Child Tax Credits Are Here! Hooray!
Nearly 40 million families across the country today got a nice surprise in their bank accounts — $300 for each child under five and $250 for every kid under 18 — as the second round of monthly child tax credits went out today. Which is, it turns out, really good news for kids who like eating food.
Today, about 40 million families will receive their second monthly payment as part of the expanded Child Tax Credit… https://t.co/aGOkOJMYYT— Joe Biden (@Joe Biden)1628863080.0
Government surveys conducted before and after the last child tax credits went out found that the first child tax credit installment led to a significant decrease in food insecurity for kids across the country.
The survey shows introduction of the CTC coincided with a drop in food insufficiency in households with children. It also showed that in those households, there was a drop in difficulty paying weekly expenses.
Several changes were made to the child tax credit as part of the American Rescue Plan, signed in March 2021.
The program provides the tax credit to all families with children, including those who are not required to file a federal tax return.
While "common wisdom" says that it would be better to earmark funds for specific purposes, like food or utilities, many studies have found that "just giving people cash" is much more effective in terms of actually helping them. Because families know what they need and are smart enough to spend it on the right stuff. Plus it actually saves money thanks to the lack of administrative costs.
Sadly, the credits are not permanent — but it sure would be nice if we could all agree that kids being able to eat food is good and keep them going forever!
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Robyn Pennacchia is a brilliant, fabulously talented and visually stunning angel of a human being, who shrugged off what she is pretty sure would have been a Tony Award-winning career in musical theater in order to write about stuff on the internet. Follow her on Twitter at @RobynElyse