The Child Tax Credit (CTC) has been one of the most effective tools in reducing child poverty and supporting working families. The cash it provides to families improves economic stability and well-being for millions of children, helping ensure they have enough food, clothing, school supplies, and stable housing. This fact sheet highlights the critical role of the CTC in reducing poverty and outlines the five components of an effective CTC. By strengthening the CTC, we can build a future where every child has the resources they need to thrive.