Parents are spending new child benefit on food, education. But will Congress keep it? [chalkbeat.org]

By Matt Barnum, Photo: Youngrae Kim, Chalkbeat, November 15, 2021

Earlier this year, Congress decided to try a remarkably straightforward approach to reduce child poverty: give their families more money.

As part of the Biden-backed American Rescue Plan, Congress expanded the child tax credit, which provides cash benefits to most households with children, including some of the country’s poorest families. The IRS has been distributing that money monthly since July.

How well has it worked? Initial data suggests the expanded program has cut child poverty and child hunger substantially — although the impact would be greater if all eligible families were receiving the payments. There’s not hard evidence yet, but previous research suggests that the monthly payments also could boost student learning. Indeed, many low-income families say they have used the funds on their children’s education.

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