The Data / Economics

Economics

Economics evaluates the financial conditions affecting families raising children. It includes measures related to household income, poverty, housing affordability, food security, tax policy, and the broader economic pressures facing working households.

Together, these components assess whether a state’s economic environment provides families with sufficient financial stability to meet basic needs and sustain childrearing over time.

100 of 500 points

Components

How this condition is scored

Child Tax Credit Subscore – Ages Covered Score

Policy

The number of years during which a child is eligible for a state’s Child Tax Credit. The measure reflects the duration of support provided through a state’s Child Tax Credit framework. Programs that extend eligibility across more years of childhood provide longer-term financial support to families raising children.

Child Tax Credit Subscore – Income Limit

Policy

The income eligibility threshold for a state’s Child Tax Credit. Higher thresholds indicate broader eligibility across income groups, while lower limits restrict the credit to a narrower portion of families.

  • States receive higher scores when the credit remains available to families at higher income levels.
  • States that phase out eligibility at lower income thresholds receive lower scores.

Child Tax Credit Subscore – Maximum Credit

Policy

The maximum per-child value of a state’s Child Tax Credit. Larger credits represent greater potential household tax relief for families raising children.

Child Tax Credit Subscore – Refundable

Policy

Whether a state’s Child Tax Credit is refundable. Refundability affects whether lower-income households can fully benefit from the credit. Refundable credits allow families with little or no tax liability to still receive the financial value of the program.

ALICE Score

Factor

The share of households within a state that fall below the ALICE Threshold. The ALICE framework identifies households that are either below the Federal Poverty Level or are classified as ALICE (Asset Limited, Income Constrained, Employed). These households earn above the poverty line but still lack sufficient income to afford basic household necessities. A larger ALICE share means more families are living on a financial knife edge, where small shocks like a car repair or medical bill can destabilize housing, childcare, and overall family stability.

ALICE Budget Score

Factor

The share of households within a state whose income falls below the ALICE Household Survival Budget. The ALICE Survival Budget estimates the minimum income required for a household to afford essential expenses such as housing, childcare, food, transportation, and healthcare within a given state. When more households cannot cover basic monthly costs, family formation and childrearing become harder to sustain, and day-to-day tradeoffs (rent vs. childcare vs. healthcare) become more common.

Food Insecurity

Factor

The share of households within a state experiencing food insecurity. Reliable access to sufficient food is a basic condition of household stability. Persistent difficulty obtaining food can signal broader financial strain affecting families and children.

Source: United States Department of Agriculture (USDA)

Housing – Cost Burden

Factor

The share of households within a state that spend more than 30 percent of household income on housing and related costs. When housing consumes a large share of household income, families have fewer resources available for other essential needs such as childcare, food, transportation, and healthcare.

Source: US Department of Housing and Urban Development (HUD) Office of Policy Development & Research (PD&R)

Median Household Income

Factor

The median household income within a state. Household income shapes the financial capacity of families to meet basic needs such as housing, childcare, healthcare, and education.

Poverty Rate – Family Overall

Factor

The share of families with incomes below the federal poverty line. Higher levels of family poverty can place sustained financial pressure on households, affecting their ability to maintain stable housing, childcare, and other basic necessities.

Source: US Census American Community Survey (ACS)

Poverty Rate – Single Mother

Factor

The share of households headed by a single mother whose incomes fall below the federal poverty line. Single-parent households often rely on a single income while meeting the full costs of housing, childcare, and daily living expenses, making them particularly sensitive to broader economic conditions.

Source: US Census American Community Survey (ACS)

Poverty Rate – Single Father

Factor

The share of households headed by a single father whose incomes fall below the federal poverty line. Single-father households rely on a single income while managing the costs of housing, childcare, and daily household needs, making them sensitive to changes in local economic conditions.

Transportation Barriers

Factor

The share of adults who report lacking reliable transportation during the past 12 months. Reliable transportation plays a central role in connecting households to employment, healthcare, education, and daily necessities.