We had a short-lived experiment. One many Republicans abhorred.  Because helping the poor is not in their DNA.

Last year, we adopted the Advanced Child Tax Credit (ACTA).   As part of the American Rescue Plan, it raised the child tax credit to $ 3600 for kids under 5, and to $ 3000 for those between 5 and 17. (The child tax credit has been around for 24 years now- and the maximum used to be $ 2000 per child.) But, that’s still not really the big change.

Instead of waiting to file taxes and getting a big check, the USA delivered $300 a month (for those under 5; $ 250 for each older kid).   An electronic deposit, which means folks could have bank accounts- and wouldn’t fall prey to those pay day lenders to cash a pay check (when they don’t have a bank account.)  And, that program lowered the poverty rate across America  from 17.5% down to 11.9%.

But, there’s more.  We can not forget what the Center on Poverty and Social Policy discerned.  For every buck provided by the child tax credit, our society gleans $8 from the higher future wages of the children being helped.

And, yet, there’s even still more benefits.  This new study makes it clear.

When and if we provide low-income families more money, we make it possible for the child to have a better life.  That we knew.  But, this new data indicate that the child’s brain activity is improved, and that change is evident by the first birthday.

Dr. Kimberly Noble (Columbia) and her team (SV Troller-Renfree [Columbia]; MA Costanzo, K Magnuson, S Halpern-Meekin [U Wisconsin]; GJ Duncan [UC Irvine]; LA Gennetian [Duke]; H Yoshikawa [NYU]; and NA Fox [Maryland]) from academia across America have determined that child poverty leads to  reduced grey matter volume in the hippocampus and frontal cortex of the child.  That negatively affects the  subsequent development of thinking and learning- and that deficit is left with the child throughout adolescence.

These data were obtained using the  Baby’s  First Years Study; in this case a subset of some 1000 babies from low-income families in four metropolitan areas: New York City, greater New Orleans, Minneapolis–Saint Paul and Omaha.

Those chosen families had an average annual income of just over $20,000 and were part of the study during 2018 and 2019.  Follow-up will continue until the child attains his/her fourth birthday.

So, what were the exact particulars of this study?  Published as The impact of a poverty reduction intervention on infant brain activity in the Proceedings of the National Academy of Sciences, the data really demonstrates that we MUST reinstitute the ACTA as soon as possible.

Because, in this study, half the mothers (within the cohort of babies in this study) received a monthly stipend of $333 and the other half only received  $20 a month. (The $ 333 was chosen because there was some data that this was the threshold at which major improvements could be observed; it’s less than the ACTA payments for children under 5.)   That first payment was delivered on or about the birth of the baby.  And, like the Advanced Child Tax Credit, there were no stipulations as to what or how that money was employed.

When the babies reached their first birthday, some 1, 435 had their resting EEG (electroencephalography) determined to discern their brain activity.   Of those 40% were among the cohort receiving $ 333 per month and 60% only got $ 20 monthly.   (The pandemic made total, frequent,  follow-up more difficult.)

The cohort of children receiving the larger stipend demonstrated elevated brain activity, in higher frequencies, than those kids whose folks only got $ 20 a month.  Yes, that means reducing poverty has a marked effect (an improvement) in high-frequency brain activity.

You will note that with no restrictions on how the money was used, there is no clue as to what in the home environment changed or why that affected brain activity.  But, it’s absolutely clear that the money dramatically improved the lives of the child.

Brain plasticity is clearly related to economic resources.