Child tax credit expiration likely pushes 97,000 New Jersey children back into poverty
For immediate release
Contact: Louis Di Paolo (NJPP): 201-417-5049 (mobile) or [email protected]
On the one-year anniversary of the US bailout taking effect, new state-level data released by the Economic Security Project highlights how nearly 100,000 New Jersey children were likely pushed into poverty when the expanded child tax credit expired.
One of the most successful programs of the US bailout, the expanded Child Tax Credit, has reduced child poverty in the United States and injected local economies with tens of billions of dollars in additional spending. during an unprecedented public health crisis.
When CTC checks started hitting bank accounts in 2021, the impact of credit on life was clear right away. In six weeks, food insufficiency had decreased by almost a third. Improvements have been significant among Black and Latino families, who experience the highest rates of food difficulties.
- Amid a historic economic and public health crisis, CTC payments have defied gravity and lowered child poverty in New Jersey.
- In New Jersey, 1,621,000 children received the expanded monthly child tax credit, an average of $418 per family.
- CTC payments lifted nearly 4 million children out of poverty each month the payments were made. New Jersey is expected to see a sharp rise in the child poverty rate as the US bailout expires. As part of the expanded CTC, ARPA raised 97,000 children out of poverty in New Jersey, reducing poverty by 8 percent.
- Monthly CTC payments have broader economic impacts, injecting millions of dollars into state economies that support family incomes, job growth and local businesses.
- Unless Congress acts to restore the expanded child tax credit, New Jersey stands to lose $514,848,000 in additional economic activity each month.
- Beyond poverty alleviation, monthly payments have helped families in other valuable ways, including:
- Meet basic needs, stay housed and feed their children.
- Reduce stress.
- Rely less on payday loans.
- Resume or stay at work.
The Child Tax Credit is one of the most successful anti-poverty programs in American history. Unless Congress acts to make it a permanent part of American life, New Jersey’s children risk losing access to life-changing benefits, and the whole country will drift away from working families who , now more than ever, deserve government help. . To learn more about how New Jersey lawmakers can enact a child tax credit at the state level, read NJPP’s February 2022 report, Making New Jersey More Affordable for Families: The Case for a State Child Tax Credit.
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New Jersey Policy Perspective (NJPP) is a nonpartisan think tank that promotes policy change to advance economic, social, and racial justice through independent, evidence-based research, analysis, and advocacy.
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