A taxing situation: US Congress urged to expand Child Tax Credit amid food insufficiency revelations

26 Oct 2022 --- A recently published study reveals that the failure of the US Congress to renew the Child Tax Credit (CTC) at the end of 2021 increased food insufficiency for families with children by an estimated 25%. Experts are urging lawmakers to pass a “fully refundable and inclusive advance CTC” as part of Congress’ year-end tax relief package negotiations.

The findings all but obliterate the estimated 26% decrease in food insufficiency President Biden touted at the recent White House Conference on Hunger, Nutrition and Health. However, the idea is not without its retractors, even within the Democratic Party.

The Boston University School of Public Health (BUSPH) Boston Medical Center (BMC) researchers found that within the months following the CTC’s cash payment discontinuation in December 2021, latino, indigenous, black, immigrant and low-income families were disproportionately impacted and suffered increased food insecurity and insufficiency.

“The six short months of these Child Tax Credit advance payments clearly made a big difference for American families and a permanent expansion would be a game-changer for reducing child poverty for good,” says Dr. Paul Shafer, senior author of the study and assistant professor of health law, policy and management at BUSPH. 

“There is more to do to make sure that very low-income families actually get the monthly payments, prompting efforts like GetCTC, but a permanent expansion allows resources and awareness to build around the policy in a way that short-term fixes don’t.”

What is the Child Tax Credit?
The expanded CTC was part of the American Rescue Plan Act (ARPA), which passed in March 2021. It gave monthly cash payments to an estimated 92% of US families with children. The payments equaled US$250 to US$300 per month, per child, based on the child’s age. The CTC was intended to offset costs associated with COVID-19 lockdowns, job losses and the closing of schools.

The US Congress and Senate may have a hard time coming to bipartisan consensus.Before the CTC was terminated in 2021, public health experts warned that the loss of payments could push millions of US families into hunger. A separate study published by Columbia University found that the CTC’s expiration did drive 3.7 million children into poverty. The BUSPH study, published in the JAMA Network Open, reveals a rise in the number of families who were unable to afford a sufficient amount of food during the week.

The study reports that these findings are of paramount significance, especially for families with children as the effects of poor nutrition on developing and growing children can be detrimental, long-lasting and even permanent.

“This significant increase in food insufficiency among families with children is particularly concerning for child health equity, as child health, development and educational outcomes are strongly linked to their family’s ability to afford enough food,” says Allison Bovell-Ammon, study lead, corresponding author and the director of policy and communications at Children’s HealthWatch at the BMC. 

“Even brief periods of deprivation during childhood can have lasting impacts on a child,” she explains.

Who is most affected?
The main finding of the study is that the CTC significantly reduced racial and income inequalities in food security in 2021. The ARPA’s expansion of the CTC allowed low- and no-income families to receive payments and ensured access to latino, indigenous, black and immigrant children that were excluded from the CTC until the ARPA’s passing. 

Conversely, it also found that the expiration of the CTC severely exacerbated those same inequalities, with those with the lowest incomes experiencing the highest rates of food insufficiency and food insecurity. 

“Black, latino, indigenous and immigrant families in the US consistently experience food insecurity – a broader measure that assesses quantity, quality, and variety of food – at higher rates than White families as a result of current and historical marginalization and systemic racism,” Bovell-Ammon underscores. 

The study, which included 592,044 families with children and focused on their nutrition statuses from July 2021 to July 2022, found that the greatest period of food insufficiency occurred in the spring of 2022, almost immediately following the CTC’s expiration.Minority, immigrant and low- to no-income families were reportedly hardest hit by the termination of the expanded CTC.

“Following the expiration of the payments at the end of 2021, the gains in racial equity were eroded, potentially further exacerbating racial and health inequities and increasing distrust,” says Stephanie Ettinger de Cuba, research associate professor of health law, policy and management at BUSPH and the executive director of Children’s HealthWatch.

Could the legislation pass?
Since the expanded CTC’s inception, a few Democrats have opposed its terms. West Virginia Senator, Joe Manchin, demanded a work requirement before the CTC’s failed to renew. Furthermore, Axios reported that Democratic Senator Michael Bennet of Colorado was willing to concede to some of Manchin’s demands in February 2022.

Moreover, other key democrats have proclaimed their willingness to change and limit the allowances afforded by the original CTC expansion. In April, Oregon Senator Ron Wyden told Vox that he would be willing to make changes in order to get a consensus in the Senate. 

Senator Sherrod Brown of Ohio further told vox that he will continue to work with his colleagues until “the expanded CTC is signed into law.”

However, with a work requirement being a main condition for the Republican Party and its absence a main condition for many members of the Democratic Party, lawmakers may be hard-pressed to permanently expand the CTC in its original, robust form.

By William Bradford Nichols