With President Biden’s domestic agenda derailed for now, it will take a bipartisan...
rate increased from 12.1 percent to 17 percent, the highest rate since the end of 2020.
On average, the annual tax credit benefit for families in 2021 was $4,380, or roughly $365 per month,. The poorest 20 percent of families who benefited from the program’s expansion increased their incomes by more than one-third. From July through November, the tax credit lifted roughly 800,000 children out of poverty.
The good news is that there is bipartisan interest in restoring the tax credit as a standalone bill, which would require 60 votes in the Senate. Sen. Mitt Romney, a Utah Republican, has floated a proposal that would bring back the direct monthly payments, albeit with stringent work requirements. While there is merit to consolidating welfare benefits that are duplicative and confusing for needy families to access, we would urge caution on a wholesale overhaul of the social safety net. States such as Texas rely on federal block grants from many of these programs to disburse aid to residents with the lowest incomes. Blanket work requirements could be problematic for the 1.6 million Texas households who receive SNAP benefits.
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