Spotlight on: The Child Tax Credit

Poverty Tracker data finds that parents, long versed in stretching thin budgets to cover the costs of raising children, viewed the Child Tax Credit (expanded by the Biden administration in 2021) as an opportunity to enhance their children’s lives, ward off hardship, stabilize their budgets, and save for the future. With more money to spend, parents also honed their financial management skills as they decided how to spend it. Its form — direct cash benefits — allowed families to adapt it to their individual budgeting strategies and shifting needs.