The rise in child poverty in the United States has emerged as a significant concern, one that could become a central issue for both presidential candidates as the 2024 election approaches. Data from the Census Bureau shows a troubling increase in the number of children living in poverty, signaling that more Americans are struggling to make ends meet.
Between 2022 and 2023, nearly one million more children fell into poverty, with 979,000 additional children under the age of 18 entering the poverty category. This brought the total number of children in poverty last year to 9,962,000. The figures are based on the Census Bureau’s Supplemental Poverty Measure (SPM), which offers a broader view of poverty than the traditional official poverty line by taking into account factors like government assistance and various expenses.
The overall Supplemental Poverty Measure showed a modest increase, rising from 12.4% in 2022 to 12.9% in 2023. However, child poverty rose at a faster rate, climbing from 12.4% to 13.7%. While these numbers paint a grim picture, they also highlight the impact that government policy can have on alleviating poverty, especially for children.
According to the Census Bureau report, refundable tax credits for parents played a crucial role in reducing child poverty. These credits, which are paid out even if a family doesn’t owe taxes, helped lift 3.4 million children — and 6.4 million people overall — out of poverty in 2023. Of these, the refundable Child Tax Credit was particularly impactful, pulling one-third of those Americans above the poverty line.
“The obvious answer to reducing poverty is to increase assistance to the poor,” said Steven Durlauf, professor at The University of Chicago and director of the Stone Center for Research on Wealth Inequality and Mobility at the Harris School of Public Policy, in a statement to Business Insider. “The effectiveness of such a policy is evident when one considers the effects of the Child Tax Credit.”
The Child Tax Credit, which was expanded and made fully refundable to $3,600 per child under President Joe Biden’s American Rescue Plan in 2021, led to a sharp decline in child poverty that year. However, this expanded credit expired in December 2021, and without its continuation, over 5 million children slid back into poverty over the following year. Despite calls for renewing the expanded credit, no legislative action has been taken so far.
As the 2024 presidential election heats up, the Child Tax Credit has resurfaced as a major policy debate. Vice President Kamala Harris has proposed reinstating the enhanced Child Tax Credit as part of her campaign platform. Under her plan, lower- and middle-income parents would receive a $6,000 credit during their child’s first year of life. Harris is positioning her proposal as a direct contrast to the policies of former President Donald Trump.
“Billionaire-bought Donald Trump’s ‘plan’ for making child care more affordable is to impose a $3,900 tax hike on middle-class families,” Joseph Costello, a spokesperson for the Harris-Walz 2024 campaign, told Business Insider. “The American people deserve a president who will actually cut costs for them, like Vice President Harris’ plan to bring back a $3,600 Child Tax Credit for working families and an expanded $6,000 tax cut for families with newborn children.”
On the other side, JD Vance, Trump’s running mate, has suggested a $5,000 child tax credit as part of their platform. The Republican National Committee (RNC) has also been vocal in blaming Harris for the rising rates of child poverty. “As this data shows, there is a terrible, direct correlation between Kamala Harris’ policies and parents struggling to keep their children housed and nourished,” RNC spokesperson Anna Kelly said in a statement. “Families across the country know that they were better off four years ago, and they are ready to return to lower costs and commonsense policies under President Trump.”
With the economy already being a top concern for voters, the issue of child poverty is likely to weigh heavily on their minds as they decide who to support. According to a Pew Research Center survey conducted from August 26 to September 2, 81% of voters indicated that the economy is a very important issue for their vote. As child poverty continues to increase, the ability of candidates to address the needs of parents could become a critical factor in determining the outcome of the election.
“The facts speak for themselves: millions of children are going to bed hungry, and parents can’t access basic needs like groceries, gas, and prescription drugs, all because polarized politicians have failed to keep this historically effective program going,” said Adam Ruben, vice president of campaigns and political strategy at the Economic Security Project, in a statement to Business Insider.
The Census Bureau’s latest report also contained some positive news. The official poverty rate, which is a more narrow measure than the SPM, declined slightly, dropping from 11.5% in 2022 to 11.1% in 2023. While this decrease is encouraging, it doesn’t fully reflect the struggles many Americans continue to face.
“The official poverty rate ticking down tells us that the macroeconomy is strong,” said Josh Bivens, chief economist at the Economic Policy Institute. “The fact that it is still 11.1% at near-full employment and the SPM rose tells us the U.S. system of anti-poverty programs needs strengthening. These programs keep tens of millions out of poverty, but if we expanded them, they’d bring tens of millions more out of poverty.”
As child poverty remains a pressing issue in the United States, the role of government assistance programs like the Child Tax Credit will be critical in shaping the national conversation. Both presidential candidates are offering contrasting solutions to address the needs of parents and children, and their policies will likely resonate with millions of voters who are feeling the financial squeeze.
Whether the expanded Child Tax Credit is reinstated or a new policy is introduced, it is clear that the economic well-being of America’s children will be a defining issue in the 2024 presidential election. As the country grapples with rising poverty, both sides will need to present a compelling vision for how to lift families out of hardship and provide them with the resources they need to thrive.
