FOR IMMEDIATE RELEASE
February 8, 2021
Maddy McDaniel, Communications Director
ADDING CHILD TAX CREDIT TO COVID RELIEF PACKAGE COULD CUT DEEP POVERTY BY HALF, HELP ECONOMY RECOVER
The Proposed Tax Credit Of Up To $3,600 A Year Could Reduce Deep Poverty By Half
WASHINGTON, D.C. — Today, Congressman Richard Neal (D-MA-1) introduced legislation to supplement the American Rescue Plan that would provide as much as $3,600 in aid per child to millions of American families. Analysis shows that the legislation would significantly reduce child poverty and would aid families working hard to regain their footing during the Covid pandemic.
“This coronavirus crisis is an emergency and it’s having a devastating impact on families with kids,” said Zac Petkanas, senior advisor to Invest in America. “This legislation would help address the fact that in the richest country in the world, one in four children faced food insecurity. This kind of public investment in the Covid relief package would serve as a crucial first step toward giving all children families the support they need to get back on their feet.”
The United States has one of the highest rates of child poverty in the developed world. Today’s proposed child tax credit, which mirrors a provision in President Biden’s proposed American Rescue Plan, has the potential to:
Provide credit for 27 million children whose families do not currently receive full credit because their parents don’t earn enough. That includes about half of all Black and Latino children, whose communities have been disproportionately affected by the Covid pandemic.
Lift 3 million people above the poverty line, 10 million children above or closer to the poverty line, and 770,000 children out of deep poverty.