Child tax credit payments have only landed in bank accounts and mailboxes for two months, but so far it looks like the extra $ 250 to $ 300 per eligible child is making a big difference. in many households across the country. Earlier this month, a study showed that the July child tax credit checks that were issued to eligible households helped make a significant difference in rates of food insecurity, financial instability and financial anxiety for many families.
And, as the money continues to be issued to eligible households, it is likely to continue to help low to moderate income households make ends meet over the coming months. Families who qualify for the withholding tax credit can count on these monthly payments until December 2021 and will receive the other half of the child tax credit when they file their 2021 taxes early next year.
While the child tax credit money is undoubtedly making a difference in millions of households across the country by helping parents stock pantries, pay bills and cover other expenses, a new Census Bureau study shows that the first and second rounds of child tax credit money has made a big difference to minority households in particular. Here’s what the census data shows.
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How minority households benefit from child tax credit money
New data from the Census Bureau’s Household Pulse Survey was released earlier this week, and what it showed is that child tax credit money continues to make a difference for families across the country – and this has had a notable impact on minority families in particular.
According to the report, the child tax credit led to:
A decrease in food shortage
According to the report, the two rounds of the child tax credit have had a significant impact on hunger rates in households across the United States.
Census data shows reports of food shortages among all families with children dropped from 11% in the weeks before the first child tax credit payment to 8.4% after the first payment. After the second check, the food shortage rate for all families fell further to 7.7% overall.
And, although this is a significant drop in hunger, the report shows that the impact on food scarcity among Latin American families was even greater. After the issuance of the first round of checks, food insecurity in Latino households fell from 15.7% to 10.1%.
That’s a drop in food insecurity of about 5.6% for Latino households – all thanks to the money from the child tax credit.
Equally significant was the impact of the second child tax credit audit on hunger rates in black households. After the first check was issued, the food shortage in black households was around 17%. After the second payment, the rate fell to just 11.8%, a drop of over 5%.
Increased housing security
The first child tax credit payment also helped all families – and households of color in particular – stay in their homes.
After the first check was issued, the percentage of all respondents who had little or no confidence in their ability to pay the next month’s rent declined slightly from 25.7% to 25.6%. That’s a difference of about 0.1%.
But, the impact of the July checks on black and Latino families struggling to pay their rent was even more noticeable.
Before receiving the first child tax credit check, about 36.7% of black households surveyed had little or no confidence in their ability to pay next month’s rent. After the July checks were issued, the number of black households who had little or no confidence in paying next month’s rent fell to 35.8%, a slight, but noticeable, decrease.
And, before the July check was issued, about 37.3% of Latin American families said they had little or no confidence in paying next month’s rent. After the July checks were issued, around 36.7% of Latino households said they had little or no confidence in paying next month’s rent. This is again a slight, but noticeable, decrease.
An increase in the satisfaction of basic needs
The August Child Tax Credit payment also had a significant impact in helping minority families with children meet household expenses. According to the data, the Child Tax Credit has helped 20% of Latin American families and 18% of black families become newly able to meet their basic needs.
These data help demonstrate the immediate and direct effects of the child tax credit on minority households, which are statistically more likely to suffer from the effects of an economic downturn. Whether or not these trends will continue remains to be seen.
What is clear, however, is that the child tax credit money is having a big impact on households now, and will be for the next few months, if not longer. In some cases, households see their income increase by around 38% thanks to credit.
And, there is currently a push to make the expanded tax credit permanent. If that happened, it could help lift millions of low-income families out of poverty and would likely continue to make life a little easier for households with children in the long run.