The Unintended Downside of Childhood Allowance Proposals
February 25, 2021
American families need support. This is why a child allowance — a per-child payment to families from the government — has become popular on both sides of the U.S. political aisle. Congressional Democrats recently proposed sending monthly checks to households with children, starting a debate over the government’s responsibility to families and the potential negative implications of a child allowance on employment and childbearing outside of marriage.
A crucial component missing from the debates over the desirability of a child allowance in the U.S. is discussion of child support, that is, money paid by noncustodial parents to help support their children. Formerly married parents often agree to child support arrangements as part of divorce proceedings. But getting child support from unmarried parents can be more complicated. This is when the federal Child Support Enforcement program can help. It works by securing child support from noncustodial parents, and research shows that payment of child support can strengthen the parental bond between noncustodial parents and children. A child allowance would inadvertently weaken the Child Support Enforcement program, and reduced child support would threaten the relationship between noncustodial parents and their children.
