Monthly poverty rose in April and May 2022 after temporary tax time dip
Monthly poverty rates rose in April and May 2022, following the temporary dip in March when most refundable tax credits were delivered to families who filed a federal tax return. The monthly poverty rate for the total US population in April 2022 was 13.0 percent—up from 10.8 percent in March—and ticked up to 14.1 percent in May 2022. The monthly child poverty rate in April was 14.1 percent—up from 9.9 percent in March, when most Earned Income Tax Credit and the balance of expanded Child Tax Credit payments were delivered—and rose to 16.6 percent in May. The May 2022 child poverty rate reached levels similar to those seen earlier this year (16.7 percent in February and 17.0 percent in January 2022) in the wake of the expiration of the monthly expanded Child Tax Credit payments at the end of 2021.
January 2022 marked the first month after the American Rescue Plan’s expanded Child Tax Credit monthly payments expired and child poverty rates increased sharply in response. Monthly child poverty was 4.5 percentage points (37.3 percent) higher in May 2022 than December 2021, representing 3.3 million additional children in poverty in May relative to December. Our work has shown that monthly benefit delivery has the power to smooth income volatility and reduce child poverty on a consistent basis year-round.
Monthly Poverty Rates Across Age Groups, January 2021 - May 2022
Measuring Monthly Poverty
In 2020, we established a novel method of forecasting poverty to provide monthly projections of poverty using the Supplemental Poverty Measure. Using a monthly framework, we are able to track poverty amidst changing economic circumstances as the COVID-19 pandemic and federal policy responses continue to unfold. Visit our data page to see monthly poverty trends for the US population as a whole, as well as by race/ethnicity and age groups.
Suggested Citation:
Center on Poverty and Social Policy, Columbia University. 2021. Monthly poverty rose in April and May 2022 after temporary tax time dip. Monthly Poverty Update.