BCHC supports recommendations to improve Child Tax Credit and reduce child poverty
October 2024
In a letter to the Chair, Vice Chair, and Members of the Working Families Tax Team, 92 national organizations (including Big Cities Health Coalition) and 154 state and local organizations signed a letter to encourage the Working Families Tax Team to meaningfully and permanently improve the Child Tax Credit (CTC) during the 2025 tax negotiations. Recommendations noted below aim to ensure that those left behind and most in need can receive the full credit.
The child poverty rate increased to 13.7% (9.96 million children) in 2023, up from 12.4% (9 million children) in 2022 and more than double compared to 2021 at 5.2% (4 million children). The jump from 2021 to 2022 occurred when the expanded CTC under the American Rescue Plan Act (ARPA) expired.
With current structure of the CTC, there is substantial inequity. 1 in 3 children in rural areas are left out of the full credit because their families’ incomes are too low (compared to around 1 in 4 in metro areas). Similarly, 38% of Black children, 40% of Latino children, and almost a half of all children living with a single mom were ineligible for the full credit due to insufficient income.
We should support our nation’s children and not punish children or babies for the circumstances or zip code in which they are born. The upcoming negotiations and expiration of the existing CTC maximum credit under the current statute present an opportunity for Congress to prioritize policy choices that make significant headway towards reducing child poverty.
We encourage the Working Families Tax Team to include the following policies in a permanently expanded CTC:
Child poverty is a policy choice – and Congress has the power to reduce it. An expanded CTC is a proven method to lower child poverty and has widespread support from voters across the political, economic, and geographic spectrums.
Addressing economic insecurity not only impacts the lives of children and families now, but also has far-reaching consequences for the long-term wellbeing and prosperity of our nation.
