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AG Nessel Joins Coalition Urging Congress to Permanently Extend Expanded Child Tax Credit

LANSING - Michigan Attorney General Dana Nessel joined 23 other attorneys general in urging Congress to permanently extend the expanded Child Tax Credit (CTC), which provides a proven and systemic solution that would lift millions of children out of poverty.

In the letter, the attorneys general call on members of Congress to permanently extend the expanded CTC in the upcoming reconciliation package. The coalition highlights how the CTC provides a solution to address the wide range of harms and costs of childhood poverty on children, families, and state governments. The coalition is calling on Congress to offer a federal solution through a permanent, expanded, and fully refundable CTC.

"Permanently extending the Child Tax Credit would benefit millions of families and would significantly reduce child poverty rates in Michigan and across the country," Nessel said. "We are calling on Congress to make this permanent extension a priority in the upcoming reconciliation package."

report by Columbia University's Center on Poverty and Social Policy estimated that the benefits from the American Rescue Plan-largely from the expanded CTC-would reduce child poverty rates in Michigan by 43.9%."

One in seven children in the country live in poverty. Low-income children face higher rates of food and housing insecurity, worse health outcomes, and decreased chances of academic and career success. Childhood poverty also has negative effects on state costs and budgets, including additional health care and special education spending, higher child protective and criminal justice costs, and lower tax payments and foregone revenue.

A permanent, expanded, fully refundable CTC would lift about half of poor children out of poverty and bring myriad benefits to millions of children and their families, from better infant health to improved chances of finishing high school, enrolling in post-secondary programs, and earning higher incomes in adulthood. States would benefit from these effects as well as from increased consumer spending in state and local economies and decreased government spending on costs such as health care and special education.

The letter also urges Congress to provide sufficient funding to raise public awareness about the CTC and make the sign-up process easier to navigate. This additional funding would help ensure that the CTC reaches the most vulnerable families and communities.

Joining Attorney General Nessel in sending this letter are the attorneys general of California, Connecticut, Colorado, Delaware, District of Columbia, Illinois, Iowa, Maine, Maryland, Massachusetts, Minnesota, Nevada, New Mexico, New York, North Carolina, Oregon, Pennsylvania, Rhode Island, Vermont, Virginia, Washington, and Wisconsin.

A copy of the letter is available here.