WASHINGTON, D.C. — Today, Humanity Forward is renewing a call to policymakers for compromise on extending the monthly Child Tax Credit. Lawmakers have already permitted a second month of missed payments for parents this time next week, causing a disruption for parents who used the payments to budget for food, child care, and clothing.
“What we’ve seen in the data and what we’re being told by parents is that receiving the Child Tax Credit in monthly installments each month helped them reliably navigate rising costs,” said Humanity Forward spokesperson Greg Nasif.
Analysis of the Census Pulse Survey conducted by Washington University in St. Louis’ Social Policy Institute found that some 300,000 low-income parents started small businesses in the months they were receiving CTC payments, growth of over 20%. It also found no significant differences in employment for parents, suggesting the support from the monthly payments enabled more parents to pay for child care and continue working to support their families.
“Without that monthly support, many are making the tragic, necessary choice to draw back the risk of starting new businesses, play it safe, close up shop, and make sure their kids are fed and housed.,” said Nasif. “It’s up to lawmakers to renew the monthly Child Tax Credit, and make sure parents have the resources and flexibility to fight rising costs and continue contributing to our economy.”