Researchers: Biden’s financial aid plan may lower baby poverty in half

They add that the additional measures included in Biden’s proposal—”an increased minimum wage, child care assistance, rental assistance, and more”—would also reduce poverty for families with children, but only had information available to evaluate the emergency assistance measures above. The tax credit expansion is big for young families, up from $2,000 per child under age 17 currently. Biden wants to make that tax credit fully refundable.

“In the world of people who care about low-income children, this is really big news,” Elaine Maag, principal research associate at the Urban-Brookings Tax Policy Center, told CNBC after the Biden team released his plan Thursday. The National Association of Counties is extremely enthusiastic. “County governments play a critical role in combatting child poverty, partnering with state and federal governments to administer social safety net services and using local dollars to support innovative programs that help children thrive and promote intergenerational economic mobility,” they write. They’ve called on the federal government to cut child poverty in half in 10 years, so the accelerated timeline of Biden’s plan—if elements could be made permanent post-pandemic—would be huge.

Related Articles