Since March 2021, children and families in New York and nationwide have benefited from monthly payments as part of the nationwide enhanced Child Tax Credit. These monthly payments are already proving to make a difference, helping parents and caregivers pay for food, clothing, school-related items or services, and other household essentials.
In the long run, we know that when families with incomes under $25,000 get tax credits like this, children are healthier, have a better chance of excelling in school, graduating from high school and college, and earning more in adulthood.
Unfortunately, the expanded Child Tax Credit expires on December 31, 2021, and unless Congress takes immediate action, more than 3 million New York children and their families will lose these crucial supports come January.
Before the pandemic, more than 800,000 children under 18 lived in poverty in New York State. The expansion of the Child Tax Credit in 2021 has been the largest one-year reduction in child poverty in history. The Build Back Better Act would extend the monthly payments of $250 for children under 18 and $300 for children under six for another year.
Even after 2022, families with little or no earned income will continue to be able to claim the Child Tax Credit. This includes caregivers that have lost their jobs, receive disability payments, or are retired and raising young relatives. The financial stability of so many families raising children must not be negotiated – especially those families who have been excluded from the Child Tax Credit as a result of earning too little. These are the children who will benefit most from the Child Tax Credit; this is where the Child Tax Credit can have the biggest results in reducing poverty. Furthermore, the bill will allow more than 70,000 undocumented children to benefit from the credit – restoring a benefit they lost in 2017 and giving more flexibility to families to use the funds toward food, shelter, or other necessities.
Join us in calling on Congress to pass the Build Back Better Act before December 31st to ensure children and families continue to benefit from the enhanced Child Tax Credit.