The 2021 U.S. census shows that rates of children in poverty, when assessed with the Supplemental Poverty Measure, declined from 9.7% of the population to 5.2% — a stunning 46% reduction vs. 2020. This decline represents 3.4 million children and is mostly attributable to expanded Child Tax Credit (CTC) benefits implemented under the American Rescue Plan.
However, those expired in December and were not extended via the Inflation Reduction Act. Sen. Mitt Romney has proposed the Family Security Act 2.0 as a legislative fix. It would provide monthly benefits of $350 for each young child (0-5 years) and $250 for those 6-17 years. Sadly, however, he does not see this measure as an effort to combat poverty, but only as strengthening marriage and encouraging larger families. Accordingly, his plan penalizes the most vulnerable — single parent and very-low-income families vs. families with two parents and/or earning up to $400,000/year. Similarly, his proposed funding mechanisms reduce other supportive benefits such as the Earned Income Credit.
Rescue Plan data show that families used the expanded CTC benefits for basic necessities such as food, rent, child care, debt reduction and school expenses. This improved financial stability for children will substantially improve their ability to break intergenerational cycles of poverty by reducing malnutrition and housing instability, while improving school success and future earnings
Accordingly, we applaud Sen. Romney’s efforts, but also encourage him to draft a version 3.0 that addresses these structural concerns, and to bring his Republican colleagues on board.
We have seen what Child Tax Credit benefits can do, especially when reaching the most vulnerable among us. We must put our money where our mouth is and invest in our children, our families, and our country’s future.
Ellen Brady, Murray