Ohio Families Left Waiting As Child Tax Credit Stalls
Introduction
Governor Mike DeWine’s budget proposal included a refundable Child Tax Credit (CTC) — up to $1,000 per child under age seven, designed to provide direct financial relief to families with young children, particularly in the face of inflation and rising child poverty. However, the Ohio House stripped the provision from its version of the state budget, citing cost concerns.
Advocates, including Groundwork Ohio and the Children’s Defense Fund of Ohio, argue that the credit would be a landmark investment the largest in DeWine’s tenure, and a critical support for the nearly 470,000 Ohio children living in poverty (almost 1 in 5). Public polling shows strong bipartisan support, with nearly 5 in 6 Ohio voters favoring the CTC, including over 80% of Republicans and nearly 95% of Democrats.
“This is a bipartisan policy,” said Guillermo Bervejillo, Research Manager at the Children’s Defense Fund of Ohio. “It would have directly put money into the hands of those most in need and who are taking care of children.”
A National Lens: The Federal CTC at a Crossroads
Ohio’s debate reflects a broader national conversation about the role and design of the federal Child Tax Credit, especially as the expanded CTC under the 2021 American Rescue Plan, which dramatically cut child poverty is set to be reduced after 2025 under the Tax Cuts and Jobs Act (TCJA) expiration.
At the federal level, lawmakers are weighing how to balance deficit reduction, tax reform, and anti-poverty measures. While the TCJA temporarily increased the CTC from $1,000 to $2,000 per child, it did not make the full amount refundable, meaning millions of low-income families remained excluded from its full benefit.
Refundability remains one of the most contentious issues in Washington. Proponents argue it ensures that the most economically vulnerable families are not left behind, while critics, like Senator Mike Crapo (R-ID) have expressed their concern over giving benefits to those who “pay no federal income tax.” However, as experts like Megan Curran from Columbia University note, tying the CTC to earnings excludes many children who could benefit most, especially during their formative years.
Policy Innovation or Political Compromise?
Some recent federal and state proposals attempt to target resources more narrowly, introducing “baby bonuses” or higher credit amounts for children under age six. These proposals reflect a growing recognition that early childhood is a uniquely critical developmental period, and that families face the highest costs during those early years.
In Ohio, the American Family Act and the Family First Act propose increases for young children and even pregnant mothers. Advocates say these refined approaches can help keep costs down while still making a tangible difference.
Childcare and the Bigger Picture
The CTC is not the only family policy under threat in Ohio’s state budget. Over 50 organizations, including the United Way of Central Ohio, Lutheran Social Services, and The Boys & Girls Clubs of Central Ohio, have signed letters urging lawmakers to maintain proposed expansions to publicly funded child care and the Child Care Choice Voucher Program.
These programs, when combined with a refundable CTC, could create a more robust safety net, especially for working parents struggling to balance rising living costs with child care expenses.
“We cannot afford to let the needs of Ohio’s children be reduced to line items subject to political compromise,” said one signatory. “We must invest in families today to avoid crisis tomorrow.”
What Comes Next?
The Ohio Senate has until July 1 to finalize its version of the budget. Advocates are mobilizing: a Statehouse rally is scheduled for June 17, and organizations are encouraging families to call legislators, write letters, and share their stories.
For families, this is more than a policy debate, it’s about putting food on the table, keeping children in care, and having a shot at stability. For lawmakers, it’s an opportunity to demonstrate real leadership by putting children and families at the center of economic planning.
Conclusion
At a time when political divisions often seem insurmountable, the Child Tax Credit offers a rare chance for unity. It’s a policy that is pro-family, pro-work, and anti-poverty and if restored in the final budget, it could make history in Ohio as a bold move toward equity and economic resilience.
