American Rescue Plan Act: Expansion of the Child Tax Credit Will Reach Children Currently Left Behind

More than one-third of children (39 percent) live in families that do not qualify for the full federal Child Tax Credit. That statistic is even more pronounced when broken out by race and ethnicity. The American Rescue Plan Act's provision to make the current credit fully refundable will reach those children left behind in 2021.

Racial groups include only non-Hispanic populations. Hispanic populations may be of any race.
Source: Institute on Taxation and Economic Policy microsimulation model, January 2021