American Rescue Plan Provided Much Need Support to Michigan Families New Study Finds.

Detroiters are actively engaged in conversations ensuring families are economically healthy and viable.

The Center for the Study of Social Policy (CSSP) recently released its finding on how the American Rescue Plan’s (ARPA) investments in the Child Tax Credit (CTC) and Childcare Stabilization Grants impacted Michigan families. For those of us working in the childcare industry and families raising young children, the results confirmed that the childcare system is broken, undervalued, and the temporary funding provided much-needed support to families throughout the state of Michigan and here in Detroit.

The brief, A Godsend: How the Temporary Investments in the Child Tax Credit and Child Care Impacted Michigan Families, the first in a series, examined the impact of the new, short-term investments in the Child Tax Credit and the childcare sector on families and caregivers in Michigan.

Key highlights from the research include:

  • Michigan families’ top five uses of the CTC were on basic needs (food/groceries, rent/mortgage, childcare/daycare, phone/Internet/utility bills, and shoes/clothing).
  • Nearly 90 percent of Michigan families felt the monthly payments reduced their stress about money.
  • More than half of Michigan families struggle to find childcare for the hours they need.
  • Childcare challenges make it difficult for Michigan parents to work consistent hours or jobs, with 78% and 49% of parents reporting they had reduced work hours or quit a job at some point in the past due to childcare challenges, respectively.

The interviews and survey data demonstrated the intense pressure Michigan families face to meet their needs and find affordable childcare. The findings make it clear: Robust, long-term investments in both the Child Tax Credit and childcare are necessary so that all families—particularly families of color—have the support they need to survive and thrive. Download the complete report here.

About the Research
To learn about the impact of the American Rescue Plan’s short-term investments in the CTC and childcare, CSSP conducted interviews with low- and moderate-income (ranging from $0-$55,000/year) families of color, childcare providers, and stakeholders in Michigan between September and December 2021. To broaden this perspective, CSSP fielded a survey of more than 500 Michigan caregivers with children under 18 years old, with respondents disproportionately caregivers of color and low-and moderate-income.

About the Center for the Study of Social Policy (CSSP)
CSSP is a national, non-profit policy organization that connects community action, public system reform, and policy change. We work to achieve a racially, economically, and socially just society in which all children and families thrive. We translate ideas into action, promote public policies grounded in equity, support strong and inclusive communities, and advocate with and for all children and families marginalized by public policies and institutional practices.

Posted on May 17th, 2022 | View All Posts