Source: United States Senator for Colorado Michael Bennet
Secretary Yellen Attributes Drop in Food Insecurity to CTC, Calling It a “Profound Economic and Moral Victory”
Washington, D.C. – Today, Colorado U.S. Senator Michael Bennet released the statement below as the U.S. Senate prepares to consider the Build Back Better Act, which will extend the expanded Child Tax Credit (CTC) for one year and make full refundability of the CTC permanent to ensure 27 million American kids can continue to receive the benefit.
The Build Back Better Act recently passed the U.S. House of Representatives and now heads to the Senate for consideration.
“By extending the expanded Child Tax Credit and making it permanently available to nearly every child in America, Congress is finally taking steps to build an economy that works for everyone, not just the people at the top,” said Bennet. “Through Build Back Better, we have an opportunity to make a historic, overdue investment in Colorado families after years of spending trillions of dollars on tax cuts for the wealthiest Americans.”
Today, Treasury Secretary Janet Yellen attributed a 24% drop in food insecurity for families to the CTC, calling it “a profound economic and moral victory.”
In March, President Biden signed into law a one-year expansion of the CTC, based on Bennet’s American Family Act, in the American Rescue Plan Act. This expansion is projected to cut nationwide child poverty nearly in half this year and benefit 90% of American children. Over one million children in Colorado are receiving advance monthly CTC payments.
“The expanded Child Tax Credit led by Senator Bennet offers a life-changing opportunity to families across Colorado with up to $3,600 per child per year which is available through a monthly payment. This is significant tax relief that can make a dent in paying rent, buying new clothes, books, and further investing in a child’s education. A one-year extension of the Child Tax Credit, while also ensuring it’s available to families regardless of their tax liability, gives hardworking Colorado families more money in their pockets,” said Colorado Governor Jared Polis.
“Thanks to Senator Bennet’s tireless leadership, over one million Colorado children will continue to benefit from the improved Child Tax Credit for another year. And by making the tax credit permanently fully refundable, Colorado’s most vulnerable families will continue to be eligible to receive the federal tax credit. This will go a long way to help parents cover groceries, rent, child care, and other monthly expenses for their families,” said Colorado Senate President Leroy Garcia.
“A permanent fully refundable Child Tax Credit that families can receive each month, regardless of how we measure their deservedness, is a historic step toward setting a basic economic floor in this country. Here in Colorado, where we have some of the highest child care costs and housing expenses, this is a welcome relief and proof of what we can accomplish when we acknowledge the challenges people are grappling with in this economy,” said Scott Wasserman, President, Bell Policy Center.
“Senator Bennet’s leadership on the Child Tax Credit is remarkable. An additional year of expanded Child Tax Credit payments will mean more food, better housing, and more economic stability for hundreds of thousands of Colorado families. By making the credit permanently refundable, Colorado’s lowest-income families will get the help they need to make ends meet. This expansion is so timely as it will build on the State Child Tax Credit that will become available to eligible families in 2022. Together these policies will support Colorado’s continued economic recovery. Coloradans are lucky to have a leader like Senator Bennet who recognizes the social, economic, and personal value of investing in families with kids,” said Carol Hedges, Executive Director, Colorado Fiscal Institute.
“Expanding and preserving the Child Tax Credit is a meaningful step towards helping vulnerable Colorado families and children have enough to eat. The pandemic has exacerbated child hunger, and in Colorado, 1 in 7 children may experience food insecurity this year. That number is far too high. While food banks have worked hard to keep kids fed, we cannot do it alone. We thank Senator Bennet for his tireless leadership to secure these federal investments that will lift millions of children out of poverty and help all families succeed,” said Effie Rorke, Senior Director, Public Policy and Communications, Feeding Colorado.
“The Child Tax Credit (CTC) is a proven public policy that keeps kids and families out of poverty. A fully refundable CTC will promote child and family well-being, boost family economic security, advance racial equity, and ensure whole communities thrive. The Colorado Children’s Campaign is pleased to see the long-time commitment by Senator Bennet and other advocates to ensure an extension and permanent full refundability of the CTC. These changes will keep the families of the 27 million kids across the country eligible to receive the tax credit, including kids in families with the lowest incomes. As child poverty, hunger, and housing insecurity continue to increase throughout the ongoing pandemic, improving the tax code is more important than ever. Tax reforms that prioritize kids and families are a crucial step toward increasing economic security, health, and overall wellbeing in families,” said Kelly Causey, President & CEO, Colorado Children’s Campaign.
“We are thrilled that the Build Back Better plan invests $600 billion in children, families and caregivers. This is an enormous win for the economy and a seismic change for millions of Americans who’ve been scrambling to afford child care for decades and have been put under additional strain by the pandemic. The expanded Child Tax Credit in particular is such a powerful tool for families to offset ongoing expenses like child care and work toward financial stability. We are also pleased to see the inclusion of a mixed-delivery model that folds pre-K into high-quality child care — whether it be home-based or center care — as this will best meet the needs of working families and fortify their freedom to make the best choices for their families. We want to thank Senator Michael Bennet for his leadership and continued commitment to our nation’s families,” said Sue Renner, Executive Director, David & Laura Merage Foundation & #CareForAllChildren.
“The expanded Child Tax Credit has provided critical support for Colorado families during a time when the costs of goods and services has been increasing. The tax credit has made it possible for many families to afford critical services like child care and health insurance for their children, and allowed parents to get back into the workplace while easing financial stress. We thank Senator Bennet for his leadership on this issue,” said Maegan Lokteff, Executive Director, Early Childhood Council Leadership Alliance.
“Every day EFAA works with families with challenges making ends meet, exacerbated by the high costs of housing and child care in Boulder County. The Child Tax Credit has provided immediate resources that have helped families pay for child care, health and education, housing, and other basic needs. This builds a brighter future for the kids in our community,” said Julie Van Domelen, Executive Director, Emergency Family Assistance Association, Boulder County.
“When parents work and contribute to the economy and a community’s quality of life they should be able to afford necessities like health care, child care, and housing. I am glad that The one-year extension of Senator Bennet’s expanded work on the Child Tax Credit in the Build Back Better budget will make this a reality. In my community of Pueblo, the Child Tax Credit is going to lift families out of poverty,” said Donald Moore, CEO, Pueblo Community Health Center.
“The one-year tax extension of the CTC will improve children and family’s situations by allowing funding to be spent on necessities like food, shelter, or utility bills. Routt County United Way thanks Senator Bennet for his efforts to get this across the finish line,” said Kate Nowak, Executive Director, Routt County United Way.
“Financial relief is so crucial for families like mine right now. My husband and I lost our jobs in the restaurant industry when the pandemic hit, shortly after that we found out we were pregnant with our first child. My husband and I are back at work but only part-time, so we are struggling to cover the basics and dig ourselves out of the debt that has piled up because of the pandemic. It’s so stressful to worry about making ends meet as I recover from birth and balance having a newborn. That’s why I’m so excited about the extension of the Child Tax Credit expansion. The extra money will mean so much to my family and it’s a huge relief. It will help us stay on top of our bills, cover the basics, and have reliable transportation to and from work,” said Robyn Boyles, Parent, Boulder County.
“An extension of the expanded child tax credit is a lifeline for our family. Child care is the single biggest expense in our household. The additional $600 helps us to hang on. We are what I would consider ‘middle class’. We don’t qualify for assistance, yet we live in and are in an unsustainable situation. I need this support while we count down the days until my oldest daughter can enroll in kindergarten,” said Samantha Heinritz, Parent, Mesa County.