New Data Show That the Child Tax Credit Fueled a Substantial Reduction in Child Poverty
Newly released data from the U.S. Census Bureau reveal a major public policy success. The nation’s child poverty rate dropped by half in 2021, from an estimated 10% in 2020 to a historic low of 5%. This was primarily thanks to the expanded child tax credit, according to the Supplemental Poverty Measure (SPM).
While the Census Bureau updates the SPM and the official poverty measure each year, the Annie E. Casey Foundation is an advocate for using the SPM as it accounts for a broader range of family resources such as:
- noncash benefits (e.g., food and housing assistance);
- stimulus payments; and
- tax credits.
It also factors in necessary household expenses and regional variation in cost of living.
Source: Annie E. Casey Foundation