Following historic highs driven by pandemic-related spending, federal expenditures on children continued to decline in 2023 and are expected to decline below current levels as a share of GDP by 2034, Urban Institute researchers find.
Federal expenditures per child were about $8,990 in 2023, down substantially from a pandemic-related high of $11,690 in 2021. The decline was primarily driven by decreasing federal tax provisions—notably, the pandemic-related economic impact payments (stimulus checks) and the temporary increase in the child tax credit.
Spending on nutrition fell in 2023, following a 2022 peak that resulted primarily from pandemic-related expansion of benefits and increases in need.
Nutrition spending in real dollars is expected to decline over the next decade, as they are primarily funded with discretionary spending and so compete annually with other discretionary programs.
In 2023, approximately 9 percent of federal outlays (or $566.7 billion of $6.1 trillion in outlays) was spent on children. The children’s share of federal outlays is projected to decline to six percent over the next decade, while interest payments on the national debt are expected to grow from 11 to 17 percent.
“Public and private investments in children today can benefit the nation and improve the quality and strength of tomorrow’s workforce and economy, more than paying for themselves over time by increasing future tax revenues and reducing future government expenditures,”
the researchers write.
Explore the webpage for additional evidence from the Kids’ Share research team. If you have questions or would like to connect with the research team, please email me directly.
Sincerely,
Amy Elsbree Associate VP for Strategic Communications and Outreach 202-261-5513 [email protected]
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