Research Roundup of the Expanded Child Tax Credit: The First 6 Months

Since the introduction of the first monthly Child Tax Credit payment in July 2021, a continuous stream of research has emerged tracking the impact of this new policy on the lives of children and their families.  This roundup compiles the range of publicly available information on what we knew in the first six months about who has received it, how families are using it, and how families have fared since the monthly payments began. The evidence is reviewed and organized across eight central themes: access; income; poverty; spending; food; financial stress; employment; and equity.

The weight of the evidence is clear: in its first six months, the expanded Child Tax Credit has shored up family finances amidst the continuing crisis, reduced child poverty and food insufficiency, increased families’ ability to meet their basic needs, and has had no discernable negative effects on parental employment. 

Key Findings

• The expanded Child Tax Credit has reached the overwhelming majority of children, but outreach to newly-eligible families with low incomes should still continue

• Monthly payments are buffering family incomes amidst the continuing COVID-19 crisis

• Monthly payments are reducing child poverty

• Families are spending the Child Tax Credit on food and other basic needs

• Monthly payments are reducing food insufficiency

• Monthly payments may be reducing financial stress and other hardships

• There is no evidence that indicates the monthly payments are reducing employment

• The expanded Child Tax Credit matters for racial equity

This round up is a living document; findings reflect information available through mid-December 2021 and immediately evident short-term effects. This paper was subsequently updated in November 2022 to reflect new evidence. We invite researchers to share additional sources for incorporation into future updates.

Published December 22, 2021