As tax season concludes and the federal budget reconciliation process begins, Congress is staring at a massive opportunity to deliver critical support to millions of American families by expanding and strengthening the Child Tax Credit.
Our current moment demands bold action. Congress can and should deliver that relief and stability by including an expansion of the Child Tax Credit in its reauthorization of the Tax Cuts and Jobs Act of 2017, which is set to expire at the end of this year.
Millions of individuals and families across America are struggling to pay their bills and to meet their children’s basic needs.
Nonprofit organizations—including the United Way, which I lead—faith-based groups, and others are working hard to support those who are at risk of experiencing food insecurity, homelessness, and other challenges. But, the scale of need is immense, and supporting everyone who requires urgent help requires a far greater response than the efforts of civil society organizations alone. Right now, families need immediate financial relief and long-term stability.
The Child Tax Credit matters because it is one of our most effective tools to lift children and families out of poverty. The most recent Child Tax Credit expansion in 2021 cut child poverty rates nearly in half. And that represented a historic decline to an intractable problem. In fact, the decrease in child poverty from 2020 to 2021 represented the largest single-year decline in child poverty on record. We can attribute that drop largely to the Child Tax Credit.
However, since the expanded Child Tax Credit expired in 2022, we have seen child poverty rates rapidly increase across America again.
Congress got it right before, and they can do it again. We should fully expand the Child Tax Credit so it’s available to all children living in families with low or no income.
For eligible families with children under specific income thresholds, the Child Tax Credit provides support for necessary daily expenses. Research shows that 9-in-10 low-income households spent their 2021 Child Tax Credit on basic necessities or education—which serves to stabilize communities across the country and spur local economic activity, especially in rural and underserved areas.
The Child Tax Credit has proven its potential impact on the national economy as well. I have seen firsthand the difference that this credit makes for all families with children regardless of socioeconomic status. The Niskanen Center found that extending the Child Tax Credit would boost consumer spending by $27 billion over a 12-month period and would help to support the equivalent of half a million private sector jobs.
There are more than 900 local United Ways nationwide and United Way has a presence in every congressional district. Through our support to 211—the human services hotline—and the nearly 17 million requests made to the three-digit line last year, we know that individuals and families are struggling with basic needs, such as assistance with housing, utilities, and food.
The Child Tax Credit is not a partisan issue. Over the past 26 years, Republicans and Democrats in the House, the Senate, and the White House have supported its expansion.
In the current Congress, many key voices have expressed vocal support, including House Ways and Means Committee Chairman Jason Smith, Senate Finance Committee Chairman Mike Crapo, and Vice President JD Vance. From political leaders to community leaders to faith leaders to business leaders, the Child Tax Credit has a large, ideologically diverse coalition advocating for it for one simple reason: it works.
Families do not just need immediate relief—they need opportunities for long-term financial stability, and Congress should use a proven tool at its disposal—the Child Tax Credit—to give all families the opportunity to thrive.
Including an expanded Child Tax Credit in the reauthorization of the Tax Cuts and Jobs Act would not only improve families’ ability to put food on the table, but also benefit the economy and spur job growth, which is a win for every American.
Our country is strongest when all communities are strong, and as the president and CEO of United Way Worldwide, I will continue to advocate for programs and initiatives that have direct and substantial impacts on the communities and people we serve. To that end, I urge Congress to pass an expanded version of the Child Tax Credit and ensure families have the ability to thrive.
Angela F. Williams is president and CEO of United Way Worldwide.
The views expressed in this article are the writer’s own.
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