Child poverty and welfare reform: Progress or paralysis? 2025

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As noted, children living in or near poverty tend to have poorer health, lower academic attainment, and a greater chance of being poor in adulthood, relative to their higher-income peers.
Poverty trends for all Californians show a decrease in poverty from 2019 to 2021 and an increase from 2021 to 2022 as pandemic-era policies ended. Focusing specifically on young children, the chart shows that poverty among young children increased at a higher rate, as compared with all Californians.
The Preventing Child Welfare Entry Caused by Poverty Act (H.R. 8813) would allow child welfare agencies to deploy resources under the existing Title IV-B Promoting Safe and Stable Families program to address the acute needs of families living in poverty that might otherwise lead to investigations for neglect.
Poverty produces material hardships for families. Such hardships often result in families experiencing toxic stress, which can impede childrens cognitive development and parents capacity to meet the needs of their children. Incapacity to provide is not the same as an unwillingness to provide.
Studies have shown that in welfare states, poverty decreases after countries adopt welfare programs. Empirical evidence suggests that taxes and transfers considerably reduce poverty in most countries whose welfare states commonly constitute at least a fifth of GDP.
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Other studies found that welfare reform led to declines in womens substance abuse [5,6] and crime [7], and increases in womens civic participation in the form of voting [8]. Overall, findings support the assumption underlying welfare reform that strong work incentives would encourage responsible behavior.
If poverty is mistaken for neglect, it can contribute to the high rates of child neglect cases and result in child welfare and court involvement including the removal of children, the termination of parental rights, and reunification requirements that discriminate against parents experiencing poverty.
From 2022 to 2023, the SPM child poverty rate rose from 12.4% to 13.7%, remaining significantly higher than the 2021 historic low of 5.2%. Approximately 6.2 million more children were living below the poverty line in 2023 than in 2021.

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