Child Tax Credit Has a Critical Role in Helping Families Maintain Economic Stability

Economic assistance programs help provide low-income individuals and families with income stability, with benefits accruing not just to the families receiving assistance but to the economy as a whole. This paper reviews how cash assistance programs—the Earned Income Tax Credit (EITC), Child Tax Credit, and TANF—and other in-kind supports, such as SNAP, Medicaid, and housing assistance, serve as a backstop for unpredictable income, low income, and joblessness among low-income households who face economic transitions. The paper also highlights the critical role of the expanded Child Tax Credit, which provided families a monthly cash payment between July and December 2021.