The Effects of the 2021 Monthly Child Tax Credit on Child and Family Well-Being: Evidence from New York City

The temporary monthly child tax credit implemented in 2021 had the potential to affect many aspects of child and family well-being, including poverty, hardship, use of food pantries, spending on child-related items, and parents’ mental health and employment. The authors assess these effects using data from two longitudinal studies of well-being in New York City. They find that the monthly child tax credit led to significant declines in the risk for facing material hardship, multiple hardships, running out of money, and using food pantries. The authors do not find evidence of significant changes in parents’ mental health, employment, or spending on childcare or enrichment activities.