On Friday September 17, Rep. Jamaal Bowman, U.S. Department of the Treasury Deputy Secretary Wally Adeyemo, Senate Majority Leader Chuck Schumer (D-NY), and Senator Kirsten Gillibrand (D-NY) on Friday held a roundtable at the Nepperhan Community Center in Yonkers to celebrate the progress of the Child Tax Credit in reducing child poverty across the country and to discuss further pathways for federal partners to invest in families through the Build Back Better agenda. The members of Congress and Deputy Secretary Adeyemo were joined by New York Senate Majority Leader Andrea Stewart-Cousins and Nepperhan Community Center Executive Director Jim Bostic, and local parents Raquel Ali, Norberta Guerrero, and Diana Sanchez shared their personal reflections on how the tax credit has helped to support their families. The roundtable came two days after the third CTC payment was distributed to recipients on Wednesday.
The Child Tax Credit in the American Rescue Plan provides the largest child tax credit ever and historic relief to working families. This expanded credit provides automatic monthly payments for nearly all working families through this advanced tax relief that started in July 2021. In July alone, the first installment of the expanded CTC lifted 3 million children out of poverty, according to a Columbia University study. The expanded CTC will also generate nearly $19.3 billion in spending in local economies each month nationwide, according to the Joint Economic Committee. Among families who responded to a Census Bureau survey, 47% spent their CTC payment on food, 28% spent it on internet and other utilities, 26% spent it on school expenses, and 17% of those with at least one child under age 5 spent it on child care. The average benefit for NY-16 households is $2,800, and families with children in poverty will receive an average of $4,300.
“Poverty does not happen in isolation or because of a lack of hard work. It comes from a systemic, intergenerational absence of resources that denies individuals the opportunity to meet their potential,” said Rep. Bowman. “Poverty is a policy choice, one that has disproportionately impacted communities of color — communities like Yonkers and others throughout NY-16. We’re already seeing results: the expansion of the Child Tax Credit in the American Rescue Plan has been a game changer for families during this pandemic, and it should be made permanent. I’m looking forward to continuing to work alongside Sen. Schumer, Sen. Gillibrand, Deputy Secretary Adeyemo, and others throughout Congress and the Biden administration to keep pushing bold anti-poverty policies forward.”
“This week, more than 60 million children benefited from the third round of the advance Child Tax Credit – including 3.2 million children in New York,” said Deputy Secretary Adeyemo. “This monthly tax relief is helping families cover basic essentials like groceries, clothing, and back-to-school supplies, which is why we continue to do all we can to sign people up and shine a spotlight on the meaningful impact this relief is having on the lives of children across the country.”
“Help is here for 3.2 million New York children whose families received the third round of the advance Child Tax Credit this week,” said Sen. Schumer. “As one of NY’s largest cities, one in five children in Yonkers live in poverty and deserve every resource possible to make for a brighter future. The expanded Child Tax Credit is an important resource for parents in the fight against child poverty and I will continue highlighting this relief for working families throughout Yonkers weathering the ongoing effects of the pandemic.”
“The expanded Child Tax Credit is your government at work. We promised that help was on the way, and it’s here,” said Sen. Gillibrand. “Now we must make sure that transformative economic policies like the Child Tax Credit continue because we know families in Yonkers and across New York State needed this support way before the pandemic, and the need for financial relief continues to grow. I will continue fighting alongside my colleagues, Senate Majority Leader Schumer and Representative Bowman to make the Child Tax Credit permanent.”
The American Rescue Plan expanded the Child Tax Credit to up to $3,600 per child for children ages 0 to 5 and $3,000 per child for children ages 6 to 17. It also authorized advance monthly payments of the Child Tax Credit through December 2021. Qualifying families can get up to $300 a month per child for children ages 0 to 5 and $250 a month per child for children ages 6 to 17. Families qualify for a full credit if their income is below $75,000 for single filers, $112,000 for people filing as head of household, or $150,000 for people who are married and filing jointly.
