Census Bureau: Economic hardship declined in households with children as Child Tax Credit payments arrived

According to the U.S. Census Bureau, a drop in the number of households with children that reported food insufficiency and trouble paying household expenses may be linked to the child tax credit checks issued last month, according to new Household Pulse Survey (HPS) results.

The Internal Revenue Service last month (July 15, 2021) began issuing a monthly Advance Child Tax Credit (CTC) to families with children. 

About 35 million eligible families received the first monthly payment of up to $300 for each child age 5 and under and up to $250 for each child ages 6 to 17. Payments will continue monthly through December.

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The U.S. Census Bureau’s experimental HPS collected survey responses just before and just after the arrival of the first checks.

The survey shows introduction of the CTC coincided with a drop in food insufficiency in households with children. It also showed that in those households, there was a drop in difficulty paying weekly expenses.

Continue reading to learn more about:

• Food insufficiency dropped quickly after checks arrived
• Financial hardship of families with children also dropped
• Families spent CTC on their children
• About HPS