The state of Arkansas should invest in these kids.
The drastic cuts in Medicaid and food assistance resulting from H. R. 1 — often referred to as the “One Big Beautiful Bill Act” — will harm Arkansan children and their families. H.R. 1 also fails to correct a long-standing problem with the federal Child Tax Credit. The Act does increase the maximum credit from $2,000 to $2,200 per child. But the new Child Tax Credit prevents 224,000 Arkansas children from receiving the full credit, simply because their family’s income is not high enough. That’s more than one out of every three children in our state, and the eighth-highest percentage of children left behind in the country by state.
The federal Child Tax Credit requires that a child’s parents have a minimum income of $2,500. There is also a “phase-in rate”: for each $1 of family income above the $2,500, the credit increases by $0.15. However, the maximum refundable credit tops out at $1,700. Ironically, as the maximum credit increases to $2,200 per child, but the refundable limit remains unchanged in H.R. 1, an additional 27,000 Arkansas kids are excluded from full participation in the federal tax credit post the One Big Beautiful Bill Act.
The minimum income requirement, the phase-in rate, and the refundable limit hurt children in both low- and moderate-income families. This is because a family must earn around $30,000 to $50,000 — depending on tax filing status — to earn the full $2,200 per child. In other words, the federal Child Tax Credit leaves out those children who would benefit the most.
A well-designed child tax credit works. Childhood poverty rose dramatically after the American Rescue Plan enhanced child tax credit expired at the end of 2021. The average Kids Count Data Book ranking for states with neither a child tax credit nor an earned income tax credit is 32. The average ranking for states with an established child tax credit is 16. It is no surprise that investment leads to successful and thriving children.
Governor Sanders and the Arkansas Legislature care about children. They demonstrated this during the 2025 General Assembly by enacting legislation to provide free breakfast for all public-school kids in the state, and there is momentum to do the same with lunch. Now is the time to step up with a state-level child tax credit. Such a credit, properly designed, will support those children and families left behind by the federal credit. For example, an Arkansas child tax credit could ensure each qualifying child receives the full $2,200 by making up the difference.
No child should face the crushing effects of poverty, and an Arkansas child tax credit will make a tremendous difference.
Share and number of children under 17 left behind by the Child Tax Credit under the One Big Beautiful Bill Act in 2025 by Arkansas congressional district
| Congressional District | Representative | Estimated share of children ineligible for full pre-OBBBA Child Tax Credit | Estimated # of children ineligible for full pre-OBBBA Child Tax Credit | Estimated share of children ineligible for full OBBBA Child Tax Credit | Estimated # of children ineligible for full OBBBA Child Tax Credit |
|---|---|---|---|---|---|
| Arkansas 1st | Rick Crawford | 34% | 55,000 | 37% | 60,000 |
| Arkansas 2nd | French Hill | 27% | 45,000 | 32% | 53,000 |
| Arkansas 3rd | Steve Womack | 23% | 41,000 | 27% | 49,000 |
| Arkansas 4th | Bruce Westerman | 37% | 56,000 | 42% | 63,000 |
Source: Collyer, Sophie, Christopher Yera, Megan Curran, David Harris, and Christopher Wimer. 2025. Children left behind by the H.R.1 “One Big Beautiful Bill Act” Child Tax Credit. Poverty and Social Policy Brief, vol. 9, no. 9. New York: Center on Poverty and Social Policy, Columbia University.