LDF, Community Change Action, The Leadership Conference on Civil and Human Rights, the NAACP, the National Urban League, and UnidosUS sent a letter urging members of Congress to pass the expanded Child Tax Credit (CTC) focused on helping children in low-income families as soon as possible, and to refrain from passing any extension or expansion of corporate tax breaks without also including an expanded monthly refundable Child Tax Credit.

Expanding the Child Tax Credit is a proven method to reduce child poverty and improve economic mobility, particularly for families of color, without reducing workforce participation. Black and Latino children experienced the greatest benefits.7 In 2021, the poverty rate fell to 8.3 percent for Black children and to 8.4 percent for Latino children.8 Most low-income families spent the expanded CTC on basic necessities like food, utilities, and rent or mortgage payments, as well as education. Unfortunately, these gains evaporated as soon as the monthly CTC payments ended. At the same time that families lost access to the expanded CTC, they also faced rising costs due to inflation. Investing in families by expanding the CTC is one of the best ways to combat the effects of inflation.