The Center for Budget and Policy Priorities (CBPP) published on its website that an excellent way to celebrate mothers on their day would be for Congress to expand the Child Tax Credit to 2022 and beyondto make the full credit available to children from families with little or no income.
The group of American experts that analyzes the impact of the budgetary policies of the federal and state government, points out that: “All mothers want their children to have enough to eat, a safe home and a chance to thrive.and the American Rescue Plan’s Expanded Child Tax Credit provided critical financial support to help mothers build this strong foundation for their children, but only for 2021.”
The CBPP notes that mothers bore the brunt of the additional childcare responsibilities created by the pandemic, balancing work, childcare and their children’s school work, in addition to many had to quit their jobs or take unpaid leave to care for their children.
The Center explains that from July to December 2021, the Rescue Plan helped ease financial burdens and stress for mothers by providing advance monthly Child Tax Credit payments of up to $300 per child under age 6 ($250 for children from 6 to 17 years). Low-income families largely used these payments to pay for daily expenses (food, housing, clothing, and utilities) as well as education.
With these benefits, approximately 32 million mothers and more than 65 million children benefited from the expanded Child Tax Credit of the Rescue Plan. But the expansion expired at the end of 2021, leaving mothers exposed to rising costs and inadequate or unaffordable child care without the necessary support that an expanded Child Tax Credit would provide.
The CBPP notes that making the credit fully refundable again would reduce child poverty by about 20%lifting an estimated 2 million children above the poverty line and helping millions more.
A couple of examples demonstrate the impact in 2022:
– A single mother with a toddler and a child in elementary school works part-time on her children’s schedule and earns $15,000 a year as a child care worker. Under current law, she receives a Child Tax Credit of $1,875. If the current credit were fully refundable, you would receive a credit of $4,000 ($2,000 per child).
– A married mother with an infant and toddler, whose spouse cares for their children at home, earns $25,000 a year working full time as a home health aide. Under current law, they receive a Child Tax Credit of $3,000. If the current credit were fully refundable, they would receive $4,000.
CBPP research shows that additional income, such as an expanded Child Tax Credit, help children from low-income families do better in school and live healthier lives, and increase their earning potential as adults.
“An expanded Child Tax Credit would recognize and support the work mothers do every day to provide their children with security, stability and opportunity.”says the CBPP.
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