Cárdenas Highlights Impact of Child Tax Credit for Los Angeles Ahead of First Time in Six Months Families Will Not Receive Tax Cut

Statement

Today, Congressman Tony Cárdenas (CA-29) marked the first time in six months that Los Angeles families will not receive the monthly Child Tax Credit (CTC) because the Senate has yet to move on the House-passed Build Back Better Act. In 2021, approximately $1.5 billion was delivered to 645,000 hardworking families throughout the City of Los Angeles, including $208.9 million to over 72,000 families in the Northeast San Fernando Valley.

"Today is the first time in six months that Los Angeles families won't see the Child Tax Credit hit their bank accounts," said Congressman Cárdenas. "Those same families could be thrown back into financial ruin, food insecurity and poverty. We simply cannot let the progress families have made thanks to the American Rescue Plan end here."

"Growing up in Pacoima and being the youngest of 11 kids with immigrant parents from Mexico, I know that every extra dollar can make all the difference for families. That's why I joined Democrats and the Biden Administration in providing this lifeline to working families in the San Fernando Valley. As COVID-19 cases continue to climb, families need this tax cut more than ever, and they're counting on us to deliver. We must pass the Build Back Better Act in the Senate and extend the Child Tax Credit," continued Congressman Cárdenas.

The expanded CTC has helped reduce childhood poverty by over 40%, lifting more than 4 million children out of poverty. More than 80% of the poverty reduction has come from making the credit fully refundable for families with little or no income. Following the first round of CTC payments in July, there were sizable declines in financial hardship and food insufficiency. The share of households with children who reported they sometimes or often did not have enough to eat dropped 24%. This followed a steep rise in food hardship at the beginning of the pandemic. According to the latest Census Bureau data for the Household Pulse Survey conducted between September 29 and October 11, 56% of families spent their CTC payment on food, 33% spent it on internet and other utilities, 30% spent it on mortgage or rent and 30% spent it on clothing.

Research has also found that an extra $3,000 in a family's annual income when a child is younger than five leads to 19% higher future earnings, and a growing body of academic research finds that public investments in children yield significant long-term returns with economy-wide benefits, as healthier, more educated kids grow up to be more productive workers with higher earnings. This, in turn, also generates higher future revenues.

More information on how the CTC has improved the lives of families can be found here.

Source