According to a study by the National Academy of Sciences, the CTC project is amongst the most successful major federal assistance programs at alleviating child poverty. The same study also noted child poverty rates are disproportionately higher for children of color. The Center on Poverty & Social Policy predicts that, if all likely-eligible children are covered, the expanded CTC has the potential to reduce monthly child poverty by up to 40 percent and that “expanding coverage to all eligible children is key to achieving the Child Tax Credit’s full anti-poverty potential, with the greatest gains to be realized for Black and Latino children.”
The Treasury Department estimates that most eligible children will receive their CTC payments automatically because their families filed tax returns in the preceding two years or used the IRS’ non-filer portal to claim Economic Impact Payments (EIPs). However, an estimated four million children will not receive automatic payments, therefore aggressive outreach is crucial in order to help the lowest-income and hardest-to-reach families access the CTC. These four million children come from very low-income families, families with immigrant parents whose children have social security numbers but who may be hesitant or unable to file their tax returns, and families not required to file taxes (for example, caregivers receiving benefits such as Social Security). The latter group may include grandparents who have dependent children in their care.
The literature indicates that minority households (most significantly Black and Hispanic or Latino households), families with the lowest income levels, and those with earnings from self-employment are among the least likely to file taxes and, thus, are most at risk of failing to claim and receive the CTC. Studies have also shown that immigrant and Hispanic populations are among the largest groups with the lowest tax-filing rates and highest amounts of unclaimed tax benefits; therefore, these families may benefit from extra assistance from trusted messengers who can help with navigating IRS requirements and forms, many of which are provided only in English.
According to the U.S. Census Bureau’s weekly Household Pulse Survey, introduction of the expanded CTC coincided with a decrease in food insufficiency in households with children. These households also reported less difficulty paying weekly expenses, which is further explained by data collected from the same survey showing 91 percent of low-income households nationally (and 93 percent in Texas) used their monthly CTC payments to cover basic household necessities (food, utilities, rent or mortgage, clothing) or education costs.
Harris County allocated the full adopted budget of this program to evidence-based interventions. A program evaluation will not be conducted for this program.