Should the U.S. enact a universal child allowance?

The current tax system provides financial support to some families with children through the administration of a Child Tax Credit (CTC), which can be worth as much as $1,000 per child, in addition to the support provided through the long-standing child tax exemption. Though several policymakers have proposed expanding or amending the CTC to provide additional assistance, the idea of a Universal Child Allowance—which would instead provide a cash grant to all families with children—is also gaining increased attention as a way to help families meet the costs associated with raising a child. Why do countries around the world have such a program and would it make sense in the U.S.? What would such an allowance look like and what would be its benefits and costs?

On May 1, the Center on Children and Families at Brookings—along with the American Enterprise Institute, the University of Michigan’s Poverty Solutions, the University of Wisconsin’s Institute for Research on Poverty, and Columbia University’s Center on Poverty and Social Policy—hosted leading experts to discuss the current safety net and potential benefits and costs of a Universal Child Allowance. The event included presentations and discussions of two new papers by proponents of the Universal Child Allowance, and concluded with keynote remarks by Representative Rosa DeLauro (D-CT).