Rising Child Poverty Rates: A Setback for Anti-Poverty Efforts

The child poverty rate in the U.S. has more than doubled in the year since pandemic benefits ended, according to Census Bureau data. The child poverty rate, which hit a historic low of 5.2% just a year ago, now stands at 12.4%, the same as the overall poverty rate. Experts attribute this rise to the end of the expanded child tax credit, which was a key factor in reducing poverty initially. The credit disproportionately benefits higher-income families, while low-income families lost out on this support when pandemic relief ended. The impact of the child tax credit on child poverty has sparked debate over reviving and expanding it, with Democrats pushing for its inclusion in tax negotiations. Several states have taken action to implement their own child tax credits to support low-income parents. Median household income also fell by 2.3% last year, while inflation outpaced wage gains, leading to economic insecurity for many Americans.