WASHINGTON, April 14, 2022 /PRNewswire/ — New research Notes that the monthly child tax credit has greatly improved the financial security of eligible families in the face of rising costs, even leading to a sharp decline in households seeking expensive financial services such as predatory payday loans and blood plasma sales.
In the study, released with the Brookings Institution’s Global Economy and Development program, researchers at the Social Policy Institute at Washington University in st louis and Appalachian State University surveyed over 1200 households eligible for credit and covered a wide range of topics relating to family finances, work and health.
“While the child tax credit still exists, this study shows that monthly payments were far more beneficial to working families than lump-sum payments,” he said Paolo Mastrangelo, Head of Policy and Government Affairs for Humanity Forward. “As more and more Americans resort to desperate measures to make ends meet, we at Humanity Forward are turning to Congress to find an immediate compromise and bipartisan way to end this disruption to monthly support for American families.”
70 percent of parents who received the monthly loan and were negatively affected by inflation said the monthly payments helped them better cope with higher prices. In addition to a sharp decrease in reliance on alternative sources of income such as payday loans, CTC-eligible households reported a reduction in credit card debt, improved emergency spending management, and a significant decrease in evictions.
The report also found significant data related to work and career development and concluded that there were no statistically significant changes in employment between households that received and did not receive the loan during monthly payments and that CTC-eligible households more likely to start learning new skills than ineligible households.
Households that received the loan were able to afford more balanced meals with better fruit and protein consumption. This is consistent with the previous one US Census Bureau datawhich reported that hunger in CTC-eligible households fell by 24% after the first monthly loan payment July 2021.
Unfortunately, without a monthly child tax credit, many of those gains are lost. A report from Those of Columbia University Center for Poverty and Social Policy found that child poverty, which had been reduced by 3.7 million thanks to the Child Tax Credit, increased by 41% after monthly payments expired.
“The decision not to extend this [monthly] Payments beyond 2021,” the report concluded, “endanger all of these short-term gains while preventing families from experiencing the long-term benefits of increased economic security.”
About Humanity Forward
Humanity Forward is a 501(c)(4) not-for-profit organization dedicated to finding bipartisan solutions to advance the economic interests of the American people through federal policy. Positioned as one of America’s fastest-growing, altruistic advocacy organizations, our mission is to advance evidence-based policies aimed at strengthening families, generating economic growth, and ending poverty.
SOURCE Humanity Forward