Minnesota Reformer: The MN Child Tax Credit is working; give it to more families

Like many hardworking families in our state, the Minnesota Legislature is engaging in the exercise of creating a budget that balances competing needs and interests. At a time when pocketbooks are tight and inflation is rising, legislators should be giving money back to those who need it most — our state’s families. 

Expanding eligibility for the already successful state Child Tax Credit should be a top priority for our elected officials. 

The cost of raising kids is expensive, especially when inflation is high. Over the past year, inflation has impacted our grocery stores, with the food index rising by 3.2%. Fruit and vegetable prices rose by nearly 7%, compared to other foods like sugars and oils only rising by 3%. For families trying to keep their children’s bellies full and healthy, a 7% increase certainly takes a bite out of the budget.

In addition to food inflation, we are seeing elevated prices for utilities, housing and child care. 

Although the economic forecast looks cloudy long-term, the state still has a small surplus of $456 million for fiscal year 2026-2027. A portion of that money should be put right into the pockets of those doing the most important work of raising the next generation, by expanding the Child Tax Credit. It will pay dividends. Strong families contribute to a strong state.

Expanding the CTC has broad legislative and organizational support

The Child Tax Credit is a proven success. It has reached over 440,000 children in our state, with 84% of eligible households taking advantage of the program that was created during the 2023 Minnesota legislative session. Given our state’s population of just over 1.3 million children, that means the Child Tax Credit has benefited over one-third of our state’s children.

A single parent raising two kids and making $50,000 will receive about $1,400 through the Child Tax Credit.  For a married couple with four children making $65,000, they will receive about $3,750 from the Child Tax Credit. This is meaningful relief to working class families.

But many at the Capitol agree that we can and should do more. Members of both parties have put forward a variety of proposals to offer direct relief by expanding eligibility for the Child Tax Credit.

One vehicle that has widespread support is HF2339/SF2508. This bill proposes a modest 20% increase in the program’s ceiling, which would likely reach an additional 200,000 children — meaning about half of our state’s children would qualify for the Child Tax Credit. The House version has a growing list of 22 authors who fall on all sides of the political spectrum. The Senate version is at capacity with five authors who also bring a diverse set of viewpoints.

Not only is there broad support amongst legislators, but more than two dozen organizations back a variety of Child Tax Credit expansion bills, with HF 2339/SF2508 at the center of a letter being circulated to legislators. The signatories include organizations like the Minnesota Budget Project, the Minnesota Family Council, the Minnesota Nurses Association, Children’s Minnesota, the Joint Religious Legislative Coalition, and more. 

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Read the full article at Minnesota Reformer.