US spending on child poverty rises, targeting three key supports over time (1960–2018)

Federal expenditures on low-income children have increased dramatically in recent decades, challenging the misguided view that the US has a weak social safety net for children. These spending increases have especially targeted three key areas of support — health, refundable tax credits, and nutrition support — through means-tested programs. Federal spending on health, nutrition, and refundable tax credits for low-income children was almost nonexistent in 1960, but has since increased 17-fold, surpassing all other categories by 2018, with the exception of tax reductions stemming from the dependent deduction.

Increased federal spending is one explanation for why child poverty rates are at historic lows in the US, along with a strong economy and policies that encourage work among parents. Only 10.8 percent of US children were below the poverty line in 2018 compared to 32.9 percent in 1980, according to a consumption-based poverty measure. A similar pattern was found using an income-based measure, with the child poverty rate at 30 percent in the 1980s compared to 15.6 percent in 2016. However, our success in the battle against child poverty cannot be attributed solely to an increase in federal dollars going toward this cause. Policies that support work, family, and strong communities also play a crucial role.

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