Monthly Child Tax Credit Cash Payments Starting In July Aim To Reduce Child Poverty With Unconditional Payments


[ad_1]

ALBUQUERQUE, NM – The check won’t arrive until mid-July, but Katrina Peters already knows what she will do with her federal child tax credit payments.

The 20-year-old mother-of-three applied to work as a driver with a food delivery app, and she set aside the extra money to repair, register and insure her car.

“I just have to make sure it’s 100%, and then I can start working and earn an income,” Peters said, cradling her baby Armani. “This is where it starts.”

Payments are a key part of the Democrats’ COVID-19 Aid Bill passed by Congress in March. But they are more than just an attempt to help families recover from the pandemic. Monthly checks of up to $ 300 per child for millions of families are part of an ambitious attempt to reduce child poverty and, in so doing, rethink America’s social safety net.

By emphasizing direct, unconditional cash aid, the payments move away from a system that for decades has tried to control how Americans spend their government aid by funneling it into food, housing or childcare.

So Peters is just as free to use the money in her car as she is to spend it on layers.

“Something huge is going on with the idea that people with the lowest incomes need cash assistance the most,” said Teague Gonzalez, director of utilities at the New Mexico Center on Law and Poverty. . “The pandemic has opened up a link with the idea of ​​giving people money and letting them decide how to use it. “

The expanded CTC payments, which are expected to start coming in on July 15, are expected to last for one year. But supporters say they want to make this permanent, that the coronavirus pandemic has exposed the inadequacies of the U.S. support system and provided the political momentum to be able to make lasting change.

Emma Mehrabi: “It could reduce child poverty by almost half. ”
Children’s Defense Fund

“If implemented well, it could be transformative,” said Emma Mehrabi, director of anti-poverty policy at the Children’s Defense Fund. “It could reduce child poverty by almost half. “

As part of the US bailout, the child tax credit provisions will increase payments and significantly increase the number of eligible families.

The practical result will be direct payments for each child to families ranging from the impoverished class to the strong middle class – $ 3,600 per year for children under 6 and $ 3,000 per year for older children.

About 39 million households will receive at least partial payments, covering about 88% of American children.

Columbia University’s Center on Poverty and Social Policy estimates that cash injections could push 45% of children living in poverty above the poverty line – reducing black child poverty by 52%, Hispanic child poverty of 45% and Native American child poverty of 62%.

In places like New Mexico, a state with one of the highest rates of children living in poverty, this is a potential crossroads. One in four children in New Mexico is considered impoverished, compared to one in seven nationally.

With three children under the age of 6, Peters is expected to earn up to $ 900 a month, which she badly needs. Her construction worker boyfriend is out of work because of the pandemic, she said, her government-subsidized housing voucher has expired, only the national moratorium on evictions has protected her and Armani has need a special infant formula that she cannot buy with her government nutrition program benefits.

“Sixteen dollars a can, and he does it in two or three days,” she said.

Senator Martin Heinrich, DN.M., said the philosophy behind the payments is to treat child poverty as a preventable traumatic event – an event that has been shown to adversely affect future academic performance, emotional stability and earning capacity as well as to do so. more likely that child will have future problems with the law.

“It affects your ability to have positive relationships, both professionally and in your family life,” Heinrich said. “The more they stack up, the more likely you are to have problems with the legal system, unsuccessful relationships, lower lifetime income.”

Jeffrey Hoehn, Executive Director of Cuidando Los Ninos in Albuquerque, NM

Jeffrey Hoehn, Executive Director of Cuidando Los Ninos in Albuquerque, NM
Susan Montoya Bryan / AP

Along with a core government recognition that raising children is expensive for almost everyone, advocates say the payments are an expression of faith in the judgment of struggling families.

“We have to trust these families to do the right thing,” said Jeffrey Hoehn, executive director of Cuidando Los Ninos, an Albuquerque charity that provides housing, childcare services. and financial counseling for mothers coming out of homelessness. “We find that our single mothers know where every penny is going. It’s just that they don’t have enough money.

Hoehn said families will have changing needs and resources, often varying from month to month, whether it’s investing the money in rent, utilities, or even therapeutic recreation activities. In a sprawling city like Albuquerque, it’s hard to find work without a car, and Hoehn said many families his group works with are looking for extra money to acquire or repair a vehicle.

Margarita Mora, who drops off her daughter at Cuidando Los Ninos in Albuquerque, New Mexico, knows what she will do with <a class=child tax credit audits. “I will be able to pay for my utilities and basic supplies, as well as gas to find work,” said Mora, an unemployed nurse’s aide. “Et je dois travailler sur ma dette.”” data-upload-width=”4752″ src=”https://cdn.vox-cdn.com/thumbor/xvlU_5TAHbKQsIf01ZD4zcWZIEk=/0x0:4752×3168/1200×0/filters:focal(0x0:4752×3168):no_upscale()/cdn.vox-cdn.com/uploads/chorus_asset/file/22544637/merlin_97720440.jpg”/>

Margarita Mora, who drops off her daughter at Cuidando Los Ninos in Albuquerque, New Mexico, knows what she will do with child tax credit audits. “I will be able to pay for my utilities and basic supplies, as well as gas to find work,” said Mora, an unemployed nurse’s aide. “And I have to work on my debt.”
Susan Montoya Bryan / AP

For Margarita Mora, the money will help cushion her family’s transition to stability. The 36-year-old mother of three had stayed at an Albuquerque motel turned into a family shelter, and would soon get her own subsidized apartment through Cuidando Los Ninos.

“I will be able to pay for my utilities and basic supplies, as well as gas to find work,” said Mora, an unemployed nurse’s aide. “And I have to work on my debt. My credit score is not that good.

The money doesn’t just go to the most needy. Carissa Oswald, a stay-at-home mom in Albuquerque whose partner works for a railroad, considers herself middle class. But after giving up her job as a caregiver to raise her 11-month-old daughter, she finds that the money is often lacking.

“Children are expensive, aren’t they? Oswald said. “It would allow us to breathe a little easier. The tension is real. The stress is real.

New Mexico State Representative Javier Martinez.

New Mexico State Representative Javier Martinez.
Provided

New Mexico State Representative Javier Martinez, an Albuquerque Democrat, calls the CLC a “philosophical shift from mid-20th century programs” like Medicaid and food stamps. “And I don’t think we’ll be going back,” he said.

The expanded CLC expires in 2022, although President Joe Biden has offered to extend it until 2025. Whether that happens could depend on the ability of supporters to demonstrate a positive impact – and whether opponents, mainly Republicans, find out evidence of waste.

“There will be a lot of compelling anecdotes on either side,” said Heinrich. “Then we’ll have the data to show the difference that made. . . . And I suspect that in New Mexico it will have a huge impact. “

[ad_2]

About Franklin Bailey

Check Also

SIBF: Shoaib Akhtar strikes a chord with audiences as he recounts a poor childhood and mercurial rise – News

Akhtar recalls how he overcame insurmountable odds to become the world’s fastest bowler Shoaib Akhtar …

Leave a Reply

Your email address will not be published.