Although the American Rescue Plan's most expansive provisions resulted in monthly payments of up $300 per child under 5, and $250 for children under 18, the payments are still relatively small. Each month, the payments will continue through December.A huge dropAbout 11 percent of households that had children reported that they did not have enough food in the last week before the first tranche tax credit payments reached their bank accounts in mid July. The rate fell to just above 8 percent after the money was withdrawn. This is a drop of almost 24 percent, and the lowest rate since the outbreak of the pandemic.Although it is still too early to know the cause of the recent drop in hunger rates researchers say, it seems to be closely linked to child tax credit payments. The drop in hunger rates was greatest for households with children, but adults living alone saw little change. Only 6% of those surveyed reported a lack or sometimes experiencing food problems.Other factors contributing to the decline include an improving economy, and special pandemic aid payments for children in recent months that help to make up for missing meals at school last year.Through a tool called the Household Pulse Survey (launched in April 2020) to aid policymakers in understanding the economic situation during the crisis, the government has almost real-time data about how households fared during the pandemic.According to the survey, hunger and other forms if hardship are lessened after Washington provides stimulus checks, increases unemployment payments, enhanced Supplemental Nutrition Assistance Program benefits, or any other aid.For example, hunger rates reached their peak in December after Washington gridlock stopped any additional pandemic assistance. More than 18% of households with children said that they had not eaten enough in the previous week, and that this was after Washington gridlock. The overall hunger rate dropped 40 percent after Congress passed two aid packages in December and March. These packages included two additional rounds in stimulus checks and a 15 per cent increase in SNAP benefits.More food, more moneyA U.S. Census Bureau survey also consistently shows that households in financial need will spend cash assistance to purchase necessities such as food and utilities.According to the most recent survey, nearly half of households reported that they spent their tax credit payments on food. Only 17 percent of households that have one child under five reported that they spent the tax credit on childcare.Survey results showed that the child tax credit payments made it easier for households cover all their expenses. The percentage of households with children reporting difficulty or very difficult covering their expenses fell from 32 percent down to 29 percent. This is a decrease of nearly 8 percent. The proportion of adults living in households with no children reporting difficulty increased slightly.Inequity persistsThe overall rates of hunger and the recovery rates are still markedly inequal. Black households with children have a higher rate of food insecurity than white households.According to a Northwestern analysis of the latest data, Schanzenbach found that the rate of food insecurity is increasing for Black households with kids, while it has been declining for white households, Hispanic households, and Asian households with kids.
