December 06, 2022
At present, Congressman Adam Schiff (D-Calif.) despatched a letter to Home Speaker Nancy Pelosi and Home Majority Chief Steny Hoyer urging the Home to increase the expanded Baby Tax Credit score – which has the power to elevate thousands and thousands of California’s most economically-marginalized youngsters out of poverty – earlier than Republicans take management of the Home in January.
The Baby Tax Credit score’s month-to-month funds are utilized by thousands and thousands of households in California and throughout the nation to pay for requirements together with meals, lease, academic bills, and baby care. The American Rescue Plan of 2021 critically expanded its attain and advantages, rising month-to-month funds and the variety of eligible recipients by eradicating an earnings requirement that saved the lowest-income households from claiming the total credit score. Between July and December 2021, baby poverty was slashed by practically 40 % to achieve a report low of 5.2 %, and three million youngsters have been lifted out of poverty in a single month.
Nonetheless, the enlargement expired in December 2021 on account of Republican opposition, putting nearly 10 million children nationwide at risk of falling deeper into poverty – disproportionately youngsters of shade and youngsters within the lowest-income households, like single-parent households. As Home Democrats put forth their largest legislative priorities over the following 4 weeks, Schiff is urging that an extension of the expanded Baby Tax Credit score is included in any year-end bundle.
“Whereas this Congress has delivered on many priorities, we’re confronted with the selection to proceed important programming that households desperately want, just like the Baby Tax Credit score. At a time when thousands and thousands of People are struggling to make ends meet and the costs of on a regular basis necessities are at report highs, it’s our accountability as Members of Congress to cross daring laws and codify insurance policies that can in the end assist scale back poverty, homelessness, and meals insecurity for American youngsters and employees,” Schiff stated within the letter.
The expanded Baby Tax Credit score supplied a lifeline for greater than 65.6 youngsters nationwide, and practically 8 million in California. In response to information from the Middle on Funds and Coverage Priorities, because the enlargement expired, an estimated 19 million children nationwide and 2.4 million in California have been unable to claim the full payment.
Particularly, the Baby Tax Credit score enlargement:
- Elevated the tax credit score from $2,000 to $3,600 per baby ages 0-6
- Elevated the tax credit score from $2,000 to $3,000 per baby ages 6+
- Raised the age restrict from 16 to 17
- Made the tax credit score totally refundable and eliminated the earnings requirement
“This Congress and the Biden Administration have applied historic, progressive packages which have confirmed to decrease baby poverty. At a time of huge financial hardship, we’re confronted with a selection – to strengthen and develop these packages, or just allow them to expire. In doing the latter, we miss a vital alternative to spend money on our youngest and most weak members of society and their households,” the letter continues.
Schiff’s efforts are endorsed by the Nationwide Training Affiliation, MomsRising, and Zero to Three.
Click on here to learn the letter or learn the total textual content under:
Expensive Speaker Pelosi and Chief Hoyer:
Now we have a chance to make generational progress for our nation’s working households and youngsters throughout the nation within the subsequent 4 weeks. And we should take it by extending the expanded Baby Tax Credit score.
All through the 117th Congress, the Biden Administration and Congressional Democrats have made it clear that bringing monetary aid to American employees and households has been our high precedence. Now we have delivered on our guarantees to the American individuals time and time once more by way of historic and daring investments in schooling, childcare, and our economic system and we should proceed to battle for the welfare of kids, households, and communities throughout the nation.
As you think about any potential end-of-year bundle and tax extender payments to be delivered to the Ground for a vote, I write to ask that you simply prioritize extending and making everlasting the expanded month-to-month refundable Baby Tax Credit score as a part of your efforts to assist working class households and proceed to make historic strides to cut back childhood poverty. After we final expanded the Baby Tax Credit score, 3 million youngsters have been pulled out of poverty and baby poverty was slashed drastically by practically 40 % between 2020 and 2021, reaching a report low of 5.2 % in line with U.S. Census Bureau Knowledge. Sadly, that enlargement was not renewed due to Republican opposition.
Whereas this Congress has delivered on many priorities, we’re confronted with the selection to proceed important programming that households desperately want, just like the Baby Tax Credit score (CTC). At a time when thousands and thousands of People are struggling to make ends meet and the costs of on a regular basis necessities are at report highs, it’s our accountability as Members of Congress to cross daring laws and codify insurance policies that can in the end assist scale back poverty, homelessness, and meals insecurity for American youngsters and employees.
Overwhelming proof has proven that the improved CTC undoubtedly benefited American households and helped develop our economic system. Households of over 60 million youngsters acquired CTC month-to-month funds and households have used month-to-month CTC funds to pay for requirements comparable to meals, lease, academic bills, and childcare. In response to month-to-month poverty measure estimates from researchers at Columbia College, the CTC was vital in decreasing the poverty price for youngsters from 15.8 % in June 2021 to 11.9 % in July 2021, lifting 3 million youngsters out of poverty in a single month.
In January of this 12 months, only one month after the expanded baby tax credit score (CTC) expired, practically 4 million youngsters fell again into poverty in a single month—a stark undoing of the numerous progress made. Now, due to the expiration, Middle on Funds and Coverage Priorities estimates that as many as 9.9 million youngsters are susceptible to dropping again under the poverty line or falling even deeper into poverty, together with 7 million youngsters of shade. Poverty charges stay disproportionately excessive for Black, Latino, and American Indian and Alaska Native youngsters. With out swift motion, baby poverty charges will proceed to climb and specialists concern what information will reveal in 2023.
The 117th Congress faces many vital priorities as we think about year-end laws. This Congress and the Biden Administration have applied historic, progressive packages which have confirmed to decrease baby poverty. At a time of huge financial hardship, we’re confronted with a selection—to strengthen and develop these packages, or just allow them to expire. In doing the latter, we miss a vital alternative to spend money on our youngest and most weak members of society and their households.
I strongly urge you to incorporate an extension of the expanded Baby Tax Credit score—an funding that can safeguard the wellbeing of thousands and thousands of American youngsters, and households and shield future generations and our nation—in any year-end bundle.
Thanks for contemplating this request.
Sincerely,
Adam B. Schiff
CC: Chair Richard E. Neal, Home Committee on Methods and Means
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