## As Election Day Approaches: The Child Tax Credit in the Spotlight
In anticipation of the upcoming Election Day, presidential candidates have set their sights on the future of the child tax credit, a critical support for American families. This noteworthy policy is scheduled for reconsideration next year, thus urging Congress to make decisive choices come 2025. They must choose whether to let it expire, keep it as it is, or perhaps expand it further. Despite ambitious proposals on the campaign trail, a major expansion is unlikely. To explore more about its popularity, visit [most popular policies](https://19thnews.org/2021/07/child-tax-credit-payments-moms-road-out-of-poverty/).
### Historical Perspectives on the Child Tax Credit
The child tax credit has undergone several transformations since its inception in 1997. Notably, Trump’s 2017 Tax Cuts and Jobs Act increased the credit to $2,000 and broadened eligibility to families with incomes up to $400,000. However, the policy still left many of the poorest children out due to low parental incomes. A one-time expansion in 2021 offered a glimpse of its potential: families received $3,000 to $3,600 per child depending on their age, delivered in monthly payments. These changes temporarily halved child poverty. Although its expiration in 2022 resulted in a rise of the poverty rate to [13.7 percent](https://www.census.gov/library/publications/2024/demo/p60-283.html).
### Current Political Landscape and Expectations
As the Republicans take the helm, they hold sway over the White House, House of Representatives, and Senate, which gives them an expedited path for legislation. The proposed 2017 expansion was aimed to be made [permanent](https://rncplatform.donaldjtrump.com/?_gl=1*c31tkc*_gcl_au*MTY2NTIyOTMzNi4xNzI1NTY5OTU3&_ga=2.231316378.463529750.1725569958-892311004.1725569958&utm_source=substack&utm_medium=email). Nonetheless, inflation-indexing might be on the agenda, raising it to roughly $2,500. This figure may still exclude about 18 million children. In the words of Meredith Dodson, senior director of public policy for the Coalition on Human Needs, initial talks among congress members are already on the way.
### Competing Proposals and Economic Considerations
Various proposals and ideas are on the table regarding how the child tax credit may evolve. Republicans raise concerns over work disincentives if credit increases significantly. For instance, they argue that allowing caregivers to use their previous year’s income could reduce work hours. Conversely, many families [benefited](https://19thnews.org/2021/07/child-tax-credit-payments-moms-road-out-of-poverty/) from these credits to meet essential needs.
There are propositions for broader expansions, such as introducing a “baby bonus” of $6,000 for a child’s first year, a concept supported by Vice President Kamala Harris in her campaign. Financial implications are substantial, with discussions about potential cuts in Medicaid and food stamps to fund extensions of the credit. Michelle Dallafior from the First Focus Campaign for Children warns of alienating moderate Republicans if these cuts affect low-income families.
### The Advocacy for a Universal Child Tax Credit
Parents, like Tia Simmons, play essential roles in advocating for a universal child tax credit. The initiative aims to be accessible to all children irrespective of parental income. It proposes a yearly amount of at least $6,000. Simmons, grappling with financial challenges, expresses the impactful absence of this credit on everyday life costs. This advocacy is vital, as the decisions Congress makes could have significant ramifications on people struggling like Simmons.
Thus, this conversation transcends politics, delving into real societal impacts. An understanding and acknowledgment of these complex financial landscapes are imperative.
### Moving Forward: What Lies Ahead
The optimal path for the child tax credit remains a matter of considerable debate. With Vice President-elect JD Vance advocating for a potentially universal credit, whether the final outcome will align with these visions is uncertain. Meanwhile, President-elect Trump has hinted at several [variations](https://www.youtube.com/watch?v=ZodAvZr5Cog&t=1) of the credit being on the table for consideration.
Ultimately, the stakes are high as policymakers ponder the future of America’s families, aiming to ensure that their voices and challenges are heard and addressed.
