On the heels of a promising poverty report, there are renewed calls to make permanent certain pandemic policies that helped struggling families in Minnesota and around the country.

Last week, an annual Census Bureau report showed that child poverty fell sharply last year to a record low of 5.2%.

Arloc Sherman, vice president for data analysis and research with the Center on Budget and Policy Priorities, said that was largely fueled by the temporary expansion of the federal Child Tax Credit.

He noted that other census information revealed monthly payments from the credit helped eligible households meet basic needs.

"The families were saying, 'We're spending this money to buy food, we're spending it to pay the rent, we're buying books for our children's school,'" said Sherman.

But the expanded credit expired, and Sherman predicted that an uptick in poverty this year if Congress doesn't revisit the issue.

In Minnesota, the Children's Defense Fund urges the Legislature to use surplus money to create a separate state Child Tax Credit. Opponents, including GOP lawmakers, say expanding government spending long-term will contribute to more inflation woes, hurting family budgets.

But Sherman argued that global supply-chain issues and other factors are playing a role in the current inflation problem. And he said if future investments are geared more for low-income families, rather than the large pandemic relief bills, they shouldn't register negative economic waves.

Instead, he said it would help the country down the road.

"The good news is that now we've shown we actually know how to reduce that kind of poverty and poverty-related stress," said Sherman.

He said moving forward with this blueprint will result in better outcomes for kids, building on some of the progress that was seen even prior to the pandemic.

In Congress, lawmakers who support reviving the Child Tax Credit are looking for new opportunities to negotiate, including pending changes to certain business tax breaks.

Amid workforce issues within health care, the state of Minnesota is poised to soon roll out a nursing recruiting initiative.

In the meantime, some community-action agencies are helping those experiencing poverty enter the field. The offices connect low-income individuals to a variety of resources, including home heating assistance and housing support. At the Lakes and Prairies Community Action Partnership in Moorhead, job training is on the list, too.

Amy Feland, career connect manager for the partnership, said they work with a local technical college in helping people interested in becoming a certified nursing assistant. Her team serves as the coach, cheering and supporting clients along the way.

"Whether it's supporting [them] through the training, supporting them because they don't have housing or transportation, things like that," Feland explained.

When a client completes training, the office assists with things like resume writing and interview practice.

Meanwhile, the state health department said plans are still coming together for its recruiting effort, which will cover education and career advancement. A 2022 department report found job vacancies have increased in nearly all health professions since the pandemic began.

For her office's part, Feland emphasized follow-through is crucial in guiding clients who sign up for the training. She added they recognize those trying to escape poverty are navigating a variety of forces complicating the process.

"We don't want them to just go through the training and be like, 'OK, I did that.' And then not even getting a job because of A, B or C," Feland noted.

She stressed having success early on can help inspire clients to go back to school in hopes of taking their careers even further. The job training program uses funding from Community Services Block Grants. In Minnesota, the community action agency in Duluth carries out a similar training effort for nursing assistants, even providing participants with free child care.

Legislation introduced in the Commonwealth aims to reduce the racial wealth gap by creating a statewide "Baby Bonds" program.

The investments are made and managed by the government on behalf of newborn children in low-income households with little opportunity to generate wealth. The funds are then made available to the child once they turn 18, and can be used for college, starting a business or even to purchase a home.

Deborah Goldberg, State Treasurer, called it a proactive approach to addressing historic inequities.

"This is good for everybody, because it ultimately creates a stronger economy within our state," Goldberg asserted.

Goldberg noted a state task force advised an initial Baby Bonds investment from the American Rescue Plan. Children one year of age or younger in families receiving certain public benefits or in foster care would be automatically enrolled.

Many communities of color in Massachusetts have historically been excluded from traditional opportunities to build wealth. A 2015 Federal Reserve study found in the greater Boston area alone, the median net worth for white households is nearly $250,000, while for Black households it's just $8.

Joe Diamond, executive director of the Massachusetts Association for Community Action, a coalition of community action agencies, said Baby Bonds provide a foundation for equal opportunity.

"It's really difficult for the people that we serve to be in a position to not only work with what they have at the moment, but then to think about a hopeful future," Diamond observed.

Connecticut and Washington, D.C., have already passed laws creating Baby Bonds, and several other states are considering them. Rep. Ayanna Pressley, D-Mass., recently introduced the American Opportunity Accounts Act to create a national Baby Bonds program, as she puts it, to make "economic opportunity a birthright."

A bill to increase tax credits in the Commonwealth is backed up by research showing the credits lead to better nutrition for working families and better long-term health outcomes for children. Lawmakers want to expand the state Earned Income Tax Credit and streamline other existing dependent tax credits to help put even a few hundred dollars back in the pockets of working people, including immigrants and many essential workers.

Democratic State Senator Jamie Eldridge said while food, energy and housing prices are up significantly, the bill is about more than just rebates.

"It's also about their health care," Eldridge said. "It's about taking care of kids and making sure they have adequate nutrition, and it's something that really has a tremendous impact on the entire Commonwealth. "

Eldridge added the legislation will help decrease food insecurity and ensure a basic standard of living for people to survive in an increasingly expensive Commonwealth.

Expansion of the Child Tax Credit is credited with cutting child poverty in the U.S. by more than 40% during the height of the COVID-19 pandemic. Studies show the tax credits improve the health of mothers, decrease low birth weights in infants, and even lead to improved academic outcomes for children.

Charlotte Bruce, senior research and policy analyst with Children's Health Watch at Boston Medical Center, said the tax credits provide direct cash payments to those in need.

"When you look at the data of how families spend tax credits, particularly if they're done periodically, they're really being used to afford basic needs and other enrichments for their child," she said.

Bruce added the extra income allows people to spend money on healthy meals and necessary medical care.

But tax credits cannot help families if they don't know they exist. MASSCAP, a coalition of Community Action Agencies, operates 40 Volunteer Income Tax Assistance centers to help people receive the benefits to which they are entitled.

Ancel Tejada, Financial Empowerment Program Manager with MASSCAP, called the tax credits "course changing."

"A lot of our families do take that time and opportunity to get that money, and they do start their emergency savings account and they do start to pay back some back debt, Tejada said."

Tejada added the expanded tax credits recently helped one mother take her daughter to the beach for the first time, providing a healthy respite for both mother and child.