What we know from the first 6 months of the expanded Child Tax Credit
Since the introduction of the first monthly Child Tax Credit payment in July 2021, a continuous stream of research has emerged tracking the impact of this new policy on the lives of children and their families. This roundup compiles the range of publicly available information on what we know so far about who has received it, how families are using it, and how families have fared since the monthly payments began. The evidence is reviewed and organized across eight central themes: access; income; poverty; spending; food; financial stress; employment; and equity.
The weight of the evidence is clear: in its first six months, the expanded Child Tax Credit has shored up family finances amidst the continuing crisis, reduced child poverty and food insufficiency, increased families’ ability to meet their basic needs, and has had no discernable negative effects on parental employment.
Key Findings
The expanded Child Tax Credit has reached the overwhelming majority of children, but outreach to newly-eligible families with low incomes should still continue
Monthly payments are buffering family incomes amidst the continuing COVID-19 crisis
Monthly payments are reducing child poverty
Families are spending the Child Tax Credit on food and other basic needs
Monthly payments are reducing food insufficiency
Monthly payments may be reducing financial stress and other hardships
There is no evidence that indicates the monthly payments are reducing employment
The expanded Child Tax Credit matters for racial equity
This round up is a living document; findings reflect information available through mid-December 2021 and immediately evident short-term effects. New research is released regularly and this paper will be updated in future months. Longer-term impacts of this policy change on children and their families, particularly if the expanded Child Tax Credit is continued as proposed through the current Build Back Better legislation, may also evolve and expand over time. We invite researchers to share additional sources for incorporation into future updates.