”