Comments from child tax credit recipients show it’s still necessary, USC professor finds

In July, the historic Child Tax Credit expansion took effect.

Qualifying families received unconditional cash payments up to $250 to $300 per child, each month. In South Carolina, almost one million children qualified, and 580,000 households received these payments, averaging $433 per month for each family.

As Congress debates extending this benefit into 2022 through the Build Back Better Act, we need to consider the voices of those most affected.

Since these payments began, parents reported using the money on childcare, school expenses, saving for emergencies, and basic needs. After one month of Child Tax Credit payments, poverty rates fell from 15.8% to 11.9%, lifting ~3 million children out of poverty.

Families’ ability to pay for expenses improved, and fewer families reported lacking enough food to eat.

Data from our team showed very low food security dropped substantially after just three months of Child Tax Credit payments.

Pending decisions on extending this expansion include debates on its long-term cost-benefit.

Findings from the Becker Friedman Institute estimate that employment would decline, and child poverty would be reduced at a rate that does not support cost efficiency. Contrary findings from the Center on Poverty & Social Policy indicate the long-term benefits far outweigh the initial high price tag, with a significant return on investment via benefits to society.

These and other reports highlight economic and social implications of this policy change.

But let’s put numbers aside and listen to the Americans who were struggling, yet resilient; whose lives have been changed over the past five months by receiving these payments.

Recently, our team interviewed lower income families impacted by the Child Tax Credit expansion.

During these interviews, families conveyed a sense of struggle prior to the Child Tax Credit expansion:

“I never wanted to be in a position where I have to beg for help from other people or have my kids go without. Or for us to sit in here with no lights on.”

Yet, families were resilient in finding ways to make it work, such as additional work, using community resources, or limiting their utility use:

“We took advantage of pretty much any resource that was available to us under COVID. Like including rent and mortgage moratorium and things like that. We were able to make it work and just kind of get creative each month.”

After receiving a few months of Child Tax Credit payments, families conveyed a sense of relief:

“It made things a lot easier. I’m paying a lot more bills on time. I mean it’s just a whole sense of security because it helps pay these bills that were harder before.”

Parents lit up when sharing how the Child Tax Credit provided new opportunities for their children:

“Our daughter is now able to do some afterschool programs. I think for us, as parents, it lowered our stress, because she was able to do this program. It really helped her to have a purpose. She was able to find a stress relief and get the frustrations out and a healthier way.”

And the child tax credit provided families more opportunities to do activities together and grow closer:

“We’ve had a few more opportunities to do stuff as a family. We’ve had more interactions together because of those opportunities.”

Lastly, families conveyed a sense of sadness with the payments expected to end in December:

“It’s like I’m going back to the struggling all over again, but I’m kind of planning for it and making the adjustments necessary for when those payments are gone.”

As discussions progress around extending the Child Tax Credit monthly payments, let these voices be heard.

Elizabeth Adams, Ph.D., is an Assistant Professor in the Arnold School of Public Health at the University of South Carolina.