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By Omar Mohammed
Reporter, Economy & Finance
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House Republican Jason Smith has signaled support for a child tax credit, a policy that has historically been credited with substantially reducing child poverty in the United States—which is now on the rise.
The Biden administration's American Rescue Plan in 2021 expanded the child tax credit to the nation's poorest families, part of an effort to cushion Americans from the economic impacts of the COVID-19 pandemic. But Congress failed to extend the program and it expired at the end of 2021.
On Wednesday, Smith, the chair of the House Ways and Means Committee, the powerful body that authors tax-related legislation, suggested that he wanted to make the extension of the child tax credit permanent.
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"That's something that I have always supported. I had the legislation to make permanent the $1,000 to $2,000 in child tax credit and pushed for it," the Missouri representative said at a Punchbowl News event. "It's extremely important to working-class Americans."
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The number of children living in poverty in America more than doubled in 2022, according to the U.S. Census Bureau, after a decline the previous year that analysts say was due to the child tax credit. The payments helped to reduce child poverty to historic lows, according to the Census Bureau.
Some states have been proactive and made their local child tax credits permanent or extended the existing ones. There are now at least 14 states across the U.S. that boast the existence of the programs, according to the Center on Budget and Policy Priorities.
Smith said while his Republican predecessors as chairs of the House and Ways Committee rarely talked about it in the past he believed the child tax provision can command bipartisan support.
President Joe Biden last week said he wants to restore the policy.
"I think there is common ground," Smith said.
His support adds to the chorus of voices, particularly among Democrats, who have tried to push for a federal child tax credit extension. The challenge is whether there will be enough votes in Congress to push it through.
Some polls suggest that among voters, there appears to be cross-party support for the reinstating of the child tax credit. A Zero to Three/Morning Consult poll from earlier this year showed that 94 percent of parents who voted for a Democrat in 2022 and 77 percent of parents who voted for a Republican in 2022 said the issue was an important priority.
Overall, the poll, which was conducted from April 27 to May 1 among a sample of 811 parents of children ages 0 to 3, found that 85 percent of respondents said it was important for Congress to reinstate the policy.
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