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Posted: 2022-09-13T14:10:38Z | Updated: 2022-09-13T18:05:42Z

WASHINGTON Poverty fell to a new low last year thanks to new federal spending passed in response to the coronavirus pandemic, according to new federal data released Tuesday .

Extra unemployment benefits, stimulus checks and a monthly child allowance helped push the poverty rate to 7.8% in 2021, according to an annual Census Bureau poverty measure that accounts for tax benefits and stimulus payments. The rate had been 9.1% in 2020.

The monthly child benefit slashed child poverty to 5.2%. Both the overall and child poverty figures are the lowest on record, officials said.

Refundable tax credits, including the child tax credit, kept 9.6 million people out of poverty in 2021, the Census Bureaus Liana Fox told reporters on Tuesday.

Democrats included the various relief policies in a $1.9 trillion bill called the American Rescue Plan, which passed Congress on a party-line basis in March 2021. The bill represented Democrats vision of a more humane political economy that better supports parents and laid-off workers.

The bill provided $1,400 stimulus checks to most Americans, added $300 to weekly unemployment benefits, and gave parents as much as $300 per minor child each month from July through December.