How the Expanded Child Tax Credit Supports Families Raising Children with Disabilities

While prior research shows that the expanded credit reduced child poverty nationwide, little was known about how families raising children with disabilities specifically used these funds or how the credit shaped their financial stability.

In an article published in the Journal of Disability Policy Studies, researchers at the Center for Innovation in Social Work and Health (CISWH) at BU School of Social Work (BUSSW), in collaboration with colleagues from Washington University in St. Louis and Appalachian State University, share the results of a nationally representative survey of more than 1,700 families that examines how households with children with disabilities used the expanded CTC.

Survey Results

The impact of raising a child with a disability or specialized health need on a family income has been shown to often be bi-directional; higher household and health-related expenses, coupled with reduced parental employment income, result in significant financial hardship for many families.

This study provides evidence of another dimension related to family financial hardship. It found that families raising children with disabilities were more likely to apply CTC payments to essential household needs rather than to supplemental or enrichment opportunities like tutoring. Overall, the study also found that 27% of families raising children with disabilities used the CTC for health-related expenses. That number increased to 41% among families experiencing three or more hardships, which include difficulty paying full rent or mortgage, utility shutoffs, access to doctors and health services, and other financial challenges. 79% used the credit for their usual expenses and 65% used it to purchase more food, with reliance especially high among those experiencing the greatest hardship.

Implications for Policy

The authors emphasize that these findings have important lessons for policymakers considering the future of income support programs like the CTC:

• One of the strengths of the expanded CTC was its flexibility and near-universal eligibility, allowing families to use funds for their children’s and households’ unique needs.
• Families raising children with disabilities used the credit differently than other families and reported more substantial positive impacts on their financial lives.
• Flexible cash benefit programs can be especially valuable for households where specialized care needs vary widely, helping families both make ends meet and support their children’s long-term well-being.

This research shows that income supports like the expanded Child Tax Credit can ease financial strain for families raising children with disabilities by allowing them to meet their most urgent needs. Beyond short-term relief, such programs have the potential to promote equity and stability for households facing the greatest caregiving challenges. As debates continue about the future of the Child Tax Credit, centering the needs of these families will be essential to ensuring that all children can thrive.

Read the full article here.