Reducing Poverty and Building Capacity—Perceived Child and Family Impacts of the Child Tax Credit Expansion

Abstract

AbstractThis study aims to evaluate the perceived impact of the Child Tax Credit expansion on families’ physical, mental, and financial well-being utilizing rigorous qualitative methodology. Parents (n = 40, ages: 20–49 years, median income: $36,000–48,000/year) in the southeastern USA completed interviews in October–November of 2020 after they received 3–4 monthly Child Tax Credit payments. Parents were classified into two groups (e.g., household income above [n = 21] vs. below [n = 19] 200% of the federal poverty line) for qualitative inductive analysis. Pre-ECTC themes were mapped onto the Hidden Dimensions of Poverty Framework. Across income groups, the expansion positively impacted family relationships, reduced stress, and facilitated meeting routine needs (e.g., food, housing costs). Parents with low-income were empowered to purchase greater volumes of food and invest in quality-of-life improvements (e.g., child extracurricular programming, family outings) for their children. Parents expressed disappointment around the expansion’s termination in December of 2021. The expanded Child Tax Credit empowered families to improve their well-being and reduced financial and emotional burdens. Personal anecdotes of public experiences with policy change can have a significant impact on federal policy decision-making. Parents perceived the ECTC improved their family well-being and desired its maintenance. This unconditional income assistance may be a viable strategy to significantly improve quality of life, if sustained long term. The health impacts and the cost benefit of this policy change should be evaluated.