Patterns of Advance Child Tax Credit Receipt and Spending among Children with Retired or Disabled Household Members

The American Rescue Plan Act of 2021 expanded and paid monthly a fully refundable child tax credit (CTC) to eligible US children under 18. About 12 percent of children live in a household with an adult or child who receives benefits from one or more Social Security programs. In this study, we use data from the Census Household Pulse Survey to explore CTC receipt among these households. We present evidence that the Social Security Administration beneficiary population with children were significantly less likely to receive monthly CTC payments than other CTC-eligible households despite evidence that they have greater need. Further, these households were more likely to spend the CTC on essential goods or to pay down debt, while also being less likely to save or invest CTC payments.