Millions of children were plunged back into poverty in 2022 because Congress failed to extend an expansion of the Child Tax Credit, but as of June 30, New Jersey’s US Senators reported having more than $20 million in the bank for their next election campaigns.
The U.S. Census Bureau announced that real median household income decreased by 2.3% in 2022, from $76,330 in 2021 to $74,580.
Child poverty more than doubled in 2022 due to the expiration of the expanded Child Tax Credit at the end of 2021. The expanded Child Tax Credit provided monthly payments to families with children, and it was credited with lifting millions of children out of poverty.
US Senator Cory Booker’s June 30 Federal Election Commission (FEC) report shows that he has $10,195,899.07 in cash sitting in his campaign account. US Senator Robert Menendez had $7,837,833.49 in his campaign account plus another $611,938.99 in a separate slush fund known as the New Millennium PAC.
The expiration of the expanded Child Tax Credit was a major factor in the increase in child poverty in 2022. However, it is important to note that other factors, such as inflation and the ongoing COVID-19 pandemic, also likely contributed to the increase in child poverty.
The official poverty rate was 11.5% in 2022, not statistically different from the 2021 rate of 11.6% however, the number of people living in poverty increased by 1.3 million, from 37.9 million in 2021 to 39.2 million in 2022.
The uninsured rate also remained unchanged from 2021, at 8.3%, as the number of uninsured people decreased by 1.3 million, from 27.2 million in 2021 to 25.9 million in 2022.
The decline in real median household income was driven by a number of factors, including inflation and the ongoing COVID-19 pandemic. Inflation rose 7.8% in 2022, the largest annual increase in the cost-of-living adjustment since 1981.
This means that the purchasing power of household incomes decreased in 2022, even if nominal incomes remained the same or increased.
The poverty rate remained relatively unchanged in 2022, but the number of people living in poverty increased. This is likely due to the increase in the cost of living, which has made it more difficult for low-income families to make ends meet.
The uninsured rate also remained relatively unchanged in 2022, but the number of uninsured people decreased. This is likely due to the expansion of health insurance coverage under the Affordable Care Act and other government programs.
However, the U.S. Census Bureau also reported that child poverty more than doubled in 2022, from 5.2% to 12.4%.
This is a direct result of the expiration of the expanded Child Tax Credit at the end of 2021.
The expanded Child Tax Credit provided monthly payments to families with children, and it was credited with lifting millions of children out of poverty.
The expansion of the Child Tax Credit was a key part of President Joe Biden’s Build Back Better Act, but it was ultimately rejected by Congress due to the opposition of Democrat Sen. Joe Manchin (D-WV) and Republicans.
Experts say that the decline in real median household income and the increase in child poverty are concerning trends that could lead to an increase in inequality in the coming years. They also say that the government needs to do more to help low-income families afford basic necessities and to provide support for children.