WASHINGTON (AP) — Never before in a presidential election cycle has there been so much discussion about the child tax credit — a tool that many Democrats and Republicans have advocated to lift children and juvenile families out of poverty.
Just three years ago, the child poverty rate fell significantly when President Joe Biden’s administration increased the child tax credit and made even the poorest families eligible. But the expansion only lasted a year. Congress rejected an extension.
There is hope for another tax credit augment regardless of who wins Tuesday’s presidential election, but tension remains over who should qualify.
Democrats are seeking a massive — and costly — expansion of the social safety net. Vice President Kamala Harris has proposed a significant augment in the child tax credit as part of her presidential campaign. Instead of providing the benefit through a tax refund, it wants to send monthly payments to parents, including those who don’t work and don’t pay income taxes. Republicans have expressed support for increasing the tax credit, but also worry it could be an incentive for some parents not to work.
Despite economic prosperity, child poverty remains widespread in the United States. Children under 5 are the age group most at risk of poverty and eviction, and more than one in six youth under age 18 live below the federal poverty line. Meanwhile, raising a child is becoming increasingly exorbitant as the cost of food, childcare and housing rises.
“Expanding the child tax credit is the most effective option for reducing child poverty in America,” said Christy Gleason of Save the Children, a global humanitarian organization focused on the well-being of children. “Families are demanding it. The voters demand it.”
Currently, the child tax credit gives families a $2,000 discount on their tax bill for each child under age 17 they care for. Families who pay less than $2,000 in income tax receive a smaller benefit, while parents who do not work receive none.
Harris has put expanding tax credits at the center of her campaign message on the economy. Her vice president, Minnesota Gov. Tim Walz, has, among other things, the passage of a state child tax credit on his resume.
Former President Donald Trump doubled the amount of the child tax credit during his time in office. His presidential campaign declined to provide details about his plans for the child tax credit, other than to say he would consider a significant augment.
Trump’s running mate, Ohio Senator JD Vance, raised the possibility of increasing the child tax credit to $5,000 in an interview on CBS’s “Face the Nation” to lend a hand more parents with their children can stay home. But some Republicans have been cautious about extending it to parents who don’t work outside the home.
After voting against a child tax credit bill in August, Senate Republican leader Mitch McConnell of Kentucky said the benefit for stay-at-home parents would amount to “cash assistance rather than relief for working taxpayers.”
The stakes in this debate are particularly high for parents who cannot work due to disability, caring for children or elderly parents. Many have been excluded from the benefit because they do not earn any income.
Kandice Beckford, 25, is among them. She was working as a medical assistant at Howard University Hospital in Washington, D.C. last year when her pregnancy made her too unwell to work and forced her to quit.
She was homeless even as she earned her paycheck, shuttling between the homes of friends and relatives. When she left the hospital after giving birth in April, she still had no lasting home. There was little she could do other than contact social services — and pray.
“I’m a religious woman, so I really tried to leave most of it in God’s hands,” Beckford said. “It was worrying, but I tried not to let it control my life and my thinking.”
Beckford’s story highlights the financial insecurity that many families – and especially single mothers – face when raising children. If she doesn’t return to work this year, she won’t be eligible for benefits.
The Harris proposal would make every household eligible regardless of income and provide $6,000 in benefits to families with newborns and $3,600 for each additional child thereafter. She wants to pay it out in monthly installments so that families don’t have to wait for tax returns. Harris plans to raise taxes on corporations and the wealthiest Americans to pay for the plan, including by phasing out tax credits introduced under the Trump administration in 2017.
As president, Trump doubled the child tax credit from $1,000 to $2,000 and raised the income cap so families earning up to $400,000 could receive the benefit. The child tax credit passed under his administration expires at the end of next year. If the next Congress and president fail to act, the credit will drop to $1,000 per child.
In 2021, President Joe Biden expanded the credit to $3,000 per child — and $3,600 for children under age 6 — as part of the Inflation Reduction Act, making it available to every household with citizen children, regardless of their income. This halved child poverty by one measure. But those gains were erased when it expired.
In September, Beckford finally entered a shelter for women and their children in Maryland and was connected to a social service agency that helped her with many of the costs that come with a fresh baby, including a stroller and car seat, clothing and toys.
When asked about her dreams for her daughter Inari, Beckford ticked off a list: She wants Inari to be smarter than her and “receive the best education possible.” Inari is already exceeding her developmental milestones and Beckford is excited about her growth.
Her final wish sounded something fundamental, but it proved unattainable for Beckford and so many other American mothers.
“I want her to have a stable life,” Beckford said.
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Associated Press writer Josh Boak contributed to this report.
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