There is growing evidence that – without prompt action – the effects of the Great Recession will linger for years, causing lasting damage to children and young adults. This report looks at how Congress can address and support the persistent needs of the Recession Generation, and move our country toward a more prosperous future.
Additional state aid is badly needed, with states projecting budget gaps of $140 billion in FY 2011. It is premature to end federal aid to states that helps cover rising Medicaid costs, the result of people losing their jobs and health insurance.
Preserving Tax Credit Levels
Preserving the tax credit levels set in 2009 [Child Tax Credit (CTC), Earned Income Tax Credit (EITC), American Opportunity Tax Credit (AOTC)] will promote work, put resources into the economy to accelerate the recovery, and give families the extra cash they need to ensure their children are getting the best start possible.
Extended funding for youth jobs is crucial to removing barriers to employment, reducing dropout rates, and supporting youth who are disconnected from school and work.
Statements & Quotations
Relatively modest increases in incomes for poor families with young children can make a measurable difference in their children’s earnings in adulthood.
We have the tools at our disposal to boost the economy while helping a generation of children and young adults escape the worst consequences of the recession.