Federal benefits cuts are looming – here’s how Colorado is trying to protect families with children
By Jenn Finders, Leah Hamilton and Stephen Roll for The Conversation
Childhood poverty in the U.S. fell to its lowest level in history in 2021. The fall was largely due to the expanded child tax credit and other COVID-19 pandemic supports that put cash directly in the hands of parents and lifted millions of children out of poverty.
Once these safety net changes expired at the end of 2021, childhood poverty rebounded, surging from 5% in 2021 to 13% in 2024.
While federal anti-poverty initiatives like the child tax credit expansion have stalled, states like Colorado are increasingly leveraging their tax codes to combat poverty. The Colorado Family Affordability Tax Credit took effect in tax year 2024. It is one of the most substantial and accessible state-level programs designed to support families, potentially offering thousands of dollars to low-income Colorado parents.