New Data Show Children are Experiencing Increases in Poverty and Uninsurance

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New poverty data show the supplemental poverty rate for children remains more than double what it was in 2021. The supplemental poverty measure (SPM) includes resources from government programs and tax credits in addition to pre-tax cash resources used by the official poverty measure. The Census Bureau notes that while the SPM increased from 2022 to 2023 – after doubling from 2021 to 2022 – that is due to technical changes in the poverty thresholds, and without those changes the SPM would not have significantly increased from 2022. However, poverty remains significantly higher than the first two years of the pandemic. Pandemic-era legislation that expanded the Child Tax Credit (CTC) in 2021 resulted in a record low SPM rate for children and kept twice as many individuals out of poverty in 2021 compared with 2022 when the relief expired. The cost of household expenses has also risen, contributing to increases in food insecurity and financial hardships.

At the same time, the uninsured rate for children increased by nearly half a percentage point from 5.4% in 2022 to 5.8% in 2023, according to new data. During the Medicaid continuous enrollment period, Medicaid enrollment increased to a record high, and the uninsured rate declined. However, since the end of continuous enrollment on March 31, 2023, children’s enrollment has declined by 10%. Because Medicaid eligibility levels are higher for children than adults, there are particular concerns that children may be losing coverage and becoming uninsured despite remaining eligible for Medicaid.

The economy is the most important issue this election, and changes in poverty, family resources, and health insurance coverage all impact a family’s financial security. To support families with children, Vice President Harris has proposed making the pandemic-era CTC expansion permanent and expanding the CTC for newborns. JD Vance, former President Trump’s running mate, has proposed to expand the CTC and make it available to all families, but Trump has not officially endorsed the proposal.