PENNSYLVANIA — As the third round of Child Tax Credit payments hit bank accounts across the commonwealth tomorrow, a detailed report shows the number of American families who report not having enough to eat fell dramatically after the first child tax credit payments were distributed. Recent data shows that the monthly payments are having a major and immediate impact on families in PA and across the country — and with the third round of payments hitting bank accounts, even more families are set to benefit from President Biden’s investments in America’s future.
Politico: Round one of child tax credit payments slashed hunger rates, U.S. data shows
“It is great news that the estimated rate of hunger among those with children is at a pandemic low,” said Diane Whitmore Schanzenbach, director of the Institute for Policy Research at Northwestern University, who has been closely tracking food hardship rates throughout the pandemic.
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The monthly payments of up to $300 for each kid under five and up to $250 for each kid under 18 are the result of one of the most sweeping provisions in the American Rescue Plan, though the policy did not garner much media attention at the time. The payments are set to continue each month through December.
Before the first tranche of tax credit payments hit bank accounts in mid-July, about 11 percent of households with children reported that they sometimes or often did not have enough to eat in the past week. After the money went out, the rate dropped to just over 8 percent — a decrease of nearly 24 percent — and the lowest rate recorded since the beginning of the pandemic.
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The monthly payments of up to $300 for each kid under five and up to $250 for each kid under 18 are the result of one of the most sweeping provisions in the American Rescue Plan, though the policy did not garner much media attention at the time. The payments are set to continue each month through December.
Before the first tranche of tax credit payments hit bank accounts in mid-July, about 11 percent of households with children reported that they sometimes or often did not have enough to eat in the past week. After the money went out, the rate dropped to just over 8 percent — a decrease of nearly 24 percent — and the lowest rate recorded since the beginning of the pandemic.
Researchers say it is too early to fully understand the latest drop in hunger rates, but it appears to be closely tied to the child tax credit payments. Households with children saw a major decline, while adults in households with no children saw virtually no change over the same period, with about 6 percent reporting a lack of food sometimes or often.
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The U.S. Census Bureau survey has also routinely shown that households in need will often spend direct cash assistance on necessities like food and utilities.
The most recent survey data shows that nearly half — 47 percent — of households reported spending their tax credit payment on food. About 17 percent of households with one kid under five reported spending the money on childcare.
The survey found the child tax credit payments appeared to make it easier for households to cover all of their expenses. There was a decline in the share of adults in households with kids reporting that it was somewhat difficult or extremely difficult to cover their expenses, from 32 percent to 29 percent, a nearly 8 percent decrease. By comparison, the share of adults in households without kids reporting difficulty went up slightly over the same period.
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