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California lawmakers consider bill to send one-time child tax credit payments
By MADISON HIRNEISEN
THE CENTER SQUARE
(The Center Square) – California lawmakers could soon push a one-time California Tax Credit to low-income families, a measure supporters say would help families and children living in poverty.
Assembly Bill 2589, introduced by Assemblymember Miguel Santiago, would utilize the state’s budget surplus to provide a one-time $2,000 California Child Tax Credit per child ages 17 and younger to families that earn $30,000 or less per year. Under this bill, a family with children ages 0-5 could receive $3,000 per child – $1,000 of which would come from the state’s existing Young Child Tax Credit.
Assemblymember Santiago told lawmakers in the Assembly Committee on Revenue and Taxation Monday that the bill would be a “game changer” for the families of 1.7 million children who he says have “fallen into poverty” after Congress did not pass an extension of the expanded child tax credit. Under the Biden administration’s American Rescue Plan, the child tax credit was expanded from $2,000 per qualified dependent to $3,600.
“We’ve now had 1.7 million children fall back into poverty for those families who are $30,000 and below, and the inability of the federal government to step up has had devastating impacts on those families earning $30,000 and below,” Assemblymember Santiago told lawmakers on Monday.
“What’s at consequence is kids who are going to sleep hungry at night at $30,000 and below,” he later added.
In addition to an expanded child tax credit, Assemblymember Santiago’s bill would also increase the minimum California Earned Income Tax Credit (CalEITC) payment to at least $255 for those making $30,000 and under. In a bill analysis, Assemblymember Santiago estimated this would provide around 3 million California tax filers who do not have dependents with an “economic boost.”
The bill was heard in the Assembly Revenue and Taxation Committee on Monday, though a vote will be taken later.
Supporters of the bill told lawmakers Monday that more than 100,000 California families with children and half of workers without children currently receive a CalEITC of less than $100. Anna Hasselblad, a public policy director at the United Ways of California, spoke on behalf of the CalEITC Coalition on Monday, telling lawmakers that increasing tax credits “are one of the most effective ways of defeating poverty.”
“AB 2589’s per-child tax credit payment is the most targeted and effective way to meet several goals, reduce poverty, help families dealing with inflation, boost local economies and improve lifelong results for children,” Ms. Hasselblad said. “Taken together with the CalEITC minimum, this is a rare opportunity to make a big down payment on future prosperity while meeting the pressing needs of children right now.”
There are currently no associations that have stated opposition to the proposal thus far, according to a bill analysis.
At the end of March, the authors of the bill made a budget request to appropriate $430 million annually and $3.8 billion to fund the provisions of the bill, an analysis from the committee states. An official fiscal estimate is still pending.
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