Advancing an Anti-Racist Child Allowance

A child allowance can reduce poverty, improve child well-being, and help families afford the essentials that children need to thrive. It can also serve as an important tool to promote racial equity: because of the way systemic racism has shaped policies, Black, Latinx, Indigenous, and immigrant children in the U.S. have significantly higher poverty rates than White children. We believe a child allowance that provides regular, meaningful assistance to families can advance racial and economic justice as well as serve as a foundation for a more equitable and inclusive social support system.

In 2021, Congress expanded the Child Tax Credit (CTC) through the American Rescue Plan Act, modeling a version of what a child allowance can look like in the U.S. Under the expansion, CTC benefits were increased, payments were delivered monthly, and families with lower incomes became eligible for the full benefit for the first time ever. The improved CTC was a lifeline for families, lifting 5.3 million people above the poverty line in 2021, including 2.9 million children. Importantly, given the long history of the CTC and other government supports excluding and underserving Black and Latinx families, the 2021 CTC had a profound impact on families of color. This temporary expansion was a step toward transforming the CTC to function more like a child allowance, and thus we have done significant related research on families’ experiences with the CTC. Our commitment to the development of an anti-racist, inclusive child allowance for families continues to define our engagement in historical research, collaboration with families, the generation of new ideas, and advocating for a regularly delivered, meaningful cash benefit for families with children.