Assembly Member Santiago Celebrates Senate Budget Blueprint for Prioritizing Anti-Poverty Tax Credits

(Sacramento, CA) – Today, the California State Senate released details on their budget priorities, which includes funding to implement the anti-poverty programs outlined in Assembly Member Santiago’s bills AB 2589 (Anti-Poverty Child Tax Credit) and AB 1515 (Free Tax Prep and Community Engagement Act). The Senate’s plan proposes $400 million to raise the California Earned Income Tax Credit (CalEITC) Minimum award from $1 to $255, increase CalEITC awareness for low-income workers, and expand tax programs for low-income families.

“How we treat our lowest income families is a statement of our humanity, and I want to thank Senate leadership for supporting them in the budget priorities,” said Assembly Member Miguel Santiago, lead author of AB 2589 and AB 1515. “1.7 million children will fall back into poverty if we do not use our historic budget surplus to help these families. The COVID-19 pandemic hit many low-income families and residents so we must provide financial assistance to them as soon as we can as we recover.” 

Assembly Member Santiago’s Anti-Poverty Child Tax Credit (AB 2589) would provide $400 million ongoing to raise the CalEITC minimum award from $1 to $255. The bill would also create a Child Tax Credit (CTC) using California’s budget surplus, providing a one-time $2,000 California CTC payment per child to families that earn $30,000 or less per year. This means that nearly 1.2 million 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 Santiago’s AB 1515 would establish the California Earned Income Tax Credit (CalEITC) Free Tax Prep & Community Engagement Grant Program to support community-based organizations to engage in outreach, education, and free tax preparation assistance services for families. AB 2589 will be heard in the Assembly Appropriations Committee in May and AB 1515 will be heard in Senate Governance and Finance over the summer.

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.