How to End Child Poverty for Good

Early childhood income impacts health, development, and future prospects. Cash transfers have positive effects. The 2021 expanded Child Tax Credit (CTC) significantly reduced child poverty but expired. A fully refundable and inclusive CTC can make a lasting impact, benefiting families with low incomes and society. Excluding those with Individual Taxpayer Identification Numbers and inaccessible filing processes should be addressed. Monthly payments and simplified IRS portals can improve access. CLASP urges Congress to make the CTC fully refundable on a permanent basis. A fully refundable credit is important not only because it reaches families with the lowest incomes, but also because payments are automated and predictable.

A Better Poverty Measure Shows the Impact of Public Policies

The official poverty measure was established in the 1960s and remains largely unchanged. It uses a basic food cost multiplier but doesn't account for vital public programs. The Supplemental Poverty Measure (SPM), introduced in 2011, is more comprehensive, including refundable tax credits and in-kind benefits, and deducts various expenses. It reflects the reduction in child poverty in 2020. However, both measures have limitations, and a recent panel recommends improvements to the SPM, elevating it as the Principal Poverty Measure (PPM). While the PPM provides a better assessment of resources and needs, it won't address all aspects of poverty, such as access to higher education and societal stigma.

CLASP is dedicated to collaborating with individuals experiencing poverty to tackle these multifaceted issues, echoing President Johnson's call for a war on poverty to empower people to fulfill their potential and share in the nation's promise.

What do We Expect to See in the 2022 Census Poverty, Income, and Health Insurance Data?

In the 2022 Census data, expect a rise in child and overall poverty rates due to the expiration of the expanded Child Tax Credit (CTC). However, record low rates of uninsurance may be seen, thanks to Medicaid coverage and tax subsidies. Child poverty, which dropped significantly in 2021 due to the CTC, is expected to increase, particularly among Black, Latino/Hispanic, and immigrant children.  Administrative hurdles disproportionately affect people of color and children. Quick federal action during the pandemic demonstrated the potential to combat poverty, emphasizing the need for targeted investments to address disparities and promote economic security.

Poverty, rooted in systemic biases, is a policy choice that can be mitigated with comprehensive solutions.