Today, Rep. Annie Kuster (NH-02) joined her colleagues in sending a letter to Speaker Pelosi and Minority Leader McCarthy urging leadership to advance policies that will support low-income families in the wake of the coronavirus outbreak. Specifically, this letter requests the inclusion of a Fully Refundable Child Tax Credit (CTC) and Lookback Provision for the Earned Income Tax Credit (EITC) in the next supplemental package as part of Congress’ continued response to COVID-19. These tax provisions would help provide low-income families with critical assistance in the face of financial hardship as a result of the Coronavirus pandemic.

“As Congress continues to address the Coronavirus outbreak, we cannot fail our families in need,” said Kuster. “Nationwide, schools and childcare facilities are closing - leaving many Americans worried for their financial futures and security. As this public health crisis continues, the needs of America’s children and families must be prioritized. I urge leadership to do its part in ensuring that all children and families have the assistance they need to deal with the burdensome costs that come with this public health emergency.”

The full text of the letter is below:

Dear Speaker Pelosi and Minority Leader McCarthy,

As we enter phase 3 of our legislative response to the Coronavirus Crisis, we need to redouble our efforts to prioritize the needs of the most vulnerable. Our expansions of SNAP (food stamps) and Unemployment Insurance in the phase 2 deal were essential, as they can reach families expeditiously and efficiently. 

Yet, over half of low-income children are in families that get neither. Moreover, SNAP cannot be used to pay rent or bills, or purchase essential supplies including toilet paper and diapers. As schools and childcare facilities close, the quickly evolving needs of children and families need to be at the top of our list. 

In order to meet those needs, the next supplemental package must include creating a Fully Refundable Child Tax Credit (CTC) and Lookback Provision for the Earned Income Tax Credit (EITC) and CTC.

• Make the Child Tax Credit fully refundable and make it retroactive to last year:  Extend eligibility for the Child Tax Credit to the one-third of families who earn too little to get the full Child Tax Credit.  Doing so would ensure all families (except for the wealthiest) would get a full $2,000 per Child Tax Credit, while providing the increase to the one-third of families who need it the most.

• Increase the Child Tax Credit by $1,000 for older kids and $1,600 for young kids under 6: If we want to help all families, we can also increase the Child Tax Credit by an additional $1,000, and for young children under age 6, whose families face additional expenses, by an additional $600.

• Protect families when they file their taxes next year: Create a “lookback provision” for EITC and CTC to allow families to use their previous years’ earnings to calculate their EITC and CTC to prevent families from getting an economic aftershock when they file their taxes next year.  Lookbacks began with Hurricanes Katrina, Rita, and Wilma in 2005 for affected individuals and have become routine with more recent disasters.

• Protect families subject to asset limits for government programs like SSI and Medicaid: Exempt the increases in CTC and EITC for families that could be at risk of getting kicked off lifesaving and life-sustaining programs or having a reduced benefit down the road.

It is critical in this crisis that all children and families have the assistance they need to deal with pressing costs. Thank you for your consideration of this request.

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