September 16, 2021

Moulton Helps Deliver $27.7 Million to MA-06 Through the Child Tax Credit

Salem, MA. — Today, Representative Seth Moulton announced that Massachusetts’ Sixth District received $27.7 million in payments from the American Rescue Plan’s Child Tax Credit program since it began in March 2021. Since the beginning of the COVID-19 pandemic, Moulton has been a fierce advocate for financial support to families, nonprofits, and businesses in the Sixth District and beyond who are reeling from the economic crisis caused by the pandemic. 

“We know that parents who receive a child tax credit spend it on their kids. We’re talking about an amount of money that roughly shakes out to an extra paycheck. Families right now are spending that on groceries, backpacks, babysitters and school supplies,” Rep. Moulton said. “This small amount of money pays off throughout a child’s life. Kids whose families receive a child tax credit are more likely to graduate high school, go to college, and land a job that pays them a good wage. They’re also more likely to be healthier, and our communities are more likely to be safe when the families in them have a little more money. It’s hard to overstate how high the return on investment is not just for individual families but for society writ large.” 

The American Rescue Plan expanded the Child Tax Credit for 2021 to get more help to more families battered by the economic pandemic. The credit increased from $2,000 per child in 2020 to $3,600 for each child under age 6. For each child ages 6 to 16, it’s increased from $2,000 to $3,000. It also makes 17-year-olds eligible for the $3,000 credit. To get money to families sooner, the IRS is sending out half of the 2021 Child Tax Credit this year in monthly payments. 

According to the Brookings Institution, children whose families get more in refundable tax credits do better in school. Researchers from Harvard and Columbia found that children from families that receive child tax credits score higher on standardized tests. They also are more likely to graduate high school, complete college and land jobs as adults according to researchers at Syracuse University and the University of Michigan.

The benefits aren’t just financial. Children from families that receive child tax credits are also less likely to face the early onset of disabilities and health issues like diabetes that can make it harder to land a job later in life. 

The economic and health benefits for low income families pay dividends to the entire nation. According to a Columbia University study, each $1 invested in the Child Tax Credit returns more than $8 to society in improved health for children and their parents, better educational outcomes and higher future incomes, and reduced crime and criminal justice costs. 

The White House estimates the American Rescue Plan will lift more than five million children out of poverty this year, cutting child poverty by more than half – and the expanded Child Tax Credit is the single-largest contributor to this historic reduction. Prior to the American Rescue Plan, lower-income families often received a smaller Child Tax Credit than families with higher earnings because the tax credit was only partially refundable.

The bill did not receive a single Republican vote. 

 

###