Policy Basics: The Child Tax Credit

Enacted in 1997 and expanded multiple times with bipartisan support since 2001, the Child Tax Credit helps families manage the cost of raising children. The Child Tax Credit lifted 4.3 million people ― including 2.3 million children ― above the poverty line in 2018 and remains an effective tool for reducing poverty nationwide. This fact sheet outlines how the credit is helping families with low incomes, had been administered under the American Rescue Plan, and has reduced poverty and expanded children’s opportunities.