**TL;DR: The new reform to the child tax credit system will increase aid to particularly vulnerable communities and reduce child poverty.** On March 11, 2021, President Joe Biden signed his stimulus package into law with [a reformed child tax credit](https://www.cbsnews.com/news/child-tax-credit-stimulus-covid-relief-bill-2021-03-12/). The child tax credit allows parents to claim a tax refund with their underaged children. Before the reform, one child could lead to up to [$1400 in a tax refund](https://www.taxpolicycenter.org/briefing-book/what-child-tax-credit). While significant for reducing child poverty, the original system failed to cover the most vulnerable groups. Since some families may not earn enough to qualify for the tax credit, [the poorest 10% of children](https://www.nytimes.com/2021/03/07/us/politics/child-tax-credit-stimulus.html) in the U.S. did not benefit at all from the program. The reform will extend these benefits to the most vulnerable communities. It will also mandate the government to execute the credit through monthly checks to families instead of an annual tax refund. While the results of the reform will take time to become apparent, current estimates portray an optimistic image. As it stands, the reform will cut child poverty almost [in half](https://static1.squarespace.com/static/5743308460b5e922a25a6dc7/t/600f2123fdfa730101a4426a/1611604260458/Poverty-Reduction-Analysis-American-Family-Act-CPSP-2020.pdf), from 14% to 7.5%. It will particularly benefit children of color and advance racial equity. As it stands, the reform represents a one-year trial. However, a program with such potential should become permanent in the welfare system due to the reasons above.