California Can Provide its Own Child Tax Credit with Assembly Member Santiago's AB 2589

(Sacramento, CA) –When Senator Manchin blocked the federal Child Tax Credit’s extension, nearly 1.7 million children fell back into or deeper into poverty. California however has a chance to create its own child tax credit through its record budget surplus. AB 2589 will provide a one-time $2,000 California CTC payment per child to families that earn $30,000 or less per year. The bill will also increase the minimum California Earned Income Tax Credit (CalEITC) from $1 to $255, giving financial support to California’s low-income tax filers without dependents. Combined, AB 2589 will provide families a significant boost out of poverty.

“How we treat our lowest income families is a statement of our humanity,” said Assembly Member Miguel Santiago, lead author of AB 2589. “The federal Child Tax Credit expired so we must invest our record surplus in low-income children and their families to prevent them from falling back into poverty. AB 2589 will provide low-income families critical support as our communities recover from the pandemic.”

“AB 2589’s $2000 per child tax credit hits the sweet spot; it is the most targeted and effective way to meet several goals – reduce poverty, help families dealing with inflation, boost local economies, and improve lifelong results for children,” said Pete Manzo, President & CEO of United Ways of California. “This is a rare opportunity to make a big down payment on future prosperity, and the Governor and Legislators should include it in any economic relief.”

“Governor Newsom and the California Legislature has led the Nation in demonstrating that when government puts our most vulnerable children and families first, we not only impact their daily lives, but we are a better state,” said Shimica Gaskins, President & CEO at Grace. “Now is not the time to lose focus, we have reduced child and family poverty by utilizing the tax infrastructure and we can easily do the same today with California’s massive surplus. AB 2589 will put California’s wealth to work and money into the hands of low-income families with children who are bearing the brunt of our high cost of living.”

"With rising prices at the pump and at grocery stores, low-income families desperately need our support,” said Amy Everitt, President of Golden State Opportunity. "AB 2589's $2000 per child is a proven tool to end child poverty. The federal government has failed America’s poorest children—California will not.”

AB 2589 provides a one-time child tax credit payment to low-income families who qualify for the CalEITC or California’s YCTC. The bill also increases the minimum CalEITC award from $1 to $255 to help support low-income tax filers without dependents. This means that families could receive anywhere from $8,000 to $16,000 in Child Tax Credits, creating a pathway out of poverty for low-income families and residents.

Assembly Member Miguel Santiago is the Chair of the Assembly Committee on Governmental Organization and Chair of the Assembly Select Committee on Los Angeles County Homelessness. He also sits on the Assembly Committees on Public Safety, Health, Higher Education and Utilities and Energy. He represents the 53rd District composed of the cities of Los Angeles, Huntington Park, and Vernon.