Rise in child poverty in U.S. after expiration of COVID assistance programs

According to the latest Census Bureau data, the poverty rate in the U.S. increased from 7.8% in 2021 to 12.4% in 2022

WASHINGTON – A significant increase in child poverty has been observed in the U.S. after the COVID -era welfare programs expired in 2022.

According to the latest Census Bureau data, the poverty rate in the U.S. increased from 7.8% in 2021 to 12.4% in 2022.

A more significant increase was seen for children, where the rate rose from 5.2% in 2021 to 12.4% in 2022.

This information comes from the Supplemental Poverty Measure (SPM), an instrument that differs from official poverty statistics.

It considers income from government programs and differences in the cost of living across regions of the United States.

In 2022, the official poverty income for a family of four was $29,678, while the SPM put it at $34,518 for a similar family in rental housing.

The unusually low poverty statistics in 2021 were primarily due to government pandemic relief initiatives.

One important measure was the Child Tax Credit, which gave low-income families a monthly amount based on the number of children they had for one year.

Proponents had anticipated that this credit would significantly reduce child poverty, a prediction that was borne out by subsequent data.

Although the Build Back Better Act originally proposed to extend the Child Tax Credit, it was not part of the Inflation Reduction Act passed in 2022.

While some Republicans have previously supported versions of a child tax credit, and some support a limited extension, others oppose reinstating the pandemic-era comprehensive benefit.

In 2021, one assessment speculated that the U.S. labor force could decline by 1.5 million if the tax credit were made permanent.

The potential cost, estimated at $1.6 trillion over a 10-year period, could strain the federal deficit if offsetting strategies are not adopted.