John,

Expanding the Child Tax Credit is popular and is proven to dramatically reduce child poverty levels. So why are conservatives trying so hard to kill it with poison pill amendments?

When Congress passes tax cuts for multibillion dollar corporations, they often make them retroactive to cover previous tax years. In the Tax Relief for American Families and Workers Act, passed 357-70 by the House of Representatives, a “lookback” provision that’s intended to help low-income wage earners with fluctuating incomes is at risk of being taken out of the Senate version.

Low-income families often experience a temporary loss in wages―to care for a sick family member, welcome a new child, or because of layoffs or reduced hours―and this “lookback” provision is critical, because it allows them to qualify for a higher Child Tax Credit based on the previous year's income. There has been bipartisan support for a “lookback” before and about half of the families who would benefit from the lookback provision have either a young child (under age 3) or a family member with a disability.¹

While the bipartisan tax package’s version of the expanded Child Tax Credit is temporary and not as robust as the one in 2021, it would still lift 400,000 children out of poverty in tax year 2023, rising to 500,000 above the poverty line in 2025.² It would also add much needed income to about 16 million children in families struggling to meet basic needs.³

Congress must act now. Send a letter to your Senators urging them to reject bad amendments and pass the House version of the expanded Child Tax Credit now.

A single mother with one child who earns $25,000 as a child care worker in 2024 would receive a $1,900 CTC. But, if this same parent has to cut their hours to care for a sick child or loved one the following year, seeing their earnings drop to $10,000, they would see their CTC dramatically reduced without the lookback provision. They would be punished for having to take time off to care for a loved one with their CTC dropping to only $1,125. But the inclusion of the lookback in the expanded CTC would allow them to get a higher tax credit for their child just when they need it the most.

Low-income workers with wage fluctuations should not be used as political pawns during an election year. It is pretty clear that some policymakers are looking for excuses to delay important tax policy changes for their own political benefit.⁴ It’s time for the Senate to follow in the bipartisan footsteps of the House and pass the expanded Child Tax Credit as-is and send it to President Biden’s desk now.

Join us in calling on the Senate to pass the House version of the extended Child Tax Credit and give working families the relief they need now.

Thank you for all you do,

Deborah Weinstein
Executive Director, Coalition on Human Needs

¹ Modest “Lookback” Provision in Bipartisan Child Tax Credit Expansion Helps Working Families Who Temporarily Face Tough Financial Times
² Reported Proposal to Expand Child Tax Credit Would Lift as Many as 400,000 Children Above the Poverty Line
³ About 16 Million Children in Low-Income Families Would Gain in First Year of Bipartisan Child Tax Credit Expansion
⁴ Republicans’ objection to lookbacks adds up to gridlock