ALEXANDRIA, VA –Today, First Focus, a bipartisan children’s advocacy organization, urged the President, Congress, and the 2008 Presidential candidates to ensure their economic stimulus packages remember children and families. Specifically, child friendly provisions in any economic stimulus package should include improving the Child Tax Credit, bolstering the Low-Income Home Energy Assistance Program (LIHEAP), and protecting Medicaid and the State Children’s Health Insurance Program (SCHIP).

“As the candidates and others roll out their economic stimulus proposals, it is our hope that they are keeping the needs of children and their families in mind,” said Bruce Lesley, President of First Focus. “We urge the candidates who have yet to release their stimulus packages to remember kids in their plans, as well as those who have already released theirs.”

The Child Tax Credit
Currently, the Child Tax Credit (CTC) is a refundable tax credit that allows families to receive a refund of 15 percent of their 2008 income that exceeds $12,050. Congress has proposed legislation that would lower the minimum floor to $8,500 for 2008. Lowering this floor would extend eligibility for the credit to 2.9 million additional children, while increasing refunds for approximately 10 million additional children.

Improving the Child Tax Credit would also direct much needed economic resources to the very states that are facing the most difficult economic conditions. There are 37 states in which the CTC improvement would impact more than 15% of the state’s child population. 22 of those states experienced steep declines in home sales last year. Nineteen of those states either have higher unemployment than the national rate, or saw their unemployment rate rise over the past year. Fifteen of those states anticipate a budget deficit in the coming years. A better CTC will have an important impact in these states that need an economic stimulus, and need it to work.

“An improved Child Tax Credit is good for the economy, for working families, and, most importantly, for our nation’s children. It is supported by Democrats and Republicans in Congress, a rarity for a tax initiative,” Lesley added. “An improved Child Credit would directly benefit low-income, working taxpayers with children, providing them with additional resources and thus increasing their ability to spend. Because these low-income taxpayers benefiting from the credit are more likely to spend those resources than individuals in higher tax brackets, demand will increase and the economy will get an immediate boost. In fact, research suggests that every dollar invested in the Child Tax Credit yields $1.04 in economic activity, making it an extremely efficient way to stimulate the economy.”

The Low-Income Home Energy Assistance Program (LIHEAP)
By providing assistance to households that spend an especially large percentage of their income on home energy needs, LIHEAP helps families free some of their resources for more general economic spending. Bolstering LIHEAP for families who already receive this aid means that at least 1.7 million American families with children will be able to spend more resources on needs other than energy costs. Extending LIHEAP aid to the millions more households that are eligible but do not currently benefit would be even more advantageous, both for America’s families and for the American economy.

SCHIP and Medicaid
Many states are required to balance their budgets, and economic downturns often result in cuts to crucial services like SCHIP and Medicaid. When states cut these programs, children and families face the consequences, such as unexpectedly high medical costs, and their ability to contribute to the wider economy collapses. Increasing federal assistance to states will ensure that the health of millions of low-income children does not become an obstacle to economic growth.

“Each year, the political season brings polling, promises, and pundits, but little substance. As we enter the heart of this year’s Presidential primaries, candidates and pundits alike should be talking about what would be best for our nation and our children. Remembering children in policies affecting the economy is an investment that will pay long-term as well as immediate dividends for our economy and our children.”