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Addison Tate

The American Rescue Plan: What Will It Mean for Children?

President Biden's American Rescue Plan will be exorbitant, but may also reduce child poverty. Image courtesy of Addison Tate.

During the month of March 2021, President Biden’s American Rescue Plan has been recently passed by Congress. The plan remains ambitious, no doubt, and incredibly expensive. In total, the proposal will cost the government $1.9 trillion dollars. The plan would distribute direct deposits and financial aid to citizens, provide relief to the economy, and increase vaccine administration. But one of the most influential and potentially revolutionary advantages of the plan might be the reduction of child poverty in America. The definition of child poverty could be summed up as the lack of income and basic necessity provided for minors; that includes food, water, clothing, and shelter. In a world where so many problems face young people every day, this plan could very well brighten the futures of countless children across the nation.


Child poverty in America has been around for ages, and the issue cannot be classified as insignificant either. According to the Center for American Progress, nearly 11 million children in the US live in poverty. The article goes on to state that 4 in 10 children who live in a household struggling to meet basic expenses, and between 7 and 11 million children live in a household without food. This type of poverty tends to occur in households affected by unemployment and pay cuts, families that deal with a transition from two parents to one, or the development of an illness or disability within a member of the house. Young children could be more likely to experience poverty because of the higher expenses that accompany child care, as well as the instability of their parent’s careers at that time. The article listed above also suggests that systematic racism exists within the poverty data as well, with rates disproportionately affecting black and Latino households. The pandemic has undoubtedly tightened the hold of poverty on children. With unemployment rates skyrocketing, parents find it harder and harder to support their families as the year goes on. Transitions to remote learning have widened the gap between quality education and low income families. Virtual school has also forced many parents to choose between being a caregiver and staying employed. Households around the country have reached their tipping point, and the children of those families suffer because of it.


Congress.gov provides the official document that outlines the American Rescue Plan. Time magazine released an article as well that does an excellent job of breaking down the main points of the plan. Perhaps the most popular aspect will be the distribution of checks to working families, amounting to $1,400 per person. Additionally, the plan expands unemployment benefits for those that have been laid off due to pandemic-related issues. The proposal includes direct housing and nutrition assistance by ensuring that families hit by the economic crisis won’t face eviction. The project will also extend the 15 percent Supplemental Nutrition Assistance Program benefit increase, which will allow many young children access to meals. And possibly the most relevant to the child poverty crisis, the American Rescue Plan raises the child tax credit up to $3,600. Although some say that the plan costs too much, a study by the Center on Poverty & Social Policy at Columbia University estimates that with all the changes and assistance that the American Rescue Plan provides, child poverty rates could potentially be cut in half.


Of course, monetary stipends will never be able to patch up the thousands of broken homes across the country. According to the National Substance Abuse and Mental Health Services Administration (SAMHSA), “1 in 8 children lived with at least one parent who had a past year substance use disorder.” Dysfunctional households cannot be repaired with a check. Nicolas Kristoff, an opinion columnist for the New York Times, addresses this issue in his recent article, titled “We are a Nation of Child Abusers”. He expresses the feeble nature of the United States poverty assistance programs, saying that “The child tax credit would help enormously, but we also need home visiting programs, high-quality preschools, lead reduction, addiction treatment and other support for moms and dads, serious efforts to combat family homelessness, and initiatives to help parents get better jobs in ways that lift them and their children out of poverty.” But the American Rescue Plan could be a massive step in the right direction, one that could mean the difference between stability and doubt in the lives of thousands. This investment in the children of America will not remain stagnant. In the same article, Kristoff states, “Child poverty costs the United States about $1 trillion annually in reduced adult productivity, increased crime and higher health care costs- so the question isn’t can we afford to help children, but can we afford not to?”


The Biden Administration, along with millions of citizens nationwide all believe in the impossibility of ignoring the impoverished children of America. The launch of the American Rescue Plan, although broad in the reaches of monetary distribution, will be a direct strike against childhood poverty. Hopefully, with the support of the citizens of the United States, the American Rescue Plan will be the first act of many that will assure thousands of children a bold, shining future.

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