Child tax credit expansion would help an entire generation of children, CHOP CEO says
Every day we see patients whose health conditions are exacerbated by poverty, even in families in which both parents are employed. This shouldn't happen in the world's wealthiest nation.
Lawmakers in Washington have a chance to improve the health and well-being of an entire generation of children.
Recently, as part of a broader tax policy initiative, a bipartisan coalition in Congress announced a deal to expand the child tax credit to benefit an estimated 16 million low-income kids, including nearly three million children under age 3. The Center on Budget and Policy Priorities estimates that, in the first year alone, it would lift a staggering 400,000 kids out of poverty and improve conditions for an additional three million. (A separate bill, introduced by Sen. Bob Casey (D., Pa.), would enable parents to recover up to half of what they spend on childcare, including day care, summer camps, and nannies.)
But the deadline is tight for Congress to approve and implement the child tax credit, and the business-oriented tax provisions, before the beginning of the 2023 tax filing season.
While some observers have focused primarily on the business tax provisions in this new bipartisan tax bill, the public health benefits would be enormous.
The public health benefits would be enormous.
At Children’s Hospital of Philadelphia, every day we see patients whose health conditions are exacerbated by poverty, even in families in which both parents are employed. Hungry kids don’t perform as well in school. Children born into poverty also tend to have lower birth weights, behavioral issues, increased risk of chronic illnesses, and higher rates of infant mortality.
These are conditions we shouldn’t be facing in the wealthiest nation in the world.
These are also conditions that are eminently solvable.
Two years ago, a mother of two daughters who came to CHOP told our providers she had recently received a substantial child tax credit. The money came at a critical time for her to pay off debt. She was then able to spend more money on food and other needs for her kids, and even start saving some for them.
The data support her experience, showing that families who received the expanded child tax credit spent it on items children need, such as housing, utilities, clothing, and education costs. This money is not wasted and directly benefits children.
In 2021, when the American Rescue Plan gave families up to $300 per month per child for six months, it resulted in the largest one-year drop in child poverty ever — from 9.7% to 5.2%. The program was hailed as a universal success.
But less than a year later, Congress couldn’t agree on if or how to extend the tax credit, and families bore the brunt. A study by CHOP and Penn Medicine researchers found that, when those temporary payments ended, families with children making less than $25,000 a year — and there are 3.3 million of those families nationwide — saw a more than 6% increase in food insufficiency (not having enough to eat). In 2022, child poverty jumped back up to 12.4% — higher than before the pandemic.
Financial health and physical health are inextricably linked. If you don’t have enough money for healthy food, you become malnourished, which leads to a host of negative health outcomes. Stress is a major health factor, as well: People under stress, financial or otherwise, may be quicker to anger or to shut down a conversation, which leads to more stressful parenting. All of this affects kids the most.
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As a part of caring for families with children, CHOP offers financial counseling and help navigating public benefits, and we’ve seen that direct payments have the biggest impact on health — which is why there’s so much riding on this measure that Congress is considering.
Elected officials might prioritize the business elements of the bipartisan tax deal when discussing it, but to us, considerable attention should be paid to the health benefits. And it’s about children. Will they be able to eat enough? Will their parents be able to start saving for whatever their child’s future holds, or even their own retirement? Will infant mortality rates decrease?
We’ll find out as Congress continues to deliberate this life-changing legislation. We call on members of Congress to embrace the opportunity to improve the health of millions of children and to act promptly so the benefits will start to take hold.
Madeline Bell is president and CEO of Children’s Hospital of Philadelphia.