Impact of Pandemic Child Tax Credit Expansion on Families and Immigrant Children

In 2021, the U.S. Congress temporarily increased the Child Tax Credit (CTC), making it more generous and accessible to families with little or no income for the first time. This policy significantly reduced child poverty, nearly halving it during that period. However, the expiration of these expanded benefits led to a rollback of these gains, causing many families to fall back into poverty and reversing the progress made.

A recent comprehensive study conducted by Boston University School of Public Health (BUSPH) and Drexel University Dornsife School of Public Health examines the health and economic outcomes of the expanded CTC. Published in JAMA Network Open, the research highlights that families who received the CTC experienced lower levels of anxiety, food insecurity, and housing instability. For instance, families behind on rent were better able to catch up on payments, illustrating the direct economic benefits of the program.

The study tracked over 5,800 parent-child dyads, mainly children under two years old, through a longitudinal approach before and during the COVID-19 pandemic. It revealed that recipients of the CTC were more likely to have a bank account, file taxes regularly, and possess private health insurance, all of which contributed to improved stability.

Dr. Stephanie Ettinger de Cuba, the study's lead, emphasized that access to food security, stable housing, and caregiver mental health directly affects children's health and development. She noted that easier access to the CTC was linked to positive mental health and economic outcomes. Nevertheless, a significant concern remains as proposed legislative changes could eliminate eligibility for millions of children in mixed-immigration families, particularly those who are undocumented or undocumented parents, further disadvantaging vulnerable groups.

The research underscores that to achieve equitable health and economic stability, policies must remove barriers like income and tax filing requirements. Many eligible families face logistical challenges or distrust government agencies, which prevent them from accessing benefits. Effective outreach and culturally sensitive communication are crucial to improving participation.

The study's findings come amidst debates over the new tax and spending bill, which proposes to increase the maximum CTC but limits eligibility and benefits for the lowest-income families. Critics warn that these changes could deepen inequalities, especially affecting immigrant children who are already disproportionately affected during the pandemic.

Ultimately, the evidence suggests that maintaining and expanding the Child Tax Credit — with policies that remove eligibility barriers and foster trust — is vital for supporting children's health, reducing poverty, and strengthening families across the nation.