Tax credits, health care, housing assistance at stake
The Los Angeles wildfires have cost thousands of children their homes. But advocates say the aftermath may also rob them of federal tax credits, health care and housing assistance.
Kids and families who’ve already lost their homes — and possibly a loved one — could also lose federal tax refunds. Every year, the Child Tax Credit leaves behind 17 million children, shutting them out of all or part of the tax credit because their families make too little to qualify. Children who survive the LA wildfires may join these ranks as their family income drops due to job loss, homelessness, or the death or injury of a parent or caregiver in the blazes.
“The Child Tax Credit is not only a pro-child, anti-poverty tool,” said First Focus on Children President Bruce Lesley, “it is also a disaster recovery necessity. First Focus on Children urges Congress to treat it as such by expanding and making it fully refundable going forward. Public policy is immoral if it penalizes children who are victims of natural disasters and slashes their tax credit at the very moment they need it most.”
Kids and families who’ve lost a home may not qualify for federal assistance. An estimated 12,000 homes and other structures burned to the ground in the fires, sending thousands of children and families to stay with friends and relatives, or in motels or other temporary situations. The Department of Housing and Urban Development (HUD) recently announced that U.S. homelessness has reached an all-time high, and that in 2024 children experienced the largest increase in homelessness. But according to HUD’s definition of “homelessness” many of the families displaced by the Los Angeles fires will not qualify for assistance. To be considered homeless by HUD — and therefore eligible for assistance — a child must be living in a shelter or on the street.
“It’s time for policymakers to align the federal definitions of homelessness to account for the realities that families experience,” said Cara Baldari, First Focus on Children vice president of family economics. “Many of the families who lost their homes in these fires will not be on the streets, but that does not mean they are not in dire need of assistance.”
First Focus on Children and other advocates have long supported legislation that would align the federal definitions of homelessness, create additional housing vouchers for high-need families with children, and offer other aid to children and youth in need.
Kids injured in the fires may not receive health care. Studies of past California wildfires have found increased hospital admissions among children for respiratory illnesses. In addition to physical injuries, studies have found that children who experience natural disasters also are more likely to face mental health challenges and trauma, including PTSD, even years after the event. Medicaid, which serves more than half of all U.S. children, is currently structured to respond to increased needs. But recent proposals from policymakers would end Medicaid’s flexibility and make it unable to meet real-time situations.
“Medicaid insures 38 million U.S. children and covers more than 40 percent of all births in this country, giving mothers and babies a healthy start,” said Bruce Lesley, president of First Focus on Children. “We join our fellow advocates in strongly opposing any attempt by lawmakers to restrict, cut or cap Medicaid coverage for any reason, but particularly at the very time that health care needs are rising due to a natural disaster. We should not sacrifice the health of our children to pay for tax cuts for billionaires.”
For more information, please see First Focus on Children’s recent article “When wildfires rage, children should never be left behind.”