One Year On: What we know about the expanded Child Tax Credit
A continuous stream of research has tracked the impact of the 2021 Child Tax Credit expansion and its 2022 expiration. The weight of the evidence is clear: while in place, the expanded Child Tax Credit reached the vast majority of families; shored up family finances amidst the COVID-19 and economic crisis; helped reduce child poverty to the lowest level on record; decreased food insufficiency; increased families’ ability to meet their basic needs; and had no discernable negative effects on parental employment.
Since its expiration, many families with children have seen a reversal of fortune directly attributable to the loss of the credit—including lower disposable income and increased poverty, food hardship, and financial strain—posing an ongoing challenge for families nationwide.
Key Findings
ACCESS: Monthly payments reached most, but newly-eligible faced access challenges
Update: Most families received monthly payments, but data on who may have missed out remains limited.
Lessons from monthly payment rollout can inform future cash delivery efforts.
INCOME: Monthly payments buffered family incomes amidst an uncertain economy
Update: Families with children saw income gains lost after Child Tax Credit expired.
POVERTY: The expanded Child Tax Credit led to historic reductions in child poverty
Update: Child poverty rose quickly in 2022 after monthly Child Tax Credit expired.
EXPENDITURES: Families spent the monthly Child Tax Credit on food and basic needs
Update: Families struggled to meet basic needs after monthly Child Tax Credit expired.
FOOD SECURITY: Monthly Child Tax Credit reduced food insufficiency
Update: Food hardship rose after monthly Child Tax Credit expired.
FINANCIAL HARDSHIP: Monthly payments may have reduced financial hardship
Update: Financial hardship rose after Child Tax Credit expired.
PAYMENT TYPE: Families used the monthly payments and lump-sum payment differently
Update: The monthly versus lump-sum payments appear associated with different types of effects.
EMPLOYMENT: There is no evidence that the monthly payments reduced employment
Update: Employment data show no changes while monthly payments were in place.
Some families found the monthly payments to be an employment support.
EQUITY: The expanded Child Tax Credit matters for racial equity
Update: Communities of color among those most impacted by Child Tax Credit expiration.
This is an update to the original Child Tax Credit research roundup, published in December 2021, that documented what we knew from research available after the first six months. We invite researchers to share additional sources for incorporation into future updates.