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Charlotte, North Carolina reels as 81 people arrested in immigration raids; Court rules label exemption for ultra-processed food unlawful; E-cigarette dangers to pregnancies seen in NC study; Judge scolds Justice Department for 'profound investigative missteps' in Comey case; Shutdown fallout pushes more Ohio families to food banks.

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Donald Trump urges Republicans to vote for Epstein documents to be released. Finger-pointing over the government shutdown continues and federal cuts impact the youth mental health crisis.

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A voting shift by Virginia's rural Republicans helped Democrats win the November governor's race; Louisiana is adopting new projects to help rural residents adapt to climate change and as Thanksgiving approaches, Indiana is responding to more bird flu.

With Federal Child Tax Credit in Limbo, Calls Grow for MN Plan

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Thursday, April 21, 2022   

It remains unclear whether the federal government will make permanent last year's expansion of the Child Tax Credit. In the meantime, supporters in Minnesota argued the state could step in and approve its own version to prevent families from falling off the financial cliff.

A new report from Washington University in St. Louis said the temporary federal expansion saw families experience improved nutrition and relying less on their credit cards to survive.

Ryan Hamilton, government relations associate for the Minnesota Catholic Conference, said it was a great case study in trying to reduce poverty. But he stressed it was short-lived for many households who could use extra support.

"A Minnesota child tax credit would be a tremendous benefit to families who are at or near the poverty line," Hamilton contended. "And those families who are facing the rising cost of food and necessities due to inflation."

Unlike the federal credit, which already existed and was expanded, Minnesota would have to adopt its own framework. There is no specific proposal at the moment. Supporters have asked policymakers to embrace a fully refundable tax credit to put more money in the hands of eligible households. Amid a large budget surplus, both major parties expressed a desire for tax relief, but have different ideas in how to do it.

Hamilton pointed out it could serve as a recruiting tool for families to move to Minnesota, or compel current residents to start a family of their own. He noted there is real concern amid the rising costs for so many basic needs, the decision to raise children is more complex than it used to be.

"This demographic cliff, it'll put a strain on our state budgets," Hamilton emphasized. "Because we'll have fewer workers, fewer taxpayers, and more people receiving government service."

Data from the Centers for Disease Control and Prevention show Minnesota has seen a declining birthrate for many years, mirroring national trends.

Hamilton added a new credit could help the state become a national model in reversing the situation.

Groups such as the Children's Defense Fund worry families briefly aided by the federal expansion are back in poverty after it expired. Researchers at Columbia University reported it happened to nearly four million American children when temporary advance payments from the credit stopped.

Disclosure: The Children's Defense Fund-Minnesota Chapter contributes to our fund for reporting on Budget Policy & Priorities, and Children's Issues. If you would like to help support news in the public interest, click here.


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