EPPN Series on Children: Child Poverty: A Terrible Status Quo

May 12, 2022

Office of Government Relations

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Loving God, your Son told his disciples to become like little children. Lead us to work for the welfare and protection of all young people. May we respect their dignity that they may flourish in life, following the example of the same Jesus Christ our Lord. Amen. -A Prayer for Children from the Church of England

The statistics on child poverty are sobering. According to the U.S. Census Bureau, in 2019 (the last year for which reliable Census data exists) the United States was home to more than 10 million children living each day below the poverty level. The COVID-19 pandemic has made accurate data collection more difficult, but nongovernmental researchers have compiled estimates of more contemporary child poverty rates than the Census can provide. In mid-to-late 2020 Columbia University’s Center on Poverty & Social Policy tracked child poverty rates on a monthly, rather than annual, basis, and found that from May to October 2020 more than 2.5 million children fell into poverty because of the reduction in the federal emergency economic support provided by the CARES Act in the early days and months of the pandemic.

The Expanded Child Tax Credit

Lawmakers have worked for years to address the problem of child poverty from a variety of angles. Policies currently exist that provide nutrition assistance, housing support, and other forms of in-kind benefits to children and families in low-income households. The Episcopal Church strongly supports these policies and advocates for their further expansion because they play a demonstratively positive role in alleviating extreme deprivation among children. Nonetheless, they are not a silver bullet. Much more work needs to be done to tackle child poverty head-on.

The American Rescue Plan Act implemented the enhanced Child Tax Credit, which increased the annual Child Tax Credit from $2,000 per child to a maximum of $3,600 per child age 5 or younger and $3,000 for children ages 6 to 17. The new law also allowed parents to receive the credit monthly for half the year, with the rest being paid out through their annual tax refunds.

Data shows that the expanded Child Tax Credit led to a substantial decrease in child poverty. The Columbia University Center on Poverty and Social Policy found that the first payment, sent out in mid-July 2021, lifted a staggering 3 million children out of poverty overnight. By the end of the year, the enhanced benefit kept nearly 4 million children out of poverty.

The CTC expansion was one of the most consequential and impactful anti-poverty policies implemented by Congress in recent memory. The implications of the policy’s expiration have also been sharp. Columbia University’s Center on Poverty and Social Policy recently found that 3.4 million children slipped into poverty between December 2021 and February 2022 due to the end of the enhanced Child Tax Credit monthly payments.

The Child Tax Credit, one of the most successful policies against child poverty in modern history, should be made permanent. In 2018, General Convention was on firm ground when it directed the Church to “oppose federal cuts in tax credits that benefit low-income families including the…Child Tax Credit…” The Office of Government Relations will continue to fulfill that mandate from General Convention and advocate for the continuation of this transformative benefit. Our nation’s children deserve nothing less.

Next in the series:

EPPN Series on Children: Kids and Climate Change