The Child Tax Credit (CTC) underwent a significant transformation under the American Rescue Plan Act (ARP-CTC) from July to December 2021, becoming a near-universal child allowance. The expanded CTC represented a significant milestone in US social policy, included increasing the maximum annual benefit size, making the benefit fully refundable, and converting the annual payment to monthly payments. This expansion provided monthly cash payments to most low-and middle-income households with children, impacting over 61.2 million children in the US (U.S. Department of Treasury, 2021). However, after the ARP-CTC expired, the proposed extension in the Build Back Better Act was not passed in the Senate, leading the CTC to revert to its former state with a maximum benefit of $2,000 paid in a lump sum during the tax refund period. As of 2023, 15 states had implemented CTC each with differing benefit amounts and eligibility criteria. Additionally, approximately 14 other states were exploring the possibility of establishing their own CTC programs (Manzo, Bellisle, & Bruno, 2024).
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