BY SUSAN TEBBEN
An analysis by an Ohio-based think tank says the expanded child tax credit has given life to families who were already struggling before the pandemic began, but sank further amid job losses and increased child care needs.
The child tax credit was expanded temporarily in March as part of the federal American Rescue Plan, raising the per-child credit from $2,000 per child in 2020 to $3,600 for each child younger than six, and from $2,000 to $3,000 per child for children age six to 16.
There is also a $3,000 credit for households with 17-year-old children.
Monthly payments started going out in July, but the credit is only effective for 2021, with a deadline of Nov. 15 for families to sign up for the tax credit.
So far, $1.6 billion has been given to more than 2.1 million Ohio children since July 15, federal data from the U.S. Department of the Treasury shows, averaging $437 per month per family.
The think tank said this expansion brought minority communities and children in rural communities funding they needed and didn’t have even before the pandemic.
“Years of policy choices have held down wages and limited opportunities for many Black and brown and rural families, draining resources from their communities,” the Policy Matters analysis stated.
As the pandemic continued, the analysis estimated 1.15 million adults with children reported struggling to pay for basic household expenses before the child tax credit, and after the tax credit, that number decreased by 26%.
Citing data from the Center on Budget and Policy Priorities, Policy Matters said an estimated 84% of households who make less than $35,000 per year used the refundable child tax credit to pay for “basic needs, including food, clothing, rent, mortgage, phone and internet, to support their family.”
The CBPP said 60% of those making more than $35,000 per year would also be using the credit for the same basic needs.
Financial recovery from the pandemic is still going on, as is the COVID-19 pandemic, so having the temporary boost has allowed more financial security and stability.
A report on child poverty by the National Academies of Sciences, Engineering and Medicine said child poverty costs America an estimated $800 billion and $1.1 trillion in “lost adult productivity, the increased costs of crime and increased health expenditures.”
Because of the increased financial stability and food security with the expanded child tax credit, among other reasons, Policy Matters recommended that Congress make the expansion permanent.
“When we as a society prioritize the health and well-being of kids and families, we all benefit,” the thinktank stated.
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Also from Ohio Capital Journal:
COVID-19 surge begins to ease in Ohio
A two-month surge in COVID-19 infections in Ohio appears to be easing, state data shows.
On Oct. 1, the average rate of new infections by day fell to about 5,000, down from a recent high of about 7,400 per day in mid-September.
While less pronounced, the number of patients in the hospital on a given day with COVID-19 has declined as well. Fewer than 3,400 Ohioans are hospitalized with the disease as of Thursday, compared to about 3,700 in late September. READ MORE
Medicaid department: No emails between DeWine-connected lobbyist and staff
There were no emails between an old friend of Gov. Mike DeWine and Medicaid staff after a major Medicaid contractor hired the friend to lobby on its behalf at the beginning of the year, a Medicaid lawyer said Tuesday.
Any such communications would be of interest because the company, Centene, hired Michael Kiggin just two months before Attorney General Dave Yost accused it of defrauding taxpayers of tens of millions of dollars. Despite the accusations — and despite the fact that Centene is paying $88 million to settle them — the Medicaid department in August announced that it would restart its huge contract with Centene subsidiary Buckeye Health Plan.
The relationship between DeWine and Kiggin goes back to their law school days. Once he became governor, DeWine appointed Kiggin to the Ohio State University Board of Trustees, which is regarded as one of the most prestigious posts the governor can grant.
Kiggin hasn’t answered questions about what he did for Centene. But in his Jan. 1 registration document, he said he was going to lobby DeWine, the Medicaid department, Yost and Lt. Gov. Jon Husted on “decisions regarding Medicaid managed care” — the service provided by Centene’s Buckeye. READ MORE
