Poverty drops in California but only because of child tax credit, COVID relief funds

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Poverty drops in California but only because of child tax credit, COVID relief funds
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Poverty fell in California during the COVID-19 pandemic largely due to state and national safety net programs — especially the expansion of federal child tax credits.

At the federal level, experts said the most impactful poverty relief was the expansion of the child tax credit, which paid families $3,600 for each child under 6, and $3,000 for children ages 6 to 17.In San Diego, some who received the extra money from the child tax credit say it definitely made a difference.

Still, she worries about affording that $1,600-a-month apartment and acquiring beds and furniture. But just having a roof over their heads will be a relief, she said, likely safer than sleeping in a car or at some of the shelters. But more money can feel like less with inflation. The Bureau of Labor Statistics’ quarterly index shows wages and salaries rose by more than 5% in the fiscal year ending in September — but when adjusted for rising prices, real wages and salaries declined by 3%.

That’s how Rosalee Reyes, 29, said she spent her child tax credit. Reyes, her partner and their 18-month-old baby, Elly Rose, had been living in an apartment but recently moved into a temporary shelter adjacent to San Diego’s Civic Center downtown. Valdez said she recently assisted a father who earned $27,000 a year but was living on the streets with his two children. He was unaware that stimulus funds were available because he had not filed tax returns, Valdez said.

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