2021 marked the end of federal stimulus checks even as prices rose to unprecedented levels in 2022. With Biden tied down by the Republicans and rebels within his party, it was left to the states to come up with relief stimulus checks for residents. This to an extent helped residents tide over the record prices.
But the stimulus checks from the states were nowhere as large and wide-ranging as the federal payments. The last of the stimulus checks, the third, sanctioned by President Biden through the American Rescue Plan Act provided comprehensive relief to Americans. President Biden signed the ARPA in March 2021, immediately after he came to power in January of the same year.
But this would prove to be the last of the stimulus checks linked to the pandemic. The extended unemployment check that was sent out weekly continues to the first week of September.
One of the most successful stimulus checks support from the federal administration was the expanded version of the Child Tax Credit stimulus check. The month’s advance stimulus checks to parents helped millions of families stay out of poverty for the first time in years.
For the first time, the Child Tax Credit stimulus check was given out as an advance against the 2021 income tax returns to be filed in the first quarter of 2022. Parents received 50% of the CTC stimulus checks as an advance over 6 months between July and December 2021.
The payments ranged between $250 and $300 and even filers who had zero tax liability received the stimulus checks for the first time. Earlier only taxpayers were eligible for the funds but for the first time, it was given even to filers whose incomes were too low to attract any income tax. This helped parents and children who genuinely needed government support to access the funds.
The Child Tax Credit Stimulus Checks Had An Anti-Poverty Effect
The expansion of the Child Tax Credit led to an unprecedented reduction in poverty in the United States, particularly for children. The 2021 payments showed the effectiveness and the potential of federal polity to confront the problem.
The CTC stimulus check affected child poverty in states and caused a substantial poverty reduction. Poverty was reduced the highest in low-cost, high-poverty states. These were states with a relatively lower cost of living but with a higher poverty baseline.
The expansion of the Child Tax Credit in 2021 led to a historic reduction in poverty levels in America. This was particularly true for children. There was an immediate and substantial drop in poverty with the introduction of the CTC stimulus check. Records from the US Census Bureau alone revealed that child poverty was at its lowest in 2021, which was 5.2%.
Further, the CTC benefits going out monthly had a stable effect and reduced volatility in poverty levels and income. Research had revealed that this volatility and uncertainty linked with the income of low and moderate-income Americans was a major reason that compromised children’s and their families well being.
This dramatic poverty reduction was directly linked to the CTC stimulus check and was one of the few instances where a government policy brought about immediate changes in society.
There is a potentially bigger economic increase in security that has run longer schemes for low and moderate-income families. But for the immediacy of its effect, the expanded version of the CTC stimulus check was unparalleled.
The support in regular income levels brought about changes in the total lifestyle of such households and increased the stability of families. Without the apprehension that normally assailed families across the countryside, the benefitting families were able to concentrate on educating their children and providing cash and other support to promote stronger educational, health, and emotional outcomes.
The 2021 stimulus check was also unique in that it extended 100% refundability to families who had nontaxable income. Families with children up to the age of six received $3,600 per child while for those aged between six and seventeen, the amount was $3,000.
Marginalized Communities Benefitted For The First Time From The CTC Stimulus Checks
Studies have revealed what we have known for a long. the largest beneficiaries of the stimulus check were the Hispanic origin, the blacks, the Alastia native, and the Native Americans. The studies revealed that children from all ethnic and racial groups saw a more marked decline in poverty across families.
While it is obvious whether the expanded version of the CTC stimulus check reduced poverty, their end marked a new low for the Probalicans.
There is a vast difference in income levels for states with the coming of the inflations. And more importantly, states vary on the cost of living, something that has always remained well documented as supply gaps in housing and the high cost of housing assailed many families.
State Stimulus Check Not Sufficient To Bridge The Gap In Income
For residents of the 20-plus states, the stoppage of the stimulus checks was particularly galling. They had been able to continue to look after their children, and it was particularly difficult to accept the sudden gasp as they had expected it to continue through 2025. The state stimulus checks have continued to be a great support for Americans.
States such as Colorado and California have continued with their stimulus check programs. Up to $1,044 will be available to millions of residents through an assistance stimulus check. To avail of this opportunity, the states must submit their application by the announced deadline.
The Colorado funds have been marked for low and moderate-income families who are particularly finding it difficult to pay for heating, rent, and property taxes.
The assistance checks will go out to single taxpayers with a total income of less than $16,925 while joint filers should have a combined income of not more than $22,858. They must also have resided in the state between January 2022 through the end of that year.
To be eligible, residents must also meet either one of the following requirements. They must be 65 years or older. Or they must be a surviving spouse aged 58 or older. They will not be considered if they divorced before the death of their spouse.