Congress passed the American Rescue Plan Act (ARPA) in 2021 in response to the human and economic damage caused by the COVID-19 pandemic. It was a complicated piece of legislation that included aid to state and local governments as well as individuals and families.
One of the most important—if temporary— parts was an expansion of the Child Tax Credit (CTC), which provided monthly payments to families with children based on the age and number of children. During the all too brief time that it was in effect, child poverty dropped with record speed in 2021, reaching an all time low of around five percent. Workforce participation of parents and caregivers increased while the expanded CTC was in effect.
Research showed that families spent most of the additional income on things you might expect food, housing costs, child care, utilities. People who study child well-being have long regarded economic security as a protective factor that reduces the probability of maltreatment and abuse. According to a study published in the Journal of the American Medical Association, receipt of CTC payments were associated with a decline in maltreatment reports and emergency room visits.
Statistics alone aren’t the whole story. Between July and December 2021, I was part of a group effort to collect stories from West Virginia parents and caregivers about what effect the CTC had on their families. The results were about as basic as you can get.
One family was finally able to fix a broken toilet, which is kind of a big deal. Some children got beds of their own for the first time in their lives. Other parents were able to buy tires or repair vehicles so they could go to work. Another bought enough firewood to get through the winter. Others bought clothes and shoes for school. Some children were able to take part in sports, extracurricular activities, or go to lessons they would otherwise have missed.
You get the idea. If you were in one of those families, you can probably add to the list.
Unfortunately, in January 2022, Congress allowed the expanded CTC to expire. This ended much needed assistance for millions of working class and low-income families. The child poverty rate more than doubled in 2022.
Now there’s a chance to undo at least some of that damage. Despite extreme political polarization, the Republican-led US House of Representatives approved a bipartisan tax plan that would partially expand the CTC again. To her credit, Republican Representative Carol Miller, who represents southern West Virginia, supported the measure. It passed the House by an incredible 357-70 margin.
This expansion of the CTC is not as generous or inclusive as the 2021 version, but it could benefit 16 million low-income families and lift as many as 500,000 children out of poverty by 2025.
The bill is now stalled in the Senate but it’s not dead yet. In an era of razor thin majorities, every vote counts. It would probably have more of a positive proportional impact in West Virginia than in most other states.
West Virginia’s senators could help move it across the finish line. This time around I hope they do.
(This appeared as an op-ed in the Charleston Gazette-Mail.)
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