Article 3
Article 3
Article 3
Since the 1960s, America has made major strides in poverty reduction, and
yet, there are still 35 million people living in poverty in the United States.
What’s more, poverty would be twice as high if not for decades of significant
investments through Social Security, unemployment insurance, nutrition
assistance, and low-income tax credits, among other successful anti-poverty
programs. However, the concerning reality is that the COVID-19 pandemic
and associated economic fallout obliterated those gains, putting individuals
and families at a greater risk of being pushed into poverty.
As of May 2021, more than 9 million Americans were unemployed, 19
million adults and up to 8 million children had experienced food insecurity,
and more than 10 million renters were behind on rental payments.
Communities of color and other underserved families have been hit
particularly hard by the pandemic and subsequent economic downturn:
Black, Indigenous, and Latinx communities have seen higher rates of
infection, hospitalization, and death as well as unemployment. Likewise, the
disability community has been disproportionately affected by high rates of
mortality at congregate facilities, inequitable vaccine rollouts, and delayed
stimulus payouts to individuals on Social Security and Supplemental Security
Income.
Navigating through the current crisis and rebuilding better and stronger
requires policymakers to take immediate action to provide equitable
economic relief to all. Equitable rebuilding not only addresses systemic and
institutional racism of past policy decisions but also focuses on inclusive
economic transformation that can strengthen the U.S. economy and
resilience in the long run. When the government invests in meeting peoples’
basic needs and economic security through a robust safety net and jobs that
help build financial security, children, families, and other vulnerable
populations see improved outcomes in both the short and long term. The
good news is that policymakers already have a range of tools that can
prevent further increases in poverty and put all people on a pathway to
economic mobility and resilience.
Tell Congress To Take Action on Poverty
Congress must support sustained, bold public investments in programs that
support people living in—and on the edge of—poverty.
TAKE ACTION
This column outlines 12 policy solutions that Congress can use to cut poverty
and boost economic security for all in an equitable way.
1. Expand safety net programs to benefit all in need
Safety net programs can help people weather a variety of economic crises
by meeting basic needs and providing stability. Yet the pandemic has
exposed just how woefully inadequate America’s safety net structure is.
For example, before the pandemic, state unemployment insurance (UI) did
not cover monthly expenses anywhere in the country and excluded millions
of others due to their work classification, previous earnings, length of
employment, or immigration status.
The Coronavirus Aid, Relief and Economic Security (CARES) Act provided a
temporary $600 weekly boost to UI, lifting millions out of poverty before
that provision was allowed to expire at the end of July 2020. The American
Rescue Plan continued a $300 weekly supplement to UI that started in
December 2020, providing an income to millions of long-term unemployed
and self-employed workers, independent contractors, gig workers, and
others. Unfortunately, this supplement and the other temporary federal UI
expansions are set to expire nationally on September 6, 2021. To make
matters worse, at least 26 governors have pledged to end some or all of
these programs even sooner, cutting benefits for 4.7 million people and
severely affecting their ability to recover from the pandemic.
Similarly, programs such as the Supplemental Nutrition Assistance Program
(SNAP), intended for those with the lowest incomes, have not done enough
to prevent hunger and food insecurity in America. Even before COVID-19 hit,
the inadequate benefit amounts forced 45 percent of SNAP recipients to
limit the food they ate or skip meals just to make it through the month; and
nearly a third of SNAP recipients had to visit a food pantry to keep
themselves fed. From December 2019 to December 2020, the demand for
charitable food assistance rose by nearly 50 percent. This was especially
prevalent for households of color, households with children, and people
with disabilities. Fortunately, the American Rescue Plan contained significant
expansions in food assistance programs to help mitigate the high levels of
hunger seen throughout the crisis. But more must be done. Lawmakers must
expand eligibility for SNAP, ensuring that currently excluded groups—
including undocumented immigrants and many college students—are able
to receive necessary food assistance. Burdensome work requirements that
only serve to push people away from assistance, rather than encourage
work, should also be eliminated.
Temporary expansions of the safety net are not enough to help the millions
of Americans who are still struggling with the economic and health fallout
from the pandemic. Congress must continue to invest in and modernize
safety net programs, ensuring that benefit levels are expanded and more
accessible than they were before the crisis. It should also consider
implementing automatic triggers that would expand benefits during future
economic shocks, such as recessions, without the need for legislative
intervention. Not only would this prevent people from falling into poverty
while Congress argues over how much relief is necessary, having a system
that automatically triggers expanded benefits would also help soften the
blow of future recessions and stimulate the economy by giving money to
people who desperately need it in a timely fashion.
For more information on UI and SNAP, see “You Can’t Afford to Live
Anywhere in the United States Solely on Unemployment Insurance” and
“The Basic Facts About Children in Poverty.”
2. Create good-paying jobs that meet family needs
The United States is the only industrialized nation in the world to not
guarantee workers access to any paid leave. As of March 2020, an estimated
25 percent of private sector workers—and 69 percent of workers earning
less than $11 per hour—did not have access to a single paid sick day.
Additionally, in 2020, 4 in 5 private sector workers lacked access to any paid
family leave for longer-term family caregiving needs; and the disparity was
worse among the lowest-wage workers, where 95 percent did not have
access to paid time off.
This puts workers in the impossible position of having to forgo needed
income, or even their job, to recover from an illness or care for a sick family
member. Every year, workers and their families lose an estimated $22.5
billion in wages due to a lack of access to paid family and medical leave.
While Congress addressed this need during the pandemic by providing
temporary emergency paid sick leave and emergency paid child care leave
through the Families First Coronavirus Response Act, loopholes and
exemptions excluded millions of workers. The program also became
voluntary in 2021, meaning employers can now refuse to offer paid leave
again.
Congress must prioritize passing paid sick leave and permanent paid family
and medical leave, particularly to support the lowest-income earners.
Several proposals—including the American Families Plan, the Family and
Medical Insurance Leave (FAMILY) Act, and the Healthy Families Act—have
been introduced to address this issue. They include comprehensive paid
family and medical leave, allowing workers to take time off work to recover
from a health condition, care for a child or loved one, or grieve the loss of a
loved one.
For more information on paid leave, see “Quick Facts on Paid Family and
Medical Leave” and “The Rising Cost of Inaction on Work-Family Policies.”
5. Increase worker power to rebalance the labor market
Two of the nation’s most effective anti-poverty tools, the child tax credit
(CTC) and earned income tax credit (EITC), lifted 7.5 million Americans out of
poverty in 2019.
Both programs provide a reliable source of income to parents, helping them
meet immediate needs and plan for the future while making them more
financially stable on a day-to-day basis. These programs also pay long-term
dividends by improving infant and maternal health outcomes while boosting
the educational, health, and income potential of future generations.
The American Rescue Plan Act was able to close some glaring holes within
the tax credits by:
Making the CTC fully refundable so low-income parents can get the full
credit if their tax liability is less than their credit amount by paying
them the difference
Increasing the amount of the CTC to $3,600 for children under 6 and
$3,000 for children ages 6 to 17
Distributing the CTC monthly instead of all at once at tax time
Nearly tripling the maximum EITC for workers who are not raising
children in their home
Revising the eligibility requirements to make EITC accessible to
workers ages 19 to 24, as well as workers who are 65 and older
Extending the credits or providing supplemental funding to Puerto
Rico and other U.S. territories
However, these changes are temporary and will expire in 2022. Considering
that the changes to the CTC alone were estimated to lift nearly 4 million
children out of poverty, the best way to ensure that these credits continue
to support low-wage workers and families with children is to make them
permanent. Policymakers must also make the CTC as accessible as possible
by removing barriers for immigrant families.
For more information on the CTC and EITC, see “Now Is the Time To
Permanently Expand the Child Tax Credit and Earned Income Tax Credit.”
7. Support pay equity to create a fair labor market
Equal pay ensures that workers are paid fairly. In 2019, women working full
time, year-round earned just 82 cents for every $1 earned by their male
counterparts. This pay gap is even worse for women of color: For every
dollar earned by white, non-Hispanic men in 2019, Black women earned 63
cents, Native women earned 60 cents, and Latinas earned 55 cents. And
while Asian American and Pacific Islander (AAPI) women, on average, earned
85 percent of what white, non-Hispanic men earned, there were much
wider gaps for many AAPI sub-populations. Disabled women also struggle
with a pay gap, receiving 80 cents for every dollar earned by men with
disabilities. If women in this country received equal pay to men, poverty for
working women would be reduced by half and $512.6 billion would be
added to the economy through additional wages.
What’s more, equal pay is essential to helping workers attain the stability
and savings necessary to weather current and future crises. The pandemic
has stalled women’s economic progress, as a lack of access to child care and
paid leave, coupled with mass job losses, has forced many women out of the
workforce entirely, exacerbating the gender wage gap. For example,
mothers of young children have lost jobs at three times the rate of fathers
during the crisis. This is on top of ever-present compounding factors such as
bias and discrimination that may deflate women’s earnings.
Passing the Paycheck Fairness Act would enhance existing equal pay
protections, further combat discriminatory practices, and better hold
employers accountable for pay discrimination. Pandemic or not, securing
equal pay has always been essential to the economic security of women and
families.
For more information on pay equity, see “Quick Facts About the Gender
Wage Gap” and “When Women Lose All the Jobs: Essential Actions for a
Gender-Equitable Recovery.”
8. Invest in affordable, high-quality child care and early childhood education
More than half of all Americans live in a child care desert, where child care
shortages lead to waiting lists, job disruptions, and fewer mothers in the
paid labor force. Child care in the United States is prohibitively expensive,
with infant and toddler care often costing between $800 and $1,230 a
month. While there are subsidies for low-income families, in most states,
they reach fewer than 1 in 10 eligible children under the age of 6. As a
result, low-income families can spend more than one-third of their income
on child care just to be able to work.
Not surprisingly, the pandemic has eviscerated child care across the United
States. About 700,000 parents left the workforce in 2020 to care for young
children who were not able to go to school or have access to child care.
Since then, only half of the nearly 400,000 child care jobs lost at the start of
the pandemic have returned, leading to a 144 percent increase in the
number of parents who have missed work to care for children compared
with 2019.
The $39 billion for subsidized child care that was already included in the
American Rescue Plan will help providers recover from a year of
unprecedented revenue losses, but additional funding is needed to expand
these services to everyone who needs them. The American Families Plan
would make significant investments in universal preschool for 3- and 4-year-
olds, which would help more struggling families obtain the child care they
need to work, better meeting their families’ basic needs and building future
economic stability. The plan would also cap child care costs for low- and
moderate-income families at 7 percent of their income, making it far more
affordable and manageable as they juggle other needs.
Another bill currently introduced in Congress, the Child Care for Working
Families Act (CCWFA), would ensure free or affordable child care for 76
percent of working families with children under the age of 6, expanding
quality care for millions of families. As Congress deliberates future funding,
it must invest in affordable, high-quality child care and early education,
providing parents with the means to foster family security and healthy child
development.
For more information on child care and early childhood education, see
“Understanding the True Cost of Child Care for Infants and Toddlers,”
“Working Families Are Spending Big Money on Child Care,” and “Saving Child
Care Means Preserving Jobs and Supporting Working Families and Small
Businesses.”
9. Expand access to health care
Since it was signed into law in 2010, the Affordable Care Act (ACA) has
expanded access to high-quality, affordable health coverage for millions of
Americans, especially those with preexisting conditions. Today, 31 million
Americans are enrolled in coverage through the ACA marketplaces or the
law’s expansion of Medicaid. However, 12 states continue to refuse to
expand their Medicaid programs to cover adults making up to 138 percent
of the federal poverty guideline—placing a heavy burden on families already
on the brink. About 2.2 million uninsured people are without an affordable
option for health insurance because they live in non-expansion states and
have incomes too low to qualify for marketplace premium tax credits.
Expanding Medicaid would mean more than just access to health care; it
would give people financial protection from unexpected medical costs and
free up limited household income for other basic needs such as paying rent
and putting food on the table. Increases in Medicaid enrollment are
associated with reduced rates of medical debt and other unpaid bills among
low-income individuals. Studies also link Medicaid coverage to improved
access to health care services, greater financial security, lower mortality
rates, reduced racial health care disparities, and lower rates of eviction.
While the American Rescue Plan included increased federal Medicaid
funding for two years as an incentive to encourage more states to expand
their programs, it is unlikely that the remaining nonexpansion states will
take up this option. Congress has an opportunity to enact federal policies
that ensure people in the Medicaid coverage gap can gain access to
affordable, comprehensive health insurance.
For more information on Medicaid, see “The Pandemic and Economic Crisis
Are Wake-Up Call for State Medicaid Expansion,” “Expanding Medicaid in All
States Would Save 14,000 Lives Per Year,” and “Building On the ACA To
Reduce Health Insurance Disruptions.”
10. Reform the criminal justice system and enact policies that support
successful reentry
Robust changes are needed to restructure and reform a U.S. criminal justice
system that incarcerates more of its citizens than any other country in the
world, holding about 2.3 million people in prisons, jails, and other
correctional facilities. If not for the rapid increase in mass incarceration since
1980, poverty rates would have dropped by 20 percent by 2009. The impact
on communities of color is particularly staggering: Black and Latino men are,
respectively, 6 times and 2.5 times more likely to be incarcerated than white
men; and Black and Latina women are, respectively, 1.7 times and 1.3 times
more likely to be incarcerated than white women. Likewise, Native
Americans are incarcerated at more than twice the rate of white Americans.
Mass incarceration is a key cause and consequence of poverty. When a
person is incarcerated, their family must find a way to make ends meet
without a necessary source of income. Additionally, even a minor criminal
record or an arrest without a conviction can prevent an individual from
getting a job, housing, or certain benefits, contributing to cycles of
multigenerational poverty. Currently, there are more than 44,000 legal
sanctions that create barriers to housing for people with criminal records.
Moreover, various restrictions prohibit justice-involved individuals’ access to
SNAP and Temporary Assistance for Needy Families (TANF) benefits if they
have prior felony drug convictions, unless additional requirements are
fulfilled. This can include being required to wait for months after completion
of a sentence to be considered eligible or to participate in mandatory
periodic drug testing, both of which are unnecessary obstacles that hinder
successful reentry.
Sentencing reform is essential to addressing mass incarceration.
Policymakers should also implement clean slate laws, which help expand
access to automated criminal record clearing, and explore alternatives to
incarceration, such as diversion programs for individuals with mental health
and substance abuse challenges. Additionally, it is critical to review the role
of policing in public safety, health, and well-being. There has been a recent
move across the nation to divert away from police certain health, public
safety, and community care emergency responses and funds—such as
responding to people experiencing a mental health crisis—that better fit
agencies and social workers. Barriers to employment, housing, education,
and public assistance must also be removed. A decades-old criminal record
should not consign an individual to a life of poverty.
For more information on criminal justice, see “A Criminal Record Shouldn’t
Be a Life Sentence to Poverty” and “Criminal Records Create Cycles of
Multigenerational Poverty.”
11. Invest in affordable, accessible housing