Michigan parents say Harris’ plan to expand the child tax credit would be ‘a great help’

A new plan from Vice President Kamala Harris could provide a key financial lifeline for Michigan families who are struggling to make ends meet. 

MICHIGAN—Nick Chapital, a union electrical worker in Detroit, knows firsthand how tough it can be to keep up with the costs of life—especially while caring for two children with special needs. Between juggling health care expenses, managing medical appointments, and keeping food on the table, it’s a constant challenge. 

So, when the federal Child Tax Credit was temporarily expanded under the Biden-Harris administration in 2021, Chapital said that extra monthly cash provided crucial relief for him and other workers who, at the time, were struggling to make ends meet amid the pandemic.

“It was very important, especially with the construction industry, with childcare,” Chapital told The ‘Gander. “Child care is expensive in Michigan. It costs just as much as your rent. So, with two special needs children, what are you going to sacrifice? They need this to move further in life, these special classes or accommodations—so the expanded child tax credit was great.”

The expansion of the credit, made possible by Harris’ tie-breaking vote to pass the American Rescue Plan Act in the US Senate, marked one of the largest tax cuts for the middle class in history.

For Chapital and the parents of 1.9 million Michigan children, that expanded credit translated to extra cash for rent, childcare, groceries, medications, school supplies, and even the chance for their kids to join sports teams—which isn’t nearly as cheap as it used to be, Chapital said.

“When I was growing up, my father didn’t have to pay extra, but sports now cost extra because schools are underfunded,” Chapital said. “We also have a laundry list of things to sustain the classroom. Everybody chips in. It’s a community thing, and that tax credit really helps us all.”

Those payments also arrived monthly, rather than a lump sum during tax season, providing a steady financial cushion throughout the year. But that relief was short-lived.  

Attempts to extend that temporary tax relief have been repeatedly blocked by Republican lawmakers—and without action, the credit will shrink even further after 2025.

But a new plan from Vice President Kamala Harris, the Democratic presidential nominee, could make that expanded tax credit permanent. 

What’s the plan?

Harris has made economic stability for working families a key pillar of her presidential campaign. In the first 100 days of a Harris-Walz administration, she plans to fully restore the child tax credit expansion and offer even more support to parents. 

My plan will give tax cuts to 100 million Americans, including a $6,000 tax credit for families during a child’s first year of life. pic.twitter.com/FTZH8qxO7H

— Kamala Harris (@KamalaHarris) September 25, 2024

Under Harris’ proposal, the credit would return to $3,600 per child for ages 1-5, and $3,000 per child ages 6-17. A new, $6,000 tax credit for newborns would also help offset the costs incurred by parents during a child’s first year of life.

“Costs are still too high, and on a deeper level, for too many people, no matter how much they work, it feels so hard to just be able to get ahead,” Harris said at a recent rally in North Carolina.

All told, Harris’ plan would permanently extend this support to over 100 million Americans, including more than 9 million rural children and 5 million kids in veteran and active-duty families.  

In Michigan, that would mean restoring larger tax credits for 1.1 million families and nearly 1.9 million children, according to a new analysis released this week from the Harris-Walz campaign.

The extra support would make a huge difference in Michigan, where about 40% of households reportedly lack enough income to cover basic household expenses. Michigan families also spend about 14% of their income on child care, studies show. 

Currently, the child tax credit provides up to $2,000 per child under age 17 to parents earning less than $200,000 a year (or $400,000 if filing jointly). Parents can claim the credit for children, stepchildren, foster children, siblings, and step-siblings—as long as they’re claimed as dependents on their taxes. 

‘A Great Help’

Marie Adkins, a nurse in Dearborn, was among the millions of parents who benefited from the expanded child tax credit under the Biden-Harris administration’s American Rescue Plan Act. 

Adkins and her husband, a union automotive manufacturing worker, have a stable income. But even in a two-income household, raising a 10-year-old son on the autism spectrum takes a toll on their finances, she told The ‘Gander.

“That was helpful—and I believe if Kamala Harris makes it permanent, it would really help working families,” she said. “It would definitely go to my son. … He goes to a therapy center. Even though a part of that is covered by my husband’s insurance, we still pay copays out of pocket. It would go to mortgage and utilities, food and groceries—everyday expenses.”

The proposed benefit for newborns is aimed at the costs families face directly after childbirth, which reportedly average out to about $3,000 more than those without newborn babies.

Under Harris’ plan, the families of about 393,000 newborns in Michigan would receive that new tax credit during Harris’ first term—marking about $588 million to support about 98,000 newborn babies in Michigan annually, according to the latest analysis from the Harris-Walz campaign. 

“I think it’s a great help—especially for families with a newborn,” Adkins said. “Not everyone can breastfeed their babies, so if they buy formula, that costs a lot of money. And I remember when our son was a baby, the diapers and wipes were the most expensive items we had to buy.”

A substantial body of research has also found that the first year is the most important period of development for children and has long-lasting effects on future learning, behavior, and health.

And as a nurse, Adkins is also familiar with the toll of postpartum depression. She said money can’t necessarily buy happiness—but extra cash to cover the essentials certainly can’t hurt.

“With extra money you could hire help, maybe get some therapy,” Adkins said. “Mental health is something that’s often overlooked and it’s not just a disservice to the moms, but it would affect their babies and the whole family. So I think this [tax credit] could really help a lot of people.”

LaQuitta Brown, a part-time nursing assistant, also told The ‘Gander that restoring the child tax credit would make a “big difference” in her budget as she raises two young children in Detroit. 

For her, the extra cash will help keep the kids healthy and fed—her two top priorities. And with any luck, there might even be some leftover cash to help afford new school uniforms next year.

“It really helped a lot with the stresses of providing for your family,” Brown told The ‘Gander. “Even though I’m part of a two-parent income, it seems like the economy just doesn’t care about that anymore. Even with strengthening the family, extra money can help with a lot of things.”

She added: “Whatever you’re falling behind on, you can use this to get ahead.”

What does the data say?

Federal data shows the tax credit expansion played a crucial role in reducing child poverty to record lows in 2021, cutting Black child poverty by over 50% and Hispanic child poverty by 43%. In Michigan, the expansion has been credited for lifting 137,000 kids out of poverty.

A recent University of Michigan study found that families spent the extra cash largely on essentials like bills, groceries, and childcare, reducing material hardships across the board. Researchers also noted a positive impact on children’s food security and overall well-being.

“It’s not just children’s food insecurity as well,” said Dr. Natasha Pilkauskas, a professor of public policy at the University of Michigan, who has researched the impact of the expanded credit. “We know from other studies that parents usually try to shield their children first, so they’re more likely to actually experience hunger to make sacrifices for their children. But we also know being a hungry parent doesn’t lead to good parenting. So, regardless of how you might feel, I think everyone recognizes that having the whole household be less hungry is a positive outcome.”

A family with two children receiving the expanded tax credit could expect a monthly check for about $500 to $600, depending on the age of their kids. And contrary to some Republican claims, the University of Michigan study showed that parents did not use the bigger tax credits as an excuse to quit their day jobs.

“It’s $500 a month. So, it’s not that I don’t think it matters—but I’d be pretty hard-pressed to live on $500 a month. And so I think some of the concern is a little bit, perhaps, overblown,” Pilkhauskas told The ‘Gander. “I have yet to see a study that shows this was a bad thing.”

Elyssa Schmier, the vice president of government relations for MomsRising, emphasized that making the expanded credit permanent would benefit not just families, but the entire economy.

“Everyone should care about the child tax credit because it’s one of those programs that has a proven track record,” she said. “We know it works and we know it helps families. It also helps businesses and the economy. People spent that money directly in their local communities. … It’s basically about creating more stability for families, which automatically benefits everything else.”

She added: “We should want people to be better off. We should want them to be able to support their children, be healthy, stay in school, have that stability. I think that even if you don’t have children, you should want your community, as a whole, to be healthy and full.”

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