A missed opportunity to help struggling families

In the wake of the recent passage of the budget reconciliation bill, we wanted to express our disappointment with our representatives in Washington for approving this legislation. As anti-poverty advocates with RESULTS, we care deeply about ensuring that people have the material resources to succeed and thrive, not just survive.

One of our volunteers is a single mom raising three kids. Every dollar she earns has a purpose — feeding her children, keeping a roof over their heads, buying school supplies and keeping the lights on. She works hard, but it's a daily struggle to make ends meet. The rising cost of living and stagnant wages make it increasingly difficult to provide the essentials her children need to thrive.

The Child Tax Credit (CTC), designed to provide financial support to parents and children, offered a crucial lifeline for her and millions of other Americans. The CTC has had broad bipartisan support since 1997 when it became law under a Republican-controlled Congress. But historically, middle and upper-income families always received the largest benefits. The lowest income families have been left out entirely or only received a minimal credit.

The exception was in 2021, when The American Rescue Plan increased the credit amount, paid the credit monthly instead of only at the end of the tax year, and made the CTC fully refundable. This meant that for the first time, low-income families could receive the full credit. The expanded CTC provided enough economic stability in 2021 to reduce monthly child poverty by 30%. In fact, in December 2021, child poverty in the U.S. hit 5.2%, an all-time low. The Center for Budget and Policy Priorities (CBPP) reported that 91% of families earning less than $35,000 per year spent CTC payments on basic needs.

Our volunteer could afford nutritious groceries, enroll her child in after-school programs, and cover unexpected expenses without falling behind. Her kids didn't see her stressed or anxious. With the expanded CTC, she finally felt stable.

Congress let the expanded CTC expire in December 2021. In 2022 child poverty jumped to 16.3%. One year after the expanded CTC expired, nearly 12 million children were again living without consistent access to food, shelter, and clothing. Families must earn $25,000 to $46,000 to receive the full $2,000 credit per child. And the CTC is no longer fully refundable, so low-income families cannot receive the full credit.

The safety net that held our single mom’s family together disappeared. She is back to worrying whether her paycheck will stretch far enough. Congress has the power to bring that sense of stability back.

The Senate version of the reconciliation bill increased the CTC from $2,000 to $2,200, but only for wealthier families. It does nothing for the 17 million children currently left out from receiving the full credit. We want to call attention to this issue and implore Sens. Chuck Grassley and Joni Ernst to consider supporting low-income families. It’s the fair and right thing to do.

Isabella Holland and Peggy Fitch are volunteers with an anti-poverty advocacy organization known as RESULTS. The live in Des Moines.