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Did Child Poverty Really Increase Last Year?

New evidence complicates the leading narrative around short-term benefits of the expanded child tax credit.
Family That Benefits From Child Tax Credit
Mali Gank, left, holds her son Jeremiah as she talks to stepdaughter Makayla Gank, right, at the Gank home in Terra Alta, West Virginia, on October 21, 2021. (Photo by Duncan Slade/Washington Post/Getty Images)

In 2021, Democrats succeeded in temporarily expanding the child tax credit (CTC) as part of President Biden’s American Rescue Plan. Previously, the maximum CTC of $2,000 per child was available only to workers with income tax liability and who exceeded an earnings threshold. The expansion gave every family $3,000 per child—$3,600 for younger children—regardless of whether it had any earnings.

Scott Winship is a senior fellow and the director of the Center on Opportunity and Social Mobility at the American Enterprise Institute.

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