Building back for justice means a future where all of us – no matter who we are or how much money we have – can thrive, build wealth, and prosper. Communities of color have long struggled to meet their families’ basic needs, even as they work long hours and hold down multiple jobs. Three years into a global pandemic, the economic and health situations of families, especially BIPOC families, have gone from bad to worse. The time to build back for justice is now – we can’t wait any longer to create an economy that works for all of us.  

To build back for justice, we need federal policies that reflect that goal. That’s why a first step on our path to racial economic justice is for our nation to invest in the Child Tax Credit.  

We know that the elements temporarily added to the Child Tax Credit in the 2021 American Rescue Plan— refundability, advanced monthly payments, an increased credit amount—work. With 70 percent of children in poverty children of color, expanding the Child Tax Credit targeted BIPOC households. By the end of 2021, 3.7 million children were kept out of poverty, including 163,000 Asian children, 737,000 Black children, and 1.4 million Latino children.  Some of our best economic minds have argued for its continued expansion. Without that expansion, families are suffering. In a survey conducted by ParentsTogether Action in May, five months after the final monthly Child Tax Credit was distributed, nearly half of parents who used to get the monthly payments said they could not afford enough food to feed their families.  

By the end of 2021, 3.7 million children were kept out of poverty, including 163,000 Asian children, 737,000 Black children, and 1.4 million Latino children.

We need an expanded Child Tax Credit rooted in racial economic justice that includes the following provisions: 

• We need a Child Tax Credit that is fully refundable so that the lowest income families, the families who need it the most, can receive the full credit. Before the expansion, nearly half of all Black and Latinx children were excluded from the full benefit because their families did not owe enough federal income tax to qualify.  

• We need advanced monthly payments so that families can use the child tax credit to pay for necessities including food, utilities, gas, car repairs, and public transportation. Households need regular support as they struggle to pay for goods and services due to rising costs and stagnant wages. BIPOC communities are especially impacted by rising costs and more directly impacted by inflation.  

• We need an increased amount going out to households—$3,600 for kids 0-5 per year per child and $3,000 for kids 6-17. The Child Tax Credit can help our economy prosper. Research has shown that each dollar invested in the CTC produces up to $1.50 in local economic spending and $8 in economy-wide return on investment. 

• We need tax credits that do not exclude families based on which tax identification number they use to file their taxes. One million children from immigrant households cannot access the CTC because they do not have a Social Security number (SSN). Mixed-status families contribute money to taxes and are often left out of relief, including pandemic relief. 

For the Child Tax Credit to be a force for racial economic justice, what we don’t need are provisions that directly contradict the true intentions of the Child Tax Credit—to set up children and families for long-term success so that future generations will be better positioned to attain financial security. Elements such as work requirements and means testing (a determination of whether an individual or family is eligible for government assistance based upon whether they can make do without that help) would move us in the wrong direction. Work requirements have racist origins as do means-tested programs. To build racial economic justice, we need provisions that support BIPOC communities, not hurt them. 

Despite the evidence that has been rolling in, the fight over the Child Tax Credit continues in Congress. But renewed interest in reviving a reconciliation spending package with the inclusion of critical tax policies for families makes this a key moment for us to collectively build back for justice.  Without action, in 2022 the Child Tax Credit will go back to giving wealthier families a tax season boost while leaving out families who need the support the most. Join Prosperity Now by calling on Congress to help us Build Back for Justice by expanding the Child Tax Credit.