THE NATIONAL ACADEMIES OF SCIENCES, ENGINEERING, AND MEDICINE
Division of Behavioral and Social Sciences and Education
Board on Children, Youth, and Families and the Committee on National Statistics
Committee on Federal Policy Impacts on Child Poverty
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Congressional Briefing
Thursday, September 25, 2025 – 10:30 a.m.
via Zoom
On
Pathways to Reduce Child Poverty:
Impacts of Federal Tax Credits
Federal tax credits are among the nation's most powerful tools for reducing child poverty. Temporary expansions of the Earned Income Tax Credit (EITC) and Child Tax Credit (CTC) under the American Rescue Plan Act of 2021 demonstrated the scale of impact these policies can have, lifting more than 2 million children above the poverty line and showing that alternative designs could reduce child poverty even further.
At the request of Congress in P.L. 117-328, the Consolidated Appropriations Act, 2023, this new report from the National Academies of Sciences, Engineering, and Medicine provides an in-depth assessment of how these credits worked in 2021, what effects they had across different groups of children, and the potential trade-offs of long-term policy options. Developed by a committee of experts, the report offers evidence-based insights for policymakers, funders, researchers, and advocates. It highlights how different credit designs could shape children's well-being, employment incentives, and fiscal costs, and points to opportunities for future research to strengthen policy decisions.
This briefing was for members of Congress and congressional staff only. The report was publicly released on September 25, 2025 and can be found, in its entirety, on the Web site of the National Academies Press.