Child Poverty Soars After Expiration of Expanded Child Tax Credit

Child poverty rate more than doubled in 2022 after expanded child tax credit expired. Rate is now higher than pre-pandemic levels.
Expanded child tax credit helped lower food insecurity, financial hardship when implemented. These issues resurfaced after it expired.
Tax credit funds were primarily spent on household necessities like rent, childcare, groceries.
Credit was controversial as it went to families with little/no earnings. No evidence it discouraged employment.
Potential for bipartisan compromise on a modified version of the expanded credit in future negotiations.

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Relevant topic timeline:

9/12/2023

Census Data Shows Declining Incomes and Rising Poverty in 2022 as Pandemic Aid Ended

The COVID-19 pandemic and the expiration of pandemic-era programs have led to a rise in child poverty and an increase in the overall poverty rate in the US, while household income has fallen and inflation has soared, according to the US Census Bureau.

9/12/2023

US Household Incomes Fall Most Since 2010 as Inflation Outpaces Wages

US household income fell by the most in over a decade in 2022, showing the impact of rising costs and the expiration of pandemic relief programs, with the median income dropping 2.3% and marking the third consecutive annual decline, contributing to concerns about the financial well-being of American families.

9/14/2023

Minnesota Household Incomes Fall, Poverty Rises in 2022 as Pandemic's Economic Effects Linger

The lingering effects of the pandemic have led to a 2% decrease in household income in Minnesota, causing poverty rates to rise, with 9.6% of the population now living below the federal poverty threshold.