Continuing the expanded credit beyond 2021 would slash child poverty even further, reducing it to about 8.4% from 14.2%, a fall of roughly 40%, according to a recent study by Gregory Acs, vice president for income and benefits policy at the Urban Institute, and Kevin Werner, a research analyst in the income and benefits policy center at the Washington, D.C., think tank.
In 2021, a family of four making $26,500 or less is considered to live in poverty, according to guidelines from the U.S. Department of Health and Human Services. The median national household income was $68,703 in 2019, according to the most recent data from the Census Bureau.
"Even after the pandemic ends, we will still have a child poverty rate that's typically a little bit over 14%," said Elaine Maag, a principal research associate at the Urban-Brookings Tax Policy Center. "But if we were to keep this child tax credit, we could drop that down closer to 8%."