Expanded tax credit, which expires Dec. 31, helped rural children most; spending bill would make eligibility permanent

Percent of children likely to benefit from tax-credit changes
(Daily Yonder map; click the image to enlarge it or click here for the interactive version)

The recently expanded child tax credit struck the biggest blow to poverty in decades, and has disproportionately helped rural children, but the benefit could go away soon unless Congress acts.

"An analysis of census data shows that about 49% of rural children were likely to have received increased child tax credits because of changes affecting low-income families. In metropolitan areas, about 39% of children were likely to have benefited from those changes," Tim Marema reports for The Daily Yonder.

The credit was expanded by the American Recovery Plan Act, which Democrats passed early this year. "Under the changes, the maximum per-child credit rose from $2,000 per child to $3,600 for children under 6 and $3,000 for children 6 and up," the Yonder explains. "The credit was also expanded to include to 17-year-olds for the first time."

The expansion reached more children in poverty because new rules made it newly accessible to the poorest families. However, it will expire at the end of the year unless Congress cements it in law permanently. One spending package before Congress would make the eligibility changes permanent and "extend the increased per-child payment through 2025," Marema reports.