Today, Children’s HealthWatch celebrates the passage of a new, nation-leading Child Tax Credit (CTC) in Minnesota that is estimated to cut child poverty in the state by one-third. 

“This historic Child Tax Credit builds on the success of the 2021 federal expansion, which our research shows significantly improved parents’ physical and mental health and helped families afford basic needs that are essential for the health and well-being of their children” said Dr. Diana Cutts, Co-Lead Principal Investigator of Children’s HealthWatch and Chair of Pediatrics at Hennepin Healthcare. “We applaud Governor Walz and the Minnesota Legislature for its recognition of the role family tax credits play in advancing equity through boosting family income to afford the things they need, in turn supporting local economies.”

The income-targeted credit, passed into Minnesota law in the wake of Congressional failure to make the federal Child Tax Credit expansion permanent, will provide $1,750 per child to families making under $35,000 and phaseout thereafter. Children of all ages in families of all sizes will be eligible for the credit, as well as immigrants and mixed-status households who are currently excluded from the federal Child Tax Credit. “In the wake of Congressional failure to make the federal Child Tax Credit expansion permanent, Minnesota has stepped up for its families to offer the most generous state credit to-date” said Dr. Cutts. “This structural investment will have a profound impact on the prosperity of our state and the ability for every child to thrive.” 

Minnesota joins 11 states who have established a permanent Child Tax Credit.