The expiration of the child tax credit is likely to push 97,000 New Jersey children back into poverty
For Immediate Release
Contact: Louis Di Paolo (NJPP): 201-417-5049 (mobile) or [email protected]
Celebrating the one year anniversary of the US bailout plan coming into effect new state-level data released by the Economic Security Project highlights how nearly 100,000 children in New Jersey were likely pushed into poverty when the expanded child tax credit expired.
One of the American Rescue Plan’s most successful programs is the Extended Child Tax Credit reduced child poverty in the United States and infused with local economies tens of billions of dollars in additional spending during an unprecedented public health crisis.
When CTC checks started hitting bank accounts in 2021, the life-changing impact of the loan was immediately clear. In six weeks had lack of food dropped by almost a third. The improvements were significant in Black and Hispanic families, who experience the highest rates of food insecurity.
- In the midst of a historic health and economic crisis, CTC payments defied gravity and lowered Child poverty in New Jersey.
- In New Jersey, 1,621,000 Children received the Expanded Monthly Child Tax Credit on average $418 per family.
- CTC payments lifted nearly 4 million children out of poverty each month. New Jersey faces a sharp rise in child poverty rates as the US bailout expires. Under the expanded CTC, the ARPA rose 97,000 Children out of poverty in New Jersey, poverty reduction through 8 percent.
- Monthly CTC payments have broader economic implications, bringing millions of dollars into state economies that support family incomes, job growth and local businesses.
- If Congress doesn’t act to reintroduce the expanded child tax credit, New Jersey will lose $514,848,000 in additional economic activity every month.
- Beyond poverty alleviation, the monthly payments helped families in other valuable ways, including:
- Meet basic needs, stay housed and feed their children.
- Reduce stress.
- Rely less on payday loans.
- Returning to work or staying at work.
The Child Tax Credit is one of the most effective poverty reduction programs in American history. Unless Congress acts to make it a permanent part of American life, New Jersey children risk losing access to life-changing services and the entire country will move away from working families, who now more than ever earn government support. To learn more about how the New Jersey Legislature can enact a state-level child tax credit, 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 driving policy change through evidence-based, independent research, analysis and advocacy to advance economic, social and racial justice.
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