Child Tax Credit Expansions Rise Amid Mixed State-Level Progress

The Child Tax Credit, expanded significantly under the 2021 American Rescue Plan Act, temporarily reduced child poverty to its lowest recorded rate, demonstrating the impact of direct financial support to families. However, after Congress allowed this expansion to expire, child poverty rates surged, with nearly six million more children falling below the poverty line by 2024. While traditionally supported by liberals, some conservative states have begun exploring local child tax credits, though most proposals, especially refundable ones that aid the lowest-income families, have faced legislative hurdles. Georgia and Utah made modest moves by approving or expanding nonrefundable credits that do not benefit the poorest families, highlighting ongoing political challenges. The reversal of progress sparked calls from Democratic leaders to prioritize reinstating and expanding the Child Tax Credit to better support children and families nationwide. This situation reflects the fragility of child welfare improvements when policy support wanes and underscores the continued debate over how best to address child poverty in America.