In February 2022, the US Department of Health and Human Services released a report examining the impact of these transfers on the poverty rate. Aid payments prevented millions of families, especially those with young children, from falling into poverty, according to the statistics.
Politicians seeking to ease the economic troubles many people are now facing would do well to replicate the two Stimulus Check packages responsible for keeping 10 million people out of poverty. An estimated 7.9 million people were kept out of poverty thanks to ARP Act economic impact payments, according to an HHS analysis published in February.
The expanded Child Tax Credit has helped to alleviate poverty for an extra 2.90 million individuals. There were 1.80 million children in the total population of 2.9 million.
Stimulus Check For 10 Million Residents
This ignores the fact that other Stimulus Check policies, such as higher unemployment compensation, contributed to raising the incomes of millions of people. Two objectives were met by the combination of stimulus money and early Child Tax Credits:
To help the economy, the EIP payments provided eligible individuals and their dependents with $1,400.
The original Child Tax Credit was increased to $3,600 for children under age six and $3,000 for children aged six and above thanks to the Advance Child Tax Credit. The previous cap under the previous standards was $2,000. The original credit was for $1,400, but with the increase, the whole sum is now recoverable.
A refundable credit may give back more to taxpayers than they paid in taxes, rather than merely reducing their bill to zero. Advance Child Tax Credit Stimulus Checks were dispersed at a rate of $300 per month or $250 per month from July through December, but the original Child Tax Credit was only accessible when tax returns were filed.
