The U.S. Census Bureau is out with new findings showing that the nation's child poverty rate has more than doubled, to 12%. Policy experts say a key decision by Congress is the main factor, and reversing it isn't the only action that could turn things around.
The dramatic increase in the 2022 child poverty rate came just one year after it reached a historic low of 5%.
Samantha Waxman, deputy director of state fiscal policy research with the Center on Budget and Policy Priorities, said things such as inflation likely contributed -- but there was a much bigger force at play.
"The number reflects the expiration of pandemic-assistance programs," she said, "including the expanded Child Tax Credit."
Under the American Rescue Plan, the credit was temporarily expanded to $3,600 for children age 6 and younger and $3,000 for older kids. However, negotiations failed in making it permanent. Some states are now adopting their own similar credit, although North Dakota isn't among them. Other analysts say states can boost their minimum wage to help families. North Dakota's is still at $7.25 an hour.
North Dakota lawmakers won't meet again until 2025. This past session, they did expand access to free school meals. Poverty-fighting groups have said it was a positive step, although not as much as they wanted.
Meanwhile, Waxman said the Child Tax Credit isn't exactly a "red-state, blue-state" issue.
"For example, this year in Utah, they created a new Child Tax Credit," she said, "so I think there is [a] possibility around the country."
A handful of other conservative-led states, such as Oklahoma, have their own version of the credit, in addition to several other traditionally "blue" states. As for the Census data, its report also notes that median household income fell by more than 2% last year. It's now just about $74,500 a year.
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Some Missouri nonprofit groups have teamed up to help those in need in the rural southeastern part of the state.
Many households in these communities struggle to pay their electric bills, as poverty rates are 10% higher than the state average. The local electric utility provider has been criticized for not doing more to help alleviate the financial burden. In response, Renew Missouri is partnering with churches and other nonprofits to help people get signed up for state and federal energy assistance programs.
Jessica Polk Sentell, eastern director for Renew Missouri, works with the Ministerial Alliance at its food banks.
"I have been there with some literature and educational materials," Polk Sentell explained. "To help bring some education and some visibility and some outreach, to these programs that help people pay their energy bills."
She pointed out Renew Missouri's mission is to advance renewable energy and energy efficiency in the state. To be eligible for assistance, you must be a Missouri resident, a U.S. citizen or legal permanent resident. You must have no more than $3,000 in bank or retirement accounts, or investments and meet the income guidelines for your household size.
Brian Abbott, pastor of Trinity United Methodist Church in Piedmont, also serves as president of the local Ministerial Alliance. He said there are many people coming in for help and while they do their best with food banks and food trucks, it is a growing challenge.
"We don't have the resources, coming out of COVID and a lot of other things that have gone on in the last five years or so in the economy," Abbott emphasized. "It's really left a gap there for us, you know. We're telling a lot of people, 'We understand you may have a shut-off notice, but we just don't have the funds to help with that.'"
The Renew Missouri initiative is also bringing relief to under-resourced Community Action Agencies, which often struggle to connect households with resources to help pay their energy bills.
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A Legislature-backed Commission on Poverty in Massachusetts aims to address the state's historic wealth gap.
The commission will study demographic disparities and existing programs to reduce poverty over the next decade, and has been holding public hearings to gather feedback.
State Sen. Sal DiDomenico - D-Everett - said Massachusetts has the highest median wage for workers in the nation, but one of the greatest gaps between wealthy and low-income individuals.
"So we know we have much work to be done in this commission," said DiDomenico, "to bring more equity to the table when it comes to residents across the Commonwealth."
DiDomenico said it's unacceptable that roughly 70,000 Massachusetts children live in what's considered "deep poverty" - or 50% below the federal poverty level.
He said efforts to undo those numbers should be a top legislative priority.
Sixty years after the launch of President Lyndon Johnson's "War on Poverty," community action agencies in Massachusetts say data reveal which policies are most effective.
Expanded tax credits and stimulus payments were shown to help cut childhood poverty in half during the pandemic, and efforts continue to grow guaranteed basic income programs.
Laura Meisenhelter is board president of the Massachusetts Association for Community Action (MASSCAP), a coalition of more than twenty community action agencies.
She said they're responding to local needs while working for systemic change.
"We confirmed," said Meisenhelter, "both large and small changes to public policy and programs and practices can have an enormous impact."
Meisenhelter said agency staff visit clients at nursing homes, aid parents in buying Christmas gifts, and help ensure that people's basic needs such as food, clothing and diapers are met.
She said that need is increasing as the poverty line set decades ago has not kept pace with the increasing standard of living.
The Commission on Poverty's next public hearing will take place later this year in the Fall River and New Bedford area.
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The City of Little Rock is part of a national grant program designed to improve the financial status of Black communities.
The Cities for Financial Empowerment Fund's CityStart initiative works with local governments to create programs to help families become more financially stable.
James Owen, policy adviser and special project manager for the mayor's office, said they are being advised by Bloomberg Philanthropies' Greenwood Initiative, which has a mission to address systemic underinvestment in Black communities.
"This CityStart grant is an opportunity for us to mitigate and improve upon some of the policy failures of the past that have really led to some disparity when it comes to wealth and income in different parts of Little Rock," Owen explained.
Grant recipients receive $75,000 to address the issues. Other cities winning grants included Chicago, Philadelphia, Indianapolis and Buffalo.
This is the third grant the City of Little Rock has received from the Cities for Financial Empowerment Fund. All of them have addressed financial and wealth disparities. Owen noted the funding will allow them to hear from the people.
"We don't necessarily think that us sitting up at City Hall, that we have the answers," Owen acknowledged. "We want to hear from the residents, what are their financial pain points? And so we want to do that heavy community engagement work and talk to our residents so that we can address those directly."
Forty municipal governments have participated in the CityStart program in the past. Owen added Little Rock will study what other cities have done to see if similar programs might work there.
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