No one should work full time and still live in poverty. We need more policies that keep cash in the hands of workers — and structural changes that guarantee living wages and economic dignity for all.
Expanding the EITC alone won’t fix the problem — but rolling it back has pushed millions of workers even deeper into poverty.
This is not a glitch in the system. It’s a political and policy choice — and one that punishes low-income workers while the wealthy enjoy tax cuts.
The EITC bolsters wages, reduces poverty, and strengthens families. It’s one of the few policies in this country that has consistently worked for working people. But Congress allowed a proven expansion to expire — gutting the benefit for millions of lowwage earners and locking out those who were finally just beginning to be seen.
They Knew It Worked. They Let It Expire Anyway
In 2021, the American Rescue Plan expanded the EITC to more workers:
- It lowered the minimum age to 19 (and to 18 for former foster and homeless youth).
- It removed the arbitrary upper age cap.
- It nearly tripled the maximum credit for workers without children from just over $500 to about $1,500. And it worked — for millions of workers. It helped people pay rent, buy food, and survive a still-unequal economy.
Then Congress let it expire.
Despite decades of bipartisan support, Congressional Republicans have reversed course—choosing to let these expansions expire while pushing for massive tax breaks for corporations and the ultra-wealthy. The same party that once championed the EITC as pro-family and pro-work is now using austerity as cover to undermine one of the most effective anti-poverty tools in existence.
The irony isn’t lost on us. The EITC was signed into law by President Gerald Ford and expanded under President Ronald Reagan, whose 1986 Tax Reform Act included major EITC enhancements. At the time, Reagan described the legislation as "the best antipoverty bill, the best pro-family measure, and the best job-creation program ever to come out of the Congress."
As of 2025:
- The maximum credit for childless workers has been slashed back to $649.
- Millions of workers under 25 and over 64 are locked out entirely.
- Once again, those at the margins — young, single, low-wage workers, many of them Black and BIPOC — are being told they don’t count.
This is not fiscal prudence. It’s structural exclusion.
What a Just EITC Looks Like — and What It Requires
We don’t need another study. We need political courage. A fair and inclusive EITC must:
- Lower the Eligibility Age to 19 — and 18 for Foster and Homeless Youth
Lowering the eligibility age would significantly reduce poverty among 18–24- year-olds, especially when combined with increasing the credit value. 1 Young adults are working, contributing, and supporting themselves. They deserve support now — not when lawmakers decide they’ve earned it. - Remove the Age Cap
Age discrimination has no place in anti-poverty policy. - Raise the Credit Value for All Workers
The EITC should reflect the real cost of living — for all workers, with or without children. Credit amounts should be indexed to what it actually takes to meet basic needs through full-time work. - Expand Eligibility to ITIN Filers
Immigrant workers who pay taxes using an Individual Taxpayer Identification Number deserve the same support as other workers. No one should be excluded from tax benefits simply because of their immigration status. - Remove Barriers to Access
The EITC should be simple, automatic, and accessible — not a maze of paperwork and guesswork.
Most importantly, we can’t claim to support working people while using tax policy to claw back what little they earn.
A just tax policy isn’t about tweaking formulas — it’s about making sure no one who works full-time lives in poverty. That means designing systems that center dignity, not austerity.
This Could Change Lives — Right Now
A real expansion of the EITC could:
- Make 4.4 million young workers newly eligible.
- Extend meaningful support to 5.2 million additional low-wage workers.
- Contribute to a historic reduction in poverty — just as it did in 2021, when combined expansions to the EITC and Child Tax Credit helped drive child poverty down to its lowest recorded level, from 9.7% to 5.2%.
What Nonprofits Can Do Now
Nonprofits are on the front lines of this fight — and we don’t have to wait on Congress to act.
- Expose the rollback. Help communities understand what was taken and why it matters.
- Support free tax filing. Make sure eligible people can still claim what they’re owed.
- Target outreach. Focus on the groups who are most excluded: young adults, single workers, gig workers, and seniors.
- Keep up the pressure. Call on elected officials — local, state, and federal — to reinstate and expand the EITC.
- Make the EITC part of the broader fight. Connect it to living wage campaigns, housing justice, and the fight for economic dignity.
Poverty is a Policy Choice. So is Equity.
The rollback of the EITC wasn’t inevitable — it was a political decision.
So is our response.
Tax policy isn’t neutral. It either reinforces inequality or helps dismantle it.
Join us in calling for an EITC that works for all workers — not just some. Raise your voice, mobilize your networks, and hold your representatives accountable.
Because poverty is a policy choice.
And equity can be one too.