America's child poverty rate increased in 2023
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The child poverty rate increased last year, per Census data out Tuesday morning.
Why it matters: The consequences of growing up in poverty are dire and long-lasting. This number is shaping up to be a political issue heading into the November election.
Catch up fast: The number of U.S. children living in poverty dropped by almost 3 million in 2021, per the supplemental child poverty rate, which takes into account not only household cash income but also government benefits like tax credits.
- The decline was due to an expanded child tax credit that was part of President Biden's American Rescue Plan. Many families received monthly checks of up to $300 per kid.
- When the expansion expired in 2022, child poverty more than doubled, to 12.4%.
By the numbers: In 2023 the number increased again to 13.7%, exceeding the 2019 level of 12.5%, largely because the measurement took into account increases in expenses for families living in poverty.
The intrigue: The official poverty measure, which doesn't take most government benefits into account, moved in the opposite direction, declining slightly in 2023.
- That's in part because Americans saw real wage increases last year.
The bottom line: Higher wages translated to some real money gains for Americans, but for poor children those increases were outweighed by a pullback in government support.
What's next: Democrats, progressive advocacy groups, and some Republican lawmakers want to expand the child tax credit.
- Restoring the 2021 benefit and expanding it further is a key part of Democratic presidential candidate Kamala Harris' campaign platform.
- It's not clear where her opponent stands, but vice-presidential candidate JD Vance has said he wants to increase the tax credit. However, he didn't show up for a Senate vote on the issue, calling it a "show vote."
