The Child Tax Credit and Family Well-Being: An Overview of Reforms and Impacts
This publication discusses the structure of the Child Tax Credit and its effects on childhood poverty and other indicators of well-being during three distinct phases of the American Rescue Plan.
State-Level Poverty Impacts of the Child Tax Credit in 2021
This fact sheet provides estimates of the impacts of the 2021 Child Tax Credit on child poverty in each state.
What Would 2022 Child Poverty Rates Have Looked Like if an Expanded Child Tax Credit Had Still Been in Place?
The sharp spike in child poverty from 2021 to 2022 represents the largest year-over-year increase on record and is largely the result of the expiration of the 2021 temporary Child Tax Credit expansion. This policy brief examines what 2022 child poverty could have been if an expanded Child Tax Credit had been continued.
Impact of the Expanded Child Tax Credit and its Expiration on Adult Psychological Well-being
This article investigates the effects of the expanded Child Tax Credit and its expiration on psychological distress of adults in households with children and its differential effects by gender, education, marital status, and race and ethnicity. The expanded Child Tax Credit led to a significant reduction in mild - but not moderate or severe - symptoms of psychological distress, especially among female, single, married, and Hispanic adults.
Effects of the Expanded Child Tax Credit on Household Spending: Estimates Based on U.S. Consumer Expenditure Survey Data
In partnership with the Bureau of Labor Statistics, this NBER working paper is the first to use nationally-representative expenditure data to examine the impact of the expanded Child Tax Credit on household spending. Families used the monthly payments to enhance child and household well-being, mainly on food, housing, and child-related goods and services.
The Differential Effects of Monthly & Lump-Sum Child Tax Credit Payments on Food & Housing Hardship
This study investigates the effects of the monthly and the lump-sum expanded Child Tax Credit payments on food and housing hardship in the United States. Families were more likely to use the monthly benefits to purchase food, but the lump-sum benefits to catch up on rent payments.
The Antipoverty Effects of the Expanded Child Tax Credit Across States: Where Were the Historic Reductions Felt?
In this report published by The Hamilton Project at The Brookings Institution, CPSP affiliate Bradley Hardy and CPSP researchers examine the state variation in poverty reduction effects of the 2021 expanded Child Tax Credit. The greatest level of poverty reduction was seen in states with relatively lower costs of living and higher pre-expansion poverty rates.
The Effects of the 2021 Monthly Child Tax Credit on Child and Family Well-Being: Evidence from New York City
This article uses data from two longitudinal studies of well-being in New York City to show that the 2021's expanded monthly Child Tax Credit led to significant declines in experiences of material hardship and multiple hardships, running out of money, and use of food pantries. It did not show evidence of the monthly payments reducing parents’ employment or affecting their mental health.
Research Roundup of the Expanded Child Tax Credit: One Year On
Since the introduction of the monthly Child Tax Credit in July 2021, a continuous stream of research has tracked its impact on children and their families. More than one year on, this updated research roundup reviews evidence through early November 2022, providing a richer understanding of the effects of the expanded Child Tax Credit while in place and the effects of its expiration.
No Evidence the Child Tax Credit Expansion Had an Effect on the Well-Being and Mental Health of Parents
Moderate-to-large cash transfers have been found to improve subjective well-being and mental health. In the case of the recent Child Tax Credit expansion, there was no evidence that it had a significant short-term impact on measures of life satisfaction, anxiety, and depression symptomology among adult recipients and the authors speculate that this may be due to the expansion’s temporary nature.
The 2021 Child Tax Credit Expansion: Child Poverty Reduction and the Children Formerly Left Behind
This policy brief shows how well the expanded Child Tax Credit did in reducing child poverty relative to prior law. It simulates the pre-ARP version of the Child Tax Credit in 2021 data and compares the actual child poverty reduction in 2021 to what it would have been absent the expansion.
Monthly Poverty Remains Elevated in February
Monthly poverty remained elevated in February 2022, with a 14.4 percent poverty rate for the total US population and 16.7 percent for children.
Absence of Monthly Child Tax Credit Leads to 3.7 Million More Children in Poverty in January 2022
Without the Child Tax Credit, the monthly child poverty rate increased from 12.1 percent in December 2021 to 17 percent in January 2022, the highest rate since the end of 2020.
Sixth Child Tax Credit Payment Kept 3.7 Million Children Out of Poverty in December
The sixth Child Tax Credit payment kept 3.7 million children from poverty in December. In absence of a January payment though, the monthly child poverty rate could potentially increase from 12.1 percent to at least 17.1 percent in early 2022—the highest monthly child poverty rate since December 2020.
Research Roundup of the Expanded Child Tax Credit: The First 6 Months
Since the introduction of the first monthly Child Tax Credit payment in July 2021, a continuous stream of research has emerged tracking the impact of this new policy on the lives of children and their families. This round up compiles the range of publicly available information on what we know so far.
November Child Tax Credit payment kept 3.8 million children from poverty
According to our latest projections, the expanded Child Tax Credit kept 3.8 million children from poverty with its fifth monthly payment in November 2021.
October Child Tax Credit payment kept 3.6 million children from poverty
According to our latest projections, the expanded Child Tax Credit kept 3.6 million children from poverty with its fourth monthly payment in October 2021.
Expanded Child Tax Credit continues to keep millions of children from poverty in September
According to our latest projections, the expanded Child Tax Credit kept 3.4 million children from poverty with its third monthly payment in September 2021.
Effects of the Expanded Child Tax Credit on Employment Outcomes
To evaluate the actual employment effects of the expanded CTC, we use two large national datasets to investigate whether there is any evidence that the initial child payments led to reductions in employment. Our analyses do not support claims that the CTC has negative employment effects.
Expanded Child Tax Credit Leads to Further Decline in Child Poverty Rates in August 2021
According to our latest projections, the child poverty rate declined from 11.9 percent in July 2021 (the month featuring the first CTC payment) to 11.5 percent in August 2021. Without the CTC, the monthly child poverty rate in August 2021 would have been 16.2 percent.