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By Ashley Burnside

As we anticipate Tax Day, the April 15 deadline for Americans to file their annual tax return, many households are waiting for their refunds, which will include critical tax credits like the Earned Income Tax Credit (EITC) and the Child Tax Credit (CTC). Although the wealthy can find ways around paying taxes, the tax filing process should be designed to ensure that everyone pays their fair share. That’s because the revenue from our tax returns is reinvested into critical public goods that we all rely on, like public schools and roads.

But this year, the Internal Revenue Service (IRS) is under threat, and the agency will have less bandwidth and fewer resources to process tax returns and provide support to the taxpayers who need it. The proposed IRS layoffs and funding cuts to the agency will harm taxpayers and hurt our economy. And the data requests for access to payment systems by Elon Musk’s Department of Government Efficiency (DOGE) are a threat to the security and protection of Americans.

IRS Funding and Staffing is a Critical Investment to Help Americans File Their Taxes

Having a fully staffed and funded IRS is important to our country’s well-being. Workers are required to file their taxes each year, but the process can be expensive, time-consuming, and complicated. Many taxpayers turn to private companies like Turbo Tax and H&R Block to file their taxes because they aren’t able to access free services within their communities—leading to an average cost of $140 to file taxes.  Americans spend an average of 8 hours filing their return.

All of us have surely been left scratching our heads at some point when trying to understand what numbers to use when reporting our income or whether a particular deduction applies to our circumstances. For gig workers and college students, the tax filing process can be especially complex. Tax filers are often scared to file incorrectly and to be penalized—creating even more anxiety in an already complicated process.

For all these reasons, we must have a fully funded and fully staffed IRS with comprehensive customer service available and resources to make tax filing more accessible. But the Trump Administration has threatened to cut up to half of the IRS workforce and to dramatically cut funding for the agency.

When we invest in IRS staff who can help audit wealthy taxpayers, this leads to more revenue for our nation. Unfortunately, these staff are under threat from the Trump Administration. Through the Inflation Reduction Act, lawmakers invested $80 billion in the IRS, and this additional revenue has already had positive benefits. The IRS improved its ability to offer customer service – reducing phone wait times to an average of just over 3 minutes during the 2024 tax filing season. The agency answered about 90 percent of phone calls during the filing season as well. The IRS also used the increased funding to begin improving outdated interfaces and technology and to audit complex, high-income tax filers who evade paying their taxes. As of December 2024, the IRS collected $1.3 billion from very wealthy taxpayers who had not paid their overdue tax debt or filed their tax returns. Importantly, every $1 spent on auditing individuals with high incomes garners an additional $12 in revenue for our nation.

Investments in the Direct File Tool and Taxpayer Assistance Clinics are Vital

The IRS has established the Direct File tool, which provides a free and easy way for people to file their taxes online. In 2024, the program’s first year, 12 states used Direct File and users saved an estimated $5.6 million in tax preparation fees. This year, 25 states have implemented the tool. Lawmakers should invest in the IRS to help make the Direct File tool permanently available. In addition, lawmakers should invest in Volunteer Income Tax Assistance (VITA) clinics that help people file their taxes.

Stealing Private Taxpayer Data Will Reduce Trust and Lead to Less Revenue

DOGE is attempting to access private taxpayer data—including from filers with Individual Taxpayer Identification Numbers (ITINs), which are often used by immigrants. This risks the trust and security of Americans and may make people in immigrant communities reluctant to file their taxes, reducing the revenue our nation gets from these taxpayers. The administration has also proposed transferring IRS staff to the Department of Homeland Security where they could assist with deportations. Diverting IRS employees away from their primary functions, such as collecting revenue from the ultra-wealthy who may be evading taxes, to focus instead on deportation would reduce public revenues by billions of dollars annually. This would ultimately reduce efficiency within IRS tax collection systems.

We Must Invest in the IRS, Not Deplete It

Lawmakers should invest in the IRS, not deplete it. Tax filers are better off when our nation invests in resources like the Direct File tool and customer support services. And our economy is better off when lawmakers invest in staff who can audit the wealthiest individuals to raise revenue for public goods and ensure everyone is following the law and paying their fair share. Due to these disruptions in the IRS, the Department of Treasury anticipates a decrease of more than 10 percent—some $500+ billion—in tax receipts in 2025 compared to 2024. The proposed cuts to the agency are part of a larger plan by lawmakers to fund tax breaks for the very wealthiest Americans and corporations at the expense of everyday people.

 

This brief, part of the TANF 101 series, explains the fixed block grant awarded to states under Temporary Assistance for Needy Families (TANF).

By Suzanne Wikle

Republicans in Congress have proposed enormous cuts to Medicaid, which provides insurance to more than 70 million people—or 1 in 5 Americans. One way they plan to cut Medicaid is by increasing red tape and limiting eligibility under the false guise of “work requirements.” This proposal will cause people to lose their health care.

>> View the infographic here

By Ayurella Horn-Muller & Naveena Sadasivam

(EXCERPT)

Policy analyst Teon Hayes of the Center for Law and Social Policy said the funding freeze and corresponding food and farm program terminations are going to “send a shockwave” throughout the nation, given the growing demand for charitable food donations. “A federal funding freeze of this magnitude definitely amplifies this strain, and the reduction in funding of these programs … is definitely going to weaken local food systems,” said Hayes. All of this is compounding with an ongoing push by Congressional Republicans to drastically reduce nutrition program funding in the farm bill and the budget reconciliation bill, she said.

Read the full article here

This statement can be attributed to Cemeré James, interim executive director of the Center for Law and Social Policy (CLASP)

Washington, D.C., March 14, 2025 – The full-year continuing resolution (CR) passed today by Congress undermines the security, stability, and well-being of millions of workers, immigrants, families, and children throughout the country. It provides no guardrails to stop the administration from using funds for whatever purposes President Trump and Elon Musk deem necessary to further their own political agenda. This CR does nothing to improve the lives of low-income families and children struggling across the country.

While the CR does avoid a government shutdown, it increases military spending by $6 billion, allocates an additional $485 million for Immigration and Customs Enforcement, and decreases nondefense spending by $13 billion. It also largely keeps spending levels the same as FY2024, at a time when inflation and costs are rising. This means that even though specific programs may not be targeted by line-item cuts, the current funding levels won’t go as far. For example, since federal housing vouchers won’t cover as many people, 32,000 people could face eviction.

Without safeguards specifying Congressional intent on how funds are spent, the administration could significantly cut or eliminate funding for programs that support housing assistance; public K-12 schools; Historically Black Colleges and Universities; maternal health; child care and early education; and postsecondary education. This undercuts Congress’s “power of the purse” and threatens its oversight authority over the Executive Branch.

This is one of the reasons that ultra-conservatives, who in the past have staunchly opposed stopgap funding measures like continuing resolutions, have been explicit about their support for this CR: it enables administration officials to continue dismantling and defunding government programs that they oppose.

The CR also includes a cruel provision that requires Washington, D.C. to cut more than $1 billion from its current budget. These are D.C. funds that come from locally paid taxes, not federal funds. Although the Senate voted on a standalone bill to restore funding back to D.C., until the House votes on the bill, D.C. could still face hiring freezes and furloughs throughout city agencies. This could result in unsafe streets, increased wait times for EMS calls, and a hiring freeze for teachers, among other devastating impacts to the city’s economy. We urge the House to pass the bill as soon as possible to restore D.C.’s budget.

CLASP remains committed to supporting families and communities and ensuring that they can meet their basic needs. This CR does not achieve that goal.

This statement can be attributed to Ashley Burnside, senior policy analyst at the Center for Law and Social Policy (CLASP) 

Washington, DC, March 13, 2025—CLASP is disappointed to see the cancellation of the Temporary Assistance for Needy Families (TANF) pilots in five states previously approved by the Administration for Children and Families. Congress authorized these pilots under the Fiscal Responsibility Act of 2023 to provide up to five states with the opportunity to measure outcomes in their TANF programs by examining metrics around earnings and family stability and well-being. States will now need to reapply to be a part of the pilot. 

Under current law, states must engage TANF recipients in work requirements to meet a rigid measure called the Work Participation Rate, which doesn’t account for the individualized needs of recipients who face multiple barriers to employment. The pilot could be a positive step in allowing states to be innovative in how they support families facing financial emergencies and providing pathways to economic stability for families.  

The sudden reversal of the pilot for the five states that were approved last fall is concerning. These states have already been selected and have begun working with contractors to implement their pilots. This cancellation reflects an ongoing pattern of federal agencies ignoring actions by Congress and wasting time and resources at the state and federal levels. The Administration for Children and Families should support innovation at the state level, not hinder it.  

By Daniel de Visé, USA TODAY

(EXCERPT)

Meanwhile, Congressional budget resolutions call for massive cuts in federal funding, potentially forcing states to make “incredibly hard decisions” about Medicaid and other programs, according to a report from the left-leaning Center for Law and Social Policy.

Read the full article here.

Washington, D.C., March 4, 2025—David Hansell, Chair of the CLASP Board of Trustees issued the following statement today:

The Board of Trustees, Staff, and Alumni of the Center for Law and Social Policy (CLASP) mourn the loss of Alan Houseman who passed away on February 26, 2025, after a brief illness.

Alan’s legacy at CLASP is unparalleled. He served as the organization’s executive director for a remarkable 32 years, joining in 1981 (only 12 years after the organization’s founding) and retiring in 2013. He built a strong, vital organization that transformed the lives of millions of people with low incomes.

“With Alan at the helm, CLASP was an acknowledged leader in the fight to combat poverty and injustice. Under his leadership, CLASP provided crucial guidance to executive branch and congressional staff, as well as to like-minded organizations, and helped develop the next generation of advocates.” 

— Joe Onek, Former CLASP Executive Director & Board Chair; Current CLASP Trustee

During his tenure, Alan led CLASP’s efforts to strengthen and preserve the Legal Services Corporation, which funds local legal services offices across the country to ensure people with low incomes have access to quality representation. An outspoken advocate for legal aid as a tool for fighting poverty, he co-authored a definitive report: Securing Equal Justice for All: A Brief History of Civil Legal Assistance in the United States.

“Alan was a visionary leader and champion in the legal services community.  He was one of the first presidents of the Legal Services Corporation, a nonprofit corporation created by Congress to assure people with low incomes have access to civil legal assistance in America.  Through his work at CLASP, he provided counsel and guidance to legal services programs during pivotal times when Congressional restrictions sought to limit how legal services lawyers could represent their clients.” 

— LaVeeda Morgan Battle, Former CLASP Board Chair; Current CLASP Trustee

He also set CLASP on its course as a leading advocate for families and children—fighting for improved child support systems, federal welfare reform, expanded child care and early education, and comprehensive job training and education programs.

While the political climate in Washington, D.C. grew more contentious over time, Alan established CLASP’s reputation as a no-nonsense, nonpartisan voice with only one bias: what’s best for people with low incomes. That approach led to landmark policy victories during his tenure in the movement for economic justice.

“Alan did so much to lay the foundation for what CLASP is today. He had an unstinting, inspiring belief in the power of public policy to advance equity for low-income people and infused CLASP with that commitment. His proud legacy endures.”

— David Dodson, Current CLASP Trustee

In the child policy sphere, Alan was instrumental in transforming the child support system from a focus on recovery of state welfare assistance to a focus on family support; establishing Early Head Start to bring vital Head Start services to infants and toddlers; launching the Child Care and Development Block Grant; and advocating for passage of the Fostering Connections and Increasing Adoptions Act.

“Alan was such a remarkable leader in so many ways. As a career-long legal aid lawyer in Chicago, I know that Alan’s crucial work to advise and support local programs and secure federal sources of funding was both crucial and sensitive to local concerns — he had been a state-based legal aid guy himself. And that contribution to the cause of equal justice was magnified many times over by the way he took CLASP into its national role in fighting poverty. He leaves a giant imprint for the good on many systems and millions of lives. We will miss our champion and good friend.”

— John Bouman, Current CLASP Trustee

In the broader realm of addressing poverty, Alan ensured that CLASP played a crucial role in the American Recovery and Reinvestment Act of 2009, which included the $5 billion TANF emergency fund to support the economic security of millions of people with low incomes. CLASP’s work on this emergency fund included extensive technical assistance to states so they could get assistance to the people who needed it most.

“Alan’s 30-plus-year tenure at CLASP shaped the extraordinary organizational strengths that I found when I succeeded him, that motivated me to come to CLASP, and that still make the organization indispensable today. These include the outstanding quality of the work; the commitment to both data and story-telling; the core underlying values of economic and racial justice; the combination of breadth across specific policy topics and depth within each; the understanding of how national policy connects to state and local policy and implementation and to the lives of individuals and families; and the modesty and lack of ego so characteristic of Alan and, because of him, of CLASP. To this day, that lack of ego is a defining feature people mention about CLASP – and one of the big reasons CLASP is so valued as a coalition partner. We’re in a moment when we need Alan’s generosity of spirit, wisdom, and commitment to unfailing core values more than ever.  We will miss him, and I know I will try my best to live up to his memory.”

— Olivia Golden, CLASP Executive Director, 2013-2022

After stepping down from CLASP, Alan served as President of the Consortium for the National Equal Justice Library. His numerous awards and honors include the National Equal Justice Award, the Coalition on Human Needs Heroes Award, and the Oberlin College Distinguished Achievement Award.

In these tenuous times for our country, as we witness the likely shrinking or dismantling of programs that support economic security, Alan’s lifetime of service will inspire us and inform our strategy.

Alan’s family asked us to share the following information:

We want to thank everyone who has gotten in touch regarding Alan’s sudden passing.  Your thoughts and well-wishes are deeply appreciated, and Alan would be very proud of the kind words we’ve heard from so many of you.

We aren’t conducting a public funeral but will let you know of any plans for a gathering or remembrance in the future.

If you wish to make a contribution in Alan’s name, please consider either a donation to CLASP (click here) or to the Dr. Martin Luther King, Jr. Endowed Internship Fund at Oberlin College (click here and select the Dr. Martin Luther King, Jr. Endowed Internship Fund, noting the gift is in memory of Alan Houseman.)

 

By Ashley Burnside and Jesse Fairbanks,

In 2025, several provisions in the Tax Cuts and Jobs Act (TCJA) of 2017 are scheduled to expire. This provides an opportunity for lawmakers to reform our tax code so that it serves families with low incomes instead of the wealthiest individuals and corporations. The Center for Law and Social Policy (CLASP) has recommendations that would improve the well-being of families and children with low incomes through the tax code, and have positive benefits for our economy.[⎆1]

Who Benefitted from the TCJA

The TCJA largely benefitted wealthy households and corporations through measures such as reducing the corporate tax rate. These measures not only drove up the deficit but also made our tax code less fair. While the TCJA doubled the size of the Child Tax Credit (CTC) that families can claim per child, it also made the full credit available to families making from $110,000 all the way up to $400,000 in annual income, dramatically expanding eligibility for the full credit to high income families. But families with the lowest earnings cannot claim the full credit because it is not fully refundable. The TCJA also restricted eligibility for children who don’t have Social Security numbers. The 2025 tax package presents an important opportunity to reverse these policy choices to ensure the very wealthy and corporations pay their fair share.

Extending the TCJA Would be Expensive and Leave Less Revenue for Families

The tax code creates revenue for critical infrastructure in our nation. If lawmakers extended the TCJA provisions for ten years, the Department of Treasury estimated this would cost $4.2 trillion. [⎆2] If lawmakers reversed the tax cuts for those with incomes above $400,000 and allowed the business and estate tax cuts to expire on schedule, the total cost would be reduced to $1.8 trillion. The extra $2.4 trillion could be used for worthy investments that would help working families, like implementing a national paid family leave policy, expanding child care for families, and investing in home and community-based services for people with disabilities. Lawmakers should not extend tax breaks for the very wealthy and instead should make investments in the care economy.

Recommendations

CLASP believes that lawmakers should prioritize the following three goals in the 2025 tax package:

  1. Expand tax credits targeted at individuals and families with low incomes, including the CTC, the Earned Income Tax Credit (EITC), and a new temporary Renters Tax Credit.
  2. Make the tax code fairer by asking the very wealthy and corporations to pay their fair share.
  3. Use the tax code to generate more revenue than would be generated if the TCJA simply expired. This revenue should be invested in housing, communities, and infrastructure.

Expanding Tax Credits to Boost Income for Families, Renters, and Workers

Expand the CTC and Allow Access for Mixed-Immigration Status Families

The CTC is an important tool for reducing poverty and investing in children. Congress should expand the CTC and make it accessible to families with little to no earnings by permanently making the credit fully refundable. Under current law, an estimated 18 million kids[⎆3] don’t get the full credit because their families earn too little – and this disproportionately includes Black, Latino, and Indigenous children due to the wage gap, discrimination in the labor market, and other systemic factors.[⎆4]

Congress should also restore CTC eligibility for children with Individual Taxpayer Identification Numbers (ITINs). The TCJA removed access to the credit for an estimated 1 million children with ITINs.[⎆7] Children should receive the CTC regardless of whether they have a Social Security number, as their families contribute billions of dollars in taxes and should be entitled to the same benefits as other tax-paying families.[⎆8]

Expand the EITC for Workers Without Dependent Kids, Young Workers, and Old Workers

The EITC effectively bolsters the wages of workers with low and moderate incomes, but because of how the credit is structured, some workers who don’t live with children are taxed deeper into poverty.[⎆9] Congress should increase the credit for workers without dependent children in the household. Under the American Rescue Plan Act of 2021, the EITC tripled for this population temporarily (the maximum credit increased from about $500 to $1,500) the income cap to qualify for the full credit increased, and the credit phase-in and phase-out rates increased. Congress should include a similar expansion in the 2025 tax bill. Congress should also extend access to the credit for younger workers (ages 19-24, and age 18 for former foster care youth and homeless youth) and for older workers (ages 65 and over) as they did in 2021. This is especially important because young adults are largely excluded from our nation’s anti-poverty programs, and the age demographic faces high poverty rates compared to other age groups.[⎆10] Based on the Supplemental Poverty Measure, young adults ages 18- 24 in 2022 had a poverty rate of 17.7 percent, and 22.5 percent for young people of color.[⎆11]

Create a Temporary Renter’s Tax Credit to Help People with Low Incomes Afford Housing

low wages have combined with high housing costs to make renting the biggest expense many people face. About 75 percent of renters with very low incomes, or 8 million households, spend over 50 percent of their incomes on housing and utilities.[⎆12] Cost-burdened renters earning less than $30,000 are left with an average of $170 a month for all other expenses.[⎆13] High housing costs put a dire strain on renters’ budgets, forcing millions of parents to decide between feeding their children, keeping the electricity on, or paying rent.

Despite millions of people struggling to afford housing, there is no reliable program providing rent relief to all who need it. Housing Choice Vouchers (HCVs) fail to reach most eligible renters because of severe underfunding—the program assists just a quarter of eligible people.[⎆14] Additionally, HCVs are challenging to use because they depend on the private rental market to provide housing.

Landlords can choose not to participate in the program in most places, resulting in 40 percent of people who are lucky enough to get a voucher losing it before they find a place to rent.[⎆15]

Every day that we wait for the government to invest in affordable housing results in another eviction, another tent on the street, or another parent foregoing dinner so their child can eat. Congress must establish a temporary, refundable renter’s tax credit for people with very low incomes. The credit could further target a population at great risk of eviction, such as single parents. Establishing a targeted renter’s tax credit will provide relief to people in desperate need of financial assistance until the government produces adequate affordable housing.

Make the Tax Code Fairer by Asking the Wealthy and Corporations to Pay Their Fair Share

Increasing access to credits that can help families meet their basic needs and using revenue to invest in our future will help grow the U.S. economy and ensure that more people are able to thrive instead of just a wealthy few.

Please reach out to ✉Ashley Burnside or ✉Jesse Fairbanks with any questions about this fact sheet.

Sources: Download publication to view full sources and citations.

This statement can be attributed to Cemeré James, interim executive director of the Center for Law and Social Policy (CLASP) 

Washington, D.C., February 26, 2025 – The hollowing out of the federal workforce by the Trump Administration through mass layoffs is an underhanded strategy to dismantle countless programs that support children, families, people with low incomes, communities of color, and other underserved populations. These actions will also deepen the immense harm created by the administration’s elimination of diversity, equity, inclusion, and accessibility programs—and make it more difficult for families to access the supports they need.

The cuts to jobs across federal agencies—from the Administration for Children and Families and the Department of Education to the Department of Justice and Department of Housing and Urban Development—are said to be done in the name of cost savings and efficiency. But these cuts are causing chaos, disruption, and inefficiencies. They are directly and immediately impacting the lives and families of the employees who have been laid off but also harming children and families across the country. We are only seeing the beginning of the layoffs’ consequences. These cuts are ultimately efforts to limit access to important programs like child care and housing that support people on a path to economic security.

CLASP is concerned that these federal layoffs will decimate the many programs that support people with low incomes and communities of color, ultimately causing negative effects on our nation’s overall economy. While we are already seeing some of the damage, it’s clear that the long-term consequences will be even more significant and could affect generations to come. That’s why we urge everyone who cares about the well-being of individuals and their families, as well as the nation’s economic health, to demand that members of Congress use their authority to stop the decimation of the programs they established and funded.