Cash provides predictability, empowering families not just to make ends meet, but to make choices that aren’t constrained by financial insecurity.

Case in point: the Child Tax Credit. The monthly payments provided in the last half of 2021 took the edge off of everyday worries, like buying groceries and paying the gas bill, while also providing a powerful lever for families to transform their lives. The payments were incredibly effective, resulting in a steep drop in food insecurity among Black and Latinx families in particular. 

These credits clearly work, and are popular on both sides of the aisle. Economic Security Project is fighting to expand and modernize cash tax credits, so that they work more powerfully for more people. We aim to make the expanded monthly Child Tax Credit permanent, and to update the Earned Income Tax Credit (EITC). An improved EITC would arrive, like the Child Tax Credit, without the recipient even having to file for it, as an automatic monthly payment, rather than a lump sum at tax time. These monthly cash payments would help smooth income volatility, affording people baseline stability so they can meet their regular expenses and make plans with confidence. 

We are also working to ensure these popular credits are easy to receive, and widely and equitably available, regardless of a person’s immigration status or income level. The credits should include low-income students, and those whose work has been overlooked in the past – such as parents or other caregivers caring for young children and those who take care of sick, disabled, or elderly family members. 

These goals are ambitious but achievable. Cash tax credits are proven tools that are already at hand. By updating them so they are more effective and accessible to more people, we can build a world where basic financial stability and the freedom it brings are attainable for all.