City Cast DC How This Tax Change Could Reduce Child Poverty in DC
Nov 10, 2025
Jenny Gathright, a reporter from The Washington Post specializing in D.C. politics, discusses a proposed child tax credit that could significantly decrease child poverty in Washington, D.C. She explains how the new $1,000 per child credit is designed to help low-income families, despite some controversial decoupling from federal tax benefits. Gathright highlights arguments for and against the measure, the urgent need for support among families, and the challenges of rapid legislative action without public hearings.
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Local Child Tax Credit Explained
- D.C. passed legislation to create a local child tax credit of up to $1,000 per child starting in the 2026 tax year.
- The council funded it by decoupling D.C. tax law from 13 federal provisions, freeing about $600 million over four years.
Decoupling Freed Up Funding
- The council decoupled D.C. from 13 provisions in the federal "one big beautiful bill," including corporate breaks and tip exemptions.
- That decoupling is projected to free roughly $600 million for local priorities over four years.
Evidence From 2021 Informed Policy
- Research shows broad child tax credits in 2021 greatly reduced child poverty nationwide.
- That evidence inspired D.C. leaders to adopt a local credit to replicate similar effects.