More Money, More Brain Activity

Babies of low-income mothers who received a large, unrestricted cash gift each month had more brain activity than babies of mothers who received a nominal payment, so reports the Baby’s First Years study.

It remains to be seen whether the brain activity patterns of the first group of babies will lead to stronger cognitive skills like problem-solving, thinking, and planning. However, other studies have shown them to be associated. Conversely, poverty in early childhood has been linked with lower school achievement and educational attainment, as well as poor health outcomes and reduced earnings as an adult. “If I was a policymaker,” noted one consultant to the study, “I’d pay attention to this.”

Reviving the Expanded Child Tax Credit

News of this study and the potential benefit of an unrestricted cash payment has already made its way to Capitol Hill. There, White House officials and members of Congress continue to debate the Build Back Better Act, (2) which includes several provisions aimed at improving infant and maternal health. (3) President Joe Biden is also pushing to revive the temporarily expanded child tax credit, which expired December 15, 2021.

Under the more robust program, child tax credits that previously had been distributed as part of the annual tax refund process were converted to monthly payments. Eligibility was also expanded, and the maximum benefit was increased. Families could receive up to $3,600 annually per child younger than age six and up to $3,000 annually per child six and older.

Safety Net Policies and Children’s Health

Additional research is necessary, but the suggestion that an increased family income could improve long-term outcomes across children’s lifespan is worth considering. However, it may not be a reason to jump at extending near-universal subsidies for children. The total investment for the expanded child tax credit was more than $100 billion for one year.

The payments in the Baby’s First Years study will continue until the children reach age 4, and researchers plan to continue testing the effects of the additional income. They also plan to look more closely at how parents spend the unrestricted money.

The debate over poverty and policy solutions isn’t going away, but these data are intriguing to the conversation.

References:

1. https://www.pnas.org/content/119/5/e2115649119

2. https://www.congress.gov/bill/117th-congress/house-bill/5376/text

3. https://www.kff.org/policy-watch/maternal-health-in-the-build-back-better-act/

Michelle Winokur, DrPH, is the Executive Director of the Institute for Patient Access.