As families with children start receiving the first of their monthly checks from the American Rescue Plan’s expanded child tax credit, Robert Greenstein calls the benefit transformational in reaching the poorest children, and explains why it’s critical the child tax credit and expanded earned income tax credit programs be made permanent to effectively reduce poverty.

PITA: Millions of American families have started receiving payments from a child tax credit that was extended as part of the COVID relief bill passed in March, the American Rescue Plan. The Washington Post has called the new tax break “the biggest anti-poverty program undertaken by the federal government in more than half a century.”

With us to explain what this mean for American children and families is Robert Greenstein, a visiting fellow with the Hamilton Project here at Brookings. Bob, thanks so much for talking to us today.

GREENSTEIN: Oh, my pleasure, thank you.

PITA: New monthly payments started rolling out as of July 15. There were, of course, already an existing child tax credit programs and systems, what can you tell us about this expansion that’s gone through?

GREENSTEIN: This is a dramatic expansion. So, prior to passage in the American Rescue Plan, the child tax credit was a $2,000 per child annual credit. That went in full to, say, married filers with incomes up to 400,000 a year. But it shut out partially or entirely the lowest-income children in the United States.

Read the full article about expanded child tax credits by Robert Greenstein and Adrianna Pita at Brookings.