Child Poverty Rises Sharply, Bringing Economic Policies Into Focus for 2024 Election

The number of children living in poverty surged significantly in the past year, presenting a pressing issue for both major candidates as the U.S. presidential election heats up. From 2022 to 2023, an additional 979,000 children were classified as living in poverty, raising the total number of impoverished children in the U.S. to nearly 10 million, or 9,962,000, according to the latest Census Bureau data.

These alarming figures were released as part of the Census Bureau’s Supplemental Poverty Measure (SPM), which accounts for a wider range of income sources, government assistance, and expenses than the traditional poverty metric. The SPM reflects a more comprehensive view of financial struggles in America. According to this measure, overall poverty rose from 12.4% in 2022 to 12.9% in 2023, while child poverty increased at an even faster rate, growing from 12.4% to 13.7% in just one year.

Although the increase in child poverty is concerning, the data also suggests that public policy measures have the potential to significantly alleviate this issue. Refundable tax credits, which provide payments to families even if they don’t owe any taxes, played a crucial role in lifting millions out of poverty in 2023. According to the Census Bureau’s report, these credits helped 6.4 million people escape poverty, including 3.4 million children. Among these, the refundable child tax credit proved to be particularly effective, pulling one-third of those individuals above the poverty line.

Steven Durlauf, a 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, emphasized the importance of these credits. He stated, “The obvious answer to reducing poverty is to increase assistance to the poor. The effectiveness of such a policy is evident when one considers the effects of the Child Tax Credit.”

The refundable child tax credit, which was expanded under President Joe Biden’s American Rescue Plan, became a key policy tool in the fight against child poverty. In 2021, the credit was increased to $3,600 per child and made fully refundable, leading to a significant drop in child poverty rates that year. However, this expanded credit expired in December 2021, and over the course of the following year, more than 5 million children fell back into poverty. Despite widespread calls for its renewal, there has been little legislative action on the matter.

As the 2024 presidential election approaches, the issue of child poverty and tax credits is gaining renewed attention. Vice President Kamala Harris, now a candidate for president, has put forward a proposal to restore the expanded child tax credit. Harris’ plan includes reintroducing the $3,600 credit for working families and providing an additional $6,000 tax credit for parents in their child’s first year of life.

“Billionaire-bought Donald Trump’s ‘plan’ for making child care more affordable is to impose a $3,900 tax hike on middle-class families,” said Joseph Costello, a spokesperson for Harris’ campaign, in a statement to 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.”

Meanwhile, JD Vance, Donald Trump’s running mate, has suggested a different approach. Vance floated the idea of a $5,000 child tax credit as part of their campaign’s platform. Republicans, however, have been critical of Harris’ policies, with RNC Spokesperson Anna Kelly commenting on the correlation between Harris’ tenure and the struggles families face.

“As this data shows, there is a terrible, direct correlation between Kamala Harris’ policies and parents struggling to keep their children housed and nourished,” Kelly remarked. “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.”

As the election nears, economic concerns have taken center stage for voters. According to a recent Pew Research Center survey conducted between August 26 and September 2, 81% of voters indicated that the economy is a very important issue for their vote. For parents, in particular, the worsening child poverty rate may sharpen their focus on what each candidate plans to offer in terms of economic relief.

Adam Ruben, vice president of campaigns and political strategy at Economic Security Project, highlighted the urgency of restoring successful anti-poverty programs, saying, “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.”

Despite the rise in child poverty, the broader economy still shows signs of strength, at least by some measures. The official poverty rate, which is based on more traditional metrics and excludes government assistance programs, dropped slightly from 11.5% in 2022 to 11.1% in 2023, signaling that the U.S. economy remains relatively strong overall.

“The official poverty rate ticking down tells us that the macroeconomy is strong,” said Josh Bivens, chief economist at the Economic Policy Institute. However, Bivens noted that the SPM’s increase suggests that the current system of anti-poverty programs is inadequate. “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,” Bivens explained.

With child poverty becoming a central focus in political discussions, the debate around economic policies will likely intensify as the presidential campaigns progress. Both candidates’ approaches to addressing poverty, through child tax credits and other measures, are bound to play a major role in shaping voters’ opinions as they consider which leader can best tackle the financial struggles facing many American families. As the election nears, the solutions offered by the candidates will be critical, especially in the eyes of parents and those who have been hit hardest by rising poverty levels.