The Child Tax Credit (CTC) and Earned Income Tax Credit (EITC) have proven effective at reducing poverty and narrowing racial and gender disparities, especially for women of color and children in low-income households. However, in 2025, H.R. 1 expanded benefits for higher-income families while restricting access and reducing benefits for many low-income and immigrant families. As a result, millions of children—particularly children of color, children in large families, and children living in rural areas—were excluded from receiving the full CTC, despite evidence that the credits support family well-being and alleviate poverty.
Co-authored by the National Women’s Law Center and the Georgetown Center on Poverty & Inequality, this brief makes the case for expanding the Child Tax Credit and reversing the restrictive provisions of H.R. 1 to build on the success of the 2021 American Rescue Plan Act, which temporarily made the credit fully refundable and widely accessible, resulting in historic reductions in child poverty. It highlights research showing that expanding the CTC provides not only immediate relief for families but also long-term societal benefits, including improved health, higher earnings, and reduced crime. Recommendations include:
-
- Expanding the Child Tax Credit to reach up to 19 million more families.
- Strengthening the IRS’s capacity to deliver these credits equitably.
- Restoring funding for vital programs like Medicaid and SNAP through increased and equitable tax revenue.