Nearly 1.7 million California children are at risk of falling back into poverty or deeper into
poverty this year because federal policymakers failed to extend the expanded federal Child Tax
Credit (CTC). Researchers already estimate that 3.7 million children nationwide fell into poverty
in January 2022.
Families with children will lose thousands of dollars they need for food, diapers, and other
basic needs because the CTC expansion ended. For example, a family with earnings of $15,000
and two children ages 0 to 5 will see their federal CTC drop from $7,200 to $1,875. A family with
lower earnings will lose even more money.
California could take action this year to reduce the harm to families who will lose the most
money from the expired CTC. Options include sending additional cash payments to CalEITC-
eligible families with children, expanding California’s Young Child Tax Credit to be more like the
federal CTC, and increasing CalWORKs grants.
