Staying Afloat: How Families Raising Children With Disabilities Used the Expanded Child Tax Credit

Abstract

While previous research has examined usage patterns and impacts of the expanded U.S. Child Tax Credit (CTC), less is known about how families raising children with disabilities responded to the CTC. While it is well-established that these families face greater financial constraints than other families, their utilization of such public programs remains underexplored. Using a novel, two-wave probability-based panel survey of more than 1,700 CTC recipients, this study investigates financial hardships faced by families raising children with disabilities, and their use of the CTC. Findings reveal high rates of financial hardship among these families, with most facing at least one to two hardships and nearly a quarter experiencing more. The study supports literature linking increased hardship to greater financial risks, healthcare costs, and routine expenses faced by families raising children with disabilities. Furthermore, it quantifies the multiplicity of hardships, illustrating that these families often face multiple challenges simultaneously. The results contribute to the understanding of financial vulnerability among families with children with disabilities and offer insights into potential benefits and limitations of policy interventions like the CTC. Future research directions and implications for practice are discussed, emphasizing the need for comprehensive support mechanisms tailored to the unique needs of these families.