REDUCE CHILD POVERTY
Modest changes to nine policies and programs we know work can be combined to reduce child poverty by 60 percent and lift 6.6 million children out of poverty, at a cost of $77.2 billion for one year.
Create subsidized jobs
Subsidized jobs increased employment and income during and after the recession and benefited long-term unemployed most. CDF found that a subsidized jobs program for 16-64 year olds in families with children would add 2.5 million jobs, and lift 1.2 million children out of poverty.
Increase Earned Income Tax Credit
The Earned Income Tax Credit, a refundable tax credit for working families, efficiently reduces child poverty. CDF found that increasing the EITC for the poorest families would reduce child poverty nearly 9 percent and lift 1 million children above poverty.
Raise minimum wage
30 percent of poor children in America live with an adult who works full-time year-round. CDF found that increasing the minimum wage to $10.10 would lift 400,000 children above poverty.
Expand child care subsidies
To work, parents need access to affordable high-quality child care. Due to limited funding, fewer than 1 in 5 eligible children benefit. CDF found that ensuring access to all families below 150 percent of poverty would lift 300,000 children above poverty.
Make Child and Dependent Care Tax Credit refundable
CDF found that making the CDCTC fully refundable and increasing its value would reduce child poverty by 1 percent and lift 146,500 children above poverty.
Pass through and disregard child support
CDF found that passing-through to families all child support collected by states, exempting that income in the calculation of TANF benefits, and exempting up to $100 for SNAP benefit calculations would lift 89,300 children above poverty.
Make Child Tax Credit fully refundable
The Child Tax Credit (CTC) provides families a $1,000 for each child under 17. The poorest families do not receive the full amount of the partially refundable credit. CDF found that making the CTC fully refundable would reduce child poverty nearly 12 percent and lift 1.3 million children above poverty.
Increase SNAP benefits
The Supplemental Nutrition Assistance Program (SNAP) benefits are not large enough to ensure children aren’t hungry. CDF found that increasing SNAP benefits by 30 percent for families with children would reduce child poverty 16 percent and lift 1.8 million children above poverty.
Expand housing subsidies
Only one in four eligible families with children receives federal housing assistance. CDF found that ensuring access to all needy families with children below 150 percent of poverty would reduce child poverty nearly 21 percent and lift 2.3 million children above poverty.