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Federal spending projected to decline by $230 per child in 2024: report

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2 years ago

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Catherine Delahaye | Digitalvision | Getty Images

Federal spending on children climbed to a peak of $11,690 per child in 2021 in response to the Covid-19 pandemic.

Since then, there has been a “steep decline” in those expenditures, which fell to $10,190 per child in 2022 and then to $8,990 per child in 2023, adjusted for inflation, according to new research from the Urban Institute, a Washington, D.C., think tank focused on economic and social policy research.

In 2024, that spending is expected to level off to $8,760 per child — a decline of about $230 per child from the previous year, the research found.

Covid relief — through federal legislation as well as state-level initiatives — helped provide “unprecedented” new funding in 2020 and 2021 that significantly improved conditions for children and their families, according to the report. Those efforts included tax provisions, social services, training and housing programs.

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Those pandemic-era changes — which were largely temporary — had a “big and immediate” effect on poverty, according to Heather Hahn, associate vice president at the Urban Institute and a co-author of the report.

“For children, we saw poverty just plummet because they had more money,” Hahn said.

In 2021, child poverty fell to 5.2%, down from 12.6% in 2019. The expiration of the aid drove child poverty back up to 12.4% in 2022.

Tax expenditures represent the largest drop in federal spending on children between 2022 and 2023, while there were also sharp declines in spending on nutrition and more modest changes in education funding, according to the Urban Institute.

Covid federal tax expansions were largest in 2021

Pandemic-era tax expansions were the largest in 2021 and included direct payments to families.

Three rounds of stimulus check payments deployed by the federal government between March 2020 and March 2021 included larger maximum payments for families with children.

The first stimulus payments provided an additional $500 per dependent under age 17. The second round of payments provided $600 per dependent under 17. And the third, most generous payments provided $1,400 per dependent, this time including those ages 17 and 18. To qualify, certain income thresholds and other restrictions applied.

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Federal lawmakers also temporarily put in place a more generous child tax credit for 2021 with maximums of $3,000 per child and $3,600 per child under age six — up from $2,000 per child.

The child tax credit was also made non-refundable, allowing families with little to no income to still access the full sums. As with the stimulus checks, families needed to meet income and other requirements to qualify.

By 2023, the stimulus check money had largely been paid out and the child tax credit expenditures had fallen back below pre-pandemic levels, according to the Urban Institute.

Child tax credit ‘a central part of the discussion’

Families may receive even less money when the Tax Cuts and Jobs Act expires in 2025, barring action by Congress before then. At that point, the current child tax credit of up to $2,000 per child under age 17 is poised to fall to $1,000 per child under age 17.

Lawmakers may again consider making the child tax credit more generous.

“The long-term future of the child tax credit and this broader support for families and children is going to be a pretty central part of the discussion next year,” Garrett Watson, senior policy analyst at the Tax Foundation said of the upcoming federal tax policy deadline Congress faces.

Along with the expanded child tax credit, lawmakers are also poised to look at other changes to the tax code that are set to expire, particularly the expanded standard deduction and repeal of the personal exemption. Taken together, those three changes net out to be revenue neutral, and therefore are interrelated, Watson said.

“Generally speaking, there is a bipartisan interest in at least maintaining current policy, meaning the child tax credit that was established and expanded in 2017,” Watson said.

However, there is no consensus on what changes should be included to that credit in the future, he said.

As part of her presidential campaign, Vice President Kamala Harris has suggested restoring the expanded child tax credit of up to $3,600 and providing $6,000 for families with newborn children. Meanwhile, Republican vice-presidential candidate JD Vance has said he wants to raise the child tax credit to $5,000.

Generally, federal spending on children will have to compete with other priorities.

The Urban Institute projects that by 2034 all categories of federal expenditures on children as a share of gross domestic product will decline below current levels. That’s as other areas, like interest payments on the national debt and outlays to Social Security, Medicare and Medicaid, are expected to take up a larger share of federal spending by that year.

Traditionally, states and localities have provided the most spending for children, primarily through education, Hahn said. The federal government temporarily had a larger role in spending on children during the pandemic, she said.

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$20,000 Caution Bond Requirement for US Visa Applications imposed on 50 Countries

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7 days ago

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August 8, 2026

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The United States Department of State has officially implemented a revised visa policy introducing a mandatory posting requirement for caution payments of up to $20,000 on select foreign travel applications. Under the updated regulatory framework, consular officials are authorized to require temporary nonimmigrant visa applicants from targeted foreign countries to post a refundable financial bond of $20,000 as a condition for visa issuance. The policy mechanism is designed to address diplomatic concerns regarding high overstay rates among temporary visitor, business, and educational visa categories.

The caution bond pilot program applies selectively to foreign nationals from designated countries whose diplomatic entities record historical visa overstay rates exceeding established federal thresholds. Under administrative guidelines published by the State Department, the full financial deposit is posted directly to a dedicated federal escrow account prior to final visa issuance. The entire caution payment is automatically refunded to the applicant upon verified proof of timely departure from the United States in strict compliance with the authorized duration of stay. Conversely, failure to depart within the legal timeframe results in full forfeiture of the posted financial bond to the United States government.

Diplomatic representatives and travel policy experts have expressed varying perspectives regarding the operational implementation of the caution bond system. Administration officials emphasize that the measure serves as an effective, market-based incentive to enforce international travel compliance and preserve domestic immigration security standards. However, international trade organizations and foreign diplomatic missions have raised concerns regarding the financial burden imposed on legitimate business travelers, foreign students, and commercial partners from developing nations.

The United States finalized the rule to make the temporary visa bond program permanent, taking effect on August 3, 2026. The updated permanent regulation replaces the prior 12-month pilot, eliminates the lowest $5,000 tier, and raises the maximum required bond amount to $20,000 for specific B-1/B-2 business and tourist visa applicants.

Here is the list of the 50 countries on the list as o August 3, 2026

African Nations (31 Countries)

  • Algeria
  • Angola
  • Benin
  • Botswana
  • Burundi
  • Cabo Verde (Cape Verde)
  • Central African Republic
  • Côte d’Ivoire (Ivory Coast)
  • Djibouti
  • Ethiopia
  • Gabon
  • The Gambia
  • Ghana
  • Guinea
  • Guinea-Bissau
  • Lesotho
  • Malawi
  • Mauritania
  • Mauritius
  • Mozambique
  • Namibia
  • Nigeria
  • São Tomé and Príncipe
  • Senegal
  • Seychelles
  • Tanzania
  • Togo
  • Tunisia
  • Uganda
  • Zambia
  • Zimbabwe

Asian & Eastern European Nations (11 Countries)

  • Bangladesh
  • Bhutan
  • Cambodia
  • Georgia
  • Kyrgyzstan
  • Mongolia
  • Nepal
  • Papua New Guinea
  • Tajikistan
  • Turkmenistan
  • Uzbekistan

Caribbean & Latin American Nations (5 Countries)

  • Antigua and Barbuda
  • Cuba
  • Dominica
  • Grenada
  • Venezuela

Oceanian Nations (3 Countries)

  • Fiji
  • Tonga
  • Vanuatu

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Next-Generation Retirement Planning: Managing Longevity Risk and Variable Income Streams

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1 week ago

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August 7, 2026

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Retirement planning strategies are evolving in 2026 to address increased life expectancies, shifting dynamic market conditions, and the transition away from traditional defined-benefit pensions. Individual investors and financial advisors are abandoning rigid retirement models in favor of flexible, multi-asset strategies designed to mitigate longevity risk and preserve purchasing power over multi-decade retirement horizons.

Mitigating Longevity Risk with Dynamic Asset Allocation
As average life expectancies extend past eighty-five years, one of the primary financial risks facing retirees is outliving their accumulated wealth. Traditional fixed income allocations—such as the standard 60/40 equity-to-bond portfolio—are being reevaluated to ensure portfolios generate sufficient capital growth alongside reliable income.

Financial planners recommend maintaining a meaningful equity allocation throughout retirement to offset long-term inflation erosion. High-dividend equity funds, global real estate investment trusts (REITs), and inflation-indexed Treasuries are combined to create diversified portfolios that deliver both growth and income stability.

The Transition to Dynamic Withdrawal Strategies
The classic “4% safe withdrawal rule” is increasingly replaced by dynamic withdrawal strategies that adapt annually based on market performance. Under a dynamic withdrawal framework, retirees adjust their annual distribution rates within pre-set caps and floors:
– Market Upside: During strong market returns, retirees can increase discretionary spending or fund family legacy gifts.
– Market Downturns: During market pullbacks, spending distributions are temporarily reduced to prevent sequence-of-returns risk and preserve core investment principal.

Guaranteed Lifetime Income Options and Deferred Annuities
To establish a guaranteed baseline for essential living expenses, individuals are incorporating modern fixed-indexed and deferred longevity annuities into their broader retirement architectures. Modern annuity structures offer competitive return caps, transparent fee schedules, and inflation-adjustment options.

By funding essential expenses—such as housing, healthcare, and insurance—with guaranteed income streams from Social Security, pensions, and annuities, retirees can manage discretionary investment portfolios with greater flexibility and lower emotional stress during market volatility.

Actionable Steps for Future Retirees
1. Calculate Baseline Retirement Expenses: Determine fixed living costs and map guaranteed income sources to cover essential expenditures.
2. Adopt Flexible Withdrawal Rules: Implement dynamic spending rules to protect investment principal against market downturns.
3. Incorporate Inflation-Protected Assets: Maintain exposure to dividend-growing equities and inflation-indexed bonds to safeguard long-term purchasing power.

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Building Generational Wealth: Family Governance, Estate Tax Optimization, and Asset Protection

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2 weeks ago

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August 1, 2026

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As the largest intergenerational transfer of wealth in history accelerates, high-net-worth families, entrepreneurs, and individual investors are placing heightened emphasis on comprehensive estate planning, family governance, and asset protection. Preserving capital across generations requires a balanced approach combining tax-efficient legal structures with open family communication and financial literacy education.

Optimizing Estate Tax Exemptions and Trust Structures
With potential modifications to federal estate tax exemption thresholds on the horizon, proactive estate planning is essential for high-net-worth households. Estate planning attorneys and wealth advisors are establishing multi-generational trust structures to transfer wealth efficiently while minimizing estate and gift tax exposure.

Popular structural strategies include:
– Irrevocable Life Insurance Trusts (ILITs): Utilizing life insurance proceeds to provide liquidity for estate tax obligations without expanding the taxable estate.
– Grantor Retained Annuity Trusts (GRATs): Transferring rapidly appreciating assets to beneficiaries with minimal gift tax consequences.
– Dynasty Trusts: Preserving wealth across multiple generations while providing long-term asset protection from creditor claims and legal liabilities.

Establishing Family Governance and Financial Education
Legal and financial structures alone cannot guarantee long-term wealth preservation without effective family governance. Financial advisors report that a significant percentage of multi-generational wealth dissipation stems from lack of communication and inadequate financial preparation among heir generations.

Families are establishing formal family governance frameworks, including periodic family meetings, written mission statements, and structured philanthropic foundations. Involving younger family members in charitable grant-making and investment discussions fosters financial stewardship and prepares heirs to manage family assets responsibly.

Digital Asset Custody and Legacy Planning
In today’s modern economy, estate planning must extend beyond physical real estate and traditional brokerage accounts to encompass digital assets. Comprehensive estate plans now include detailed inventories and legal access protocols for corporate domain names, intellectual property, digital media rights, and cryptocurrency holdings.

Fiduciaries and estate executors should be provided with secure, encrypted access mechanisms and clear legal authority to manage and transfer digital holdings in accordance with the owner’s estate directions.

Practical Steps for Legacy Planning
1. Review and Update Estate Documents: Ensure wills, revocable trusts, and power-of-attorney designations accurately reflect current family structures.
2. Establish Structured Trusts: Utilize irrevocable trusts to protect assets from creditors and minimize future estate tax liabilities.
3. Create a Digital Estate Inventory: Document access protocols and legal permissions for all online accounts, intellectual property, and digital assets.

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