The American Family Act would move 4 million children out of poverty, but continuing to tie the credit to earnings nearly halves that impact


The American Family Act's (AFA) proposed reforms to the Child Tax Credit (CTC) present an opportunity to transform the credit into one that works for all children, not just those whose parents earn enough to qualify. We find that the AFA would move 4 million children out of poverty and cut deep poverty among children in half. If the CTC’s credit values were to increase, as they do in the AFA, but with the credit still tied to earnings, this impact would be greatly reduced, and children with the fewest resources would again be left out. Even a less generous hike in the credit value alongside the elimination of the earnings requirement would do more to reduce child poverty than a more generous credit tied to earnings.