Interventions Likely Prevented Childhood Poverty from Rising During the Pandemic
July 20, 2023:
Research has shown that since the start of the COVID-19 public health crisis, aggressive government interventions, aimed at reducing broader economic fallout as well as individual-level hardship, have been largely sucessful.1 To preempt a potential increase in poverty due to pandemic-related job loss, income loss, and health insurance coverage loss, the federal government implemented policies such as a temporary Child Tax Credit (CTC), COVID-19 rescue payments, requirements for states to maintain current Medicaid enrollment and coverage, and increased SNAP (food stamp) allotments.1,2 Evidence suggests that these targeted actions may have contributed to a small but statistically significant decrease in nationwide childhood poverty between 2019 and 2021, falling from 19.1% to 18.7%, as seen in data available on SHADAC’s State Health Compare tool.
|
Childhood poverty is defined as children whose household incomes are below 100% of the Federal Poverty Guidelines, which was $30,000 in 2021, for a family of four.3 |
In this blog, SHADAC presents 2021 estimates of childhood poverty at the national and state level based on our analysis of the U.S. Census Bureau’s American Community Survey (ACS) Public Use Microdata Sample (PUMS) file and compares them to 2019 data, as 2020 childhood poverty estimates were not released due to pandemic impacts on data collection. (Please see a previous blog for more technical detail.) We also highlight notable differences in childhood poverty estimates for different racial and ethnic populations.
Highlights from 2021 Data
Compared to the pre-COVID-era figures previously reported by SHADAC, 2021 estimates for childhood poverty were significantly lower both at the overall national level and in five particular states — Arizona, Connecticut, Missouri, Tennessee, and Utah — while no states saw any significant increases in their childhood poverty rates.3 These data highlight the surprising fact that childhood poverty declined at a time when many expected it to rise for the reasons highlighted above.
Childhood poverty rates remain highest in southern states, specifically in Mississippi, followed by Louisiana, New Mexico, the District of Columbia (D.C.), and Alabama. Consistent with 2019 data, states in the Northwest, Northeast, and Midwest regions tend to have the lowest rates of childhood poverty, with New Hampshire having the lowest rate at 9.0%, followed by Utah, Vermont, Minnesota, and North Dakota.
5 states with the lowest rates |
|
5 states with the highest rates |
New Hampshire |
9.0% |
|
Mississippi |
29.4% |
Utah |
9.1% |
|
Louisiana |
27.7% |
Vermont |
9.7% |
|
New Mexico |
27.2% |
Minnesota |
10.2% |
|
District of Columbia |
27.1% |
North Dakota |
10.3% |
|
Alabama |
23.8% |
Current survey data only allow for demographic disaggregation by race and ethnicity, specifically for African American/Black, Hispanic/Latino, non-Hispanic White, and Other/Multiple Race populations. In 2021, estimates show that one-third of children (33.9%) who identified as African American/Black were living in poverty. In addition, a quarter of children (25.7%) who identified as Hispanic/Latino were living in poverty, while 16.4% of children who identified as being of Other/Multiple races and 11.6% of those who identified as White were living in poverty, respectively.
Figure 1. Percent of children considered to be poor (<100% FPG) by state, 2021
Understanding Poverty Trends Pre- and Post-Pandemic
Despite concerns that the economic consequences of the COVID-19 pandemic would increase rates of childhood poverty, data show the opposite – a small but statistically significant decline. Combined with other research that uses measures of economic well-being, this falling poverty rate suggests that targeted pandemic-era government actions likely succeeded in their efforts to prevent further hardship during this latest public health crisis.
These positive data trends are welcome news, especially given that childhood poverty can have lasting negative effects. For example, children living in poverty are twice as likely to be exposed to adverse childhood experiences, according to a February 2023 SHADAC brief on Adverse Childhood Experiences (ACEs). Childhood poverty can also contribute to both a greater likelihood of disease onset in adulthood and limited chances for socioeconomic mobility or educational opportunity.4
Conclusions
Specific pandemic-era interventions implemented by the federal government likely contributed to a drop in childhood poverty rates between 2019 and 2021. Although programs such as the Child Tax Credit were short-lived and enacted in response to the COVID-19 public health crisis, their success in helping to reduce overall childhood poverty rates bears consideration as longer-term mechanisms to address this issue. Additionally, while overall poverty rates for children declined during this time period, evidence showing disparities in childhood poverty rates by race and ethnicity remains – likely influenced by factors such as systemic racism, social marginalization, and community-level disinvestment.4 For these reasons among others, continued research, monitoring, and advocacy efforts are vital in the ongoing fight against childhood poverty.
About the Data
The measure used for these estimates, “Percent of children considered to be poor (<100%FPG),” can be accessed through SHADAC’s online data tool, State Health Compare. These estimates were produced through SHADAC’s analysis of the American Community Survey (ACS) Public Use Microdata Sample (PUMS).
References
1. Collyer, S., Hardy, B., & Wimer, C. (2023, March 1). The antipoverty effects of the expanded Child Tax Credit across states: Where were the historic reductions felt? Brookings Institute. https://www.brookings.edu/research/the-antipoverty-effects-of-the-expanded-child-tax-credit-across-states-where-were-the-historic-reductions-felt/
2. United States Census Bureau. (2023, May 2). The Impact of the 2021 Expanded Child Tax Credit on Child Poverty. https://www.census.gov/library/working-papers/2022/demo/SEHSD-wp2022-24.htm
3. State Health Access Data Assistance Center. (2023, April 18). FPG vs. FPL: What’s the Difference? SHADAC.https://www.shadac.org/news/fpg-vs-fpl-whats-difference
4. Woolf, S. H. (2017). Progress In Achieving Health Equity Requires Attention to Root Causes. Health Affairs.https://www.healthaffairs.org/doi/10.1377/hlthaff.2017.0197