More Maine households struggled to meet their basic needs last year, according to new census data.

More than 80,000 Mainers, or roughly 6% of the population, lived below the federal poverty threshold, compared to more than 60,000 in 2022.

Rebecca Riddell, economic and racial justice senior policy lead for the nonprofit Oxfam America, said while poverty rates have increased, they remain below pre-pandemic levels, revealing the effectiveness of programs like the expanded Child Tax Credit.

"These kinds of supports, which are really part of a well-functioning social safety net, really make a difference for families," Riddell asserted. "Especially low-income families."

Riddell pointed out the tax credit helped cut child poverty in half during the pandemic but when Congress allowed it to expire in 2022, child poverty doubled to more than 12%. It is estimated a return of the Child Tax Credit would benefit nearly 40,000 low-income Maine children.

The loss of stimulus payments and anti-poverty programs outweighed a rise in incomes statewide as inflation continued to affect families' ability to buy groceries or pay their rent. Household income was up 4% last year compared to 2022 but for Black, Asian and Hispanic households, incomes held steady.

Riddell argued it should be a goal of policymakers to reverse any trends in income inequality.

"It's alarming that instead of these inequalities improving, we actually see that there could be more divergences with incomes of groups that have been historically marginalized and discriminated against falling behind the incomes of white families," Riddell observed.

Riddell emphasized raising taxes on America's wealthiest households, reinvesting in anti-poverty tax credits and raising the minimum wage would provide critical support for families in need.

A recent report found the number of Maine children living in poverty has declined but pandemic-related trauma and learning loss continue to impact their overall well-being.


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Poverty-fighting groups in Minnesota are joining the wave of officials reminding low-income households to take advantage of the state's Child Tax Credit, now in its second year, adding a new feature could provide additional flexibility.

The state adopted the credit in 2023 on the heels of Congress' temporary expansion of the federal Child Tax Credit, which helped reduce poverty rates. State leaders are trying to produce similar results here, and last year, nearly 225,000 eligible families claimed the credit.

Angela Bellmont, outreach coordinator for the Children's Defense Fund Minnesota, said this time, there is an option to receive advance payments.

"It really provides some predictable income in any area that they need, such as medical expenses or emergencies," Bellmont explained.

A person choosing the option would receive their full 2024 refund with the credit and three monthly payments spread out later this year. The installments would make up 50% of the filer's 2025 Child Tax Credit refund ahead of next year's tax season. Bellmont stressed the advance payments are optional and noted using it could limit benefits from the Supplemental Nutrition Assistance Program.

Given the tax credit is still relatively new, Bellmont emphasized they are trying to make sure people know about it.

"This tax credit is available for all families with qualifying children, regardless if they bring in enough income to pay an income tax," Bellmont outlined. "We want people to file taxes, even if they haven't in the past."

Households meeting eligibility requirements can receive a credit of up to $1,750 per child. If they are interested in the new advance payments option, the Department of Children, Youth and Families has an online tool to help calculate any impact on SNAP benefits. Minnesota also has more than 200 free tax prep sites around the state to help navigate the details.

Community action agencies in Massachusetts are asking state lawmakers to boost antipoverty programs as federal aid remains in limbo.

Gov. Maura Healy chose not to fund the agencies' line item in her proposed budget, putting critical services for people coping with food and housing insecurity at risk.

Pam Kuechler, president of the Massachusetts Association for Community Action, said a loss of funding would affect food pantries families rely on statewide.

"Things have not gotten better for folks and so we'll have to reduce the number of days," Kuechler projected. "We'll probably have to reduce the amount of food that we're able to distribute."

Kuechler said her agency's food pantry in New Bedford helped nearly 14,000 people last year alone. The agencies are requesting $7.5 million for the more than 600,000 people in Massachusetts they serve.

Community action agencies said programs offering fuel assistance, workforce development and free tax preparation to secure tax credits are more vital than ever. Data show roughly 70,000 children in Massachusetts are living in what's considered "deep poverty," or 50% below the poverty level.

Sen. Sal DiDomenico, D-Everett, said with federal aid now uncertain, it is important the agencies get the funding they need.

"This is not just money. People can feel it," DiDomenico emphasized. "This is just something that we have to get done and we have to make sure that we protect."

DiDomenico noted the Legislature's Special Commission on Poverty will release an omnibus bill this session with recommendations on how to address the state's historic wealth gap and better support programs proved to be effective in reducing poverty. He added it includes direct cash assistance, which helps families survive.

New legislation in Olympia aims to ease the burden of skyrocketing rental rates by limiting yearly rent increases to 7%. Chris Walker lives in a manufactured home community for seniors just outside of Sequim, Washington and has been organizing for rent stabilization for three years. After her monthly rates started rising sharply, she spoke with other communities and realized she wasn't alone.

"Their lot rents started to increase 30, 40, 50%. It's really disgusting what they've done. We're on fixed incomes," she explained.

Walker said capping rent increases by 7% is helpful, but is only a starting place, since average Social Security benefits increase by less than 3% annually. A new poll shows nearly 70% of Washingtonians support rent stabilization. Two companion bills in the house and senate are working their way quickly through the legislature.

Data show that for every $100 rent increases, homelessness rates go up at least 9%.

Michelle Thomas, director of policy and advocacy with the Washington Low Income Housing Alliance, said renters across the state are forced to choose between paying their rent increase and paying for their medications, childcare, or heat. She also hears from landlords who see the value of rent stabilization for their communities.

"There are many good landlords who support rent stabilization because they know they don't need to gouge their renters in order to have a sustainable rental property," she continued.

Opponents of rent stabilization worry it would deter development. Thomas said the legislation exempts new construction for 10 years, allowing time for long term development planning. Oregon and California implemented similar rent stabilization policies in 2019.


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