Nearly four million more children are living in poverty two months after the expanded Child Tax Credit (CTC) expires, according to a report by Columbia University’s Center on Poverty and Social Policy.
The White House said in June 2021 that CTC listing would help provide children “a lifeline out of poverty” and projected related measures had the potential to reduce child poverty in America by 50. %. The monthly payments of up to $300 per child were part of President Joe Biden’s US bailout package, aimed at providing families with financial and economic relief during the COVID-19 pandemic.
According to the Columbia University report, Latino and Black children saw the largest increase in poverty, with those communities seeing an increase of 7.1 and 5.9 percentage points, respectively, from December 2021 to January. 2022. In fact, the report notes that the overall child poverty rate increased by 41% during this period.
A credit card consolidation loan could help you save if your finances have been affected by the expiration of extended CTC payments. Visiting Credible can help you compare debt consolidation options to find the best personal loan rates for you, based on your credit score and credit history.
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Child poverty rate plummeted after CTC payments rolled out, report says
The first one The maximum amount of the child tax credit has been increased from $2,000 for eligible taxpayers to $3,600 per child up to age 5 and $3,000 per child under 18. child, depending on his age.
In January, a group of Senate Democrats wrote a letter to President Biden and Vice President Kamala Harris, urging them to restore the expanded CLC through the Build Back Better Act (BBB). They described the payments as “the biggest investment in American families and children in a generation.”
The Columbia University report says increased CTC payments have lifted many children out of poverty. For example, he noted that the child poverty rate was 15.8% in June 2021, just before the increases started rolling out. At the start of these payments, that rate fell to 11.9% after 39 million families began receiving the checks, according to the study.
Families who are no longer receiving monthly CTC payments and are looking for ways to prepare for unexpected expenses might consider a high-yield savings account. Building your savings through just one could help you save more money over time. Credible can help you find a provider of savings bank accounts with high yields and interest rates that will boost your savings.
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Nearly 10 million children could fall below poverty line without CTC expansion: report
Before the expanded CTC payments expired, a report by the Center on Budget and Policy Priorities predicted that nearly 10 million children would fall back into poverty without an extension of the expansion. He added that these payments were an important step in reducing “racial income disparities”.
“Extending the expanded credit and making the Child Tax Credit permanently available to low-income families would improve the lives of children in the short and long term and benefit society as a whole in important ways,” the report said. report.
If you are looking for ways to pay off debt and save money after the extended CTC payment expiration, a personal loan might be an option to consider. Personal loan rates in 2022 are much lower than the previous year and can be used to consolidate debt. Use an online marketplace like Credible to ensure you get the best rate and the best lender for your needs.
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