Health Disparities
The association of the 2021 Child Tax Credit Expansion with Child Health and Development: Evidence from a Longitudinal Study Guangyi Wang* Guangyi Wang Daniel Collin Deborah Karasek Rita Hamad
The 2021 temporary expansion of the Child Tax Credit (CTC) alleviated material hardship among disadvantaged families during the COVID-19 pandemic, significantly reducing child poverty. While many studies have examined the impact of the expansion on health-related outcomes such as food insecurity and parental psychological well-being, few have linked it to child outcomes. This study investigates the association between the 2021 CTC expansion and child health and development outcomes, including self-rated health, the Strengths and Difficulties Questionnaire (SDQ), and food security. Using data from the 2020-2021 waves of the Child Development Supplement (CDS) of the Panel Study of Income Dynamics (PSID), we estimate within-person changes in outcomes for children who participated in both waves (n = 1,028). The CTC eligibility amounts before and after the expansion were calculated based on detailed benefit rules. The 2021 interview period spans November 2021 to June 2022, covering three distinct phases: 1) advanced CTC monthly payments (November–December 2021), 2) expired monthly payments (January–April 2022), and 3) distribution of remaining lump sum CTC (May–June 2022). We stratified the analysis by these periods to capture potential disparate impacts. Additionally, we examined whether the association differed by family income and race/ethnicity. The CTC expansion was associated with a reduction (i.e., improvement) in SDQ scores during the monthly payment period. However, after the CTC expansion expired, children from low-income families had worse self-rated health and higher SDQ scores compared to those from higher-income families. Differences by race/ethnicity were also observed. These findings inform ongoing state and federal poverty policymaking and contribute to theoretical knowledge on income and child health.