The expanded child tax credit was brought into being by the American Rescue Plan Act in the spring of 2021, meaning that most American families received direct payments once a month for the last six months of last year. Democrats in the White House and Congress had hoped to extend the credit into the future, but the Build Back Better package—which would have extended it by one year—failed in the Senate in December, bringing the 2021 tax credit to an end.

For months, Democrats’ plans to revive the credit through unilateral or bipartisan measures have faltered, and it appears unlikely that such a thing will happen in the near future.

Now, in lieu of Congressional action, some states have stepped up to provide child tax credits of their own, though usually at lower levels than the federal one. One organization that backed the federal tax credit has encouraged that approach.

The Center on Budget and Priorities (CBPP), which has long supported the expanded child tax credit and continues to support its revival, called for such credits at the state level in a recent blog post. 

“Child tax credits (CTCs) are an important way that policymakers can help families make ends meet, help children thrive now and in the future, and help families and communities recover from the pandemic,” Samantha Waxman, a policy analyst for CBPP, said in the post. “The federal credit should be expanded, and states should also create and improve their own CTCs (among other tax credits that help households with low incomes).”

The blog post also noted that nine states have passed refundable child tax credits—California, Colorado, New Mexico, New York, Virginia, Maryland, and Massachusetts—while Idaho, Oklahoma, and Maine have passed nonrefundable credits.

CBPP argues that the credits do three things: “Reduce poverty and help families afford the basics,” “Support healthy child development and families,” and “Boost local and state economies.” 

“Federal and state child tax credits are an effective way to target tax reductions to people and communities that could most use the help,” the blog post said. “People of color, immigrants, and women are among those who have been disproportionately impacted by the economic downturn. Rising food and energy prices also continue to strain families’ budgets, making it harder for them to afford basics like food, gas, and rent. With most state tax systems already asking the most as a share of income from families earning the least, a child tax credit that works for low-income families can help make the tax code fairer while easing the strain on families’ budgets.”

Stephen Silver, a technology writer for The National Interest, is a journalist, essayist and film critic, who is also a contributor to The Philadelphia Inquirer, Philly Voice, Philadelphia Weekly, the Jewish Telegraphic Agency, Living Life Fearless, Backstage magazine, Broad Street Review and Splice Today. The co-founder of the Philadelphia Film Critics Circle, Stephen lives in suburban Philadelphia with his wife and two sons. Follow him on Twitter at @StephenSilver.

Image: Reuters.