When I was still living in Vietnam, I often heard people say that in America, “if you have a child, the government will raise the child for you.” After moving to the U.S., I realized the reality was far more complicated — and, in many ways, much more sobering. Once I started working, I often heard friends and coworkers talk about the financial pressure of raising young children here.
The costs that come up again and again are daycare, hourly nannies, medical bills, and sometimes the difficult choice of giving up one income so that one parent can stay home with the child — especially when there is no family nearby to help.
During the years I worked on budget planning for the New York State government, I had the chance to learn quite a bit about programs that support children and families. Even so, I used to assume that most of these benefits were only for families with very low incomes, and that my own family probably would not qualify.
Because of that assumption, even though I knew these programs existed, I still missed several benefits after having a child — benefits that could have saved my family thousands of dollars a year if I had looked into them sooner.
The U.S. has a remarkably broad system of public policies, and it is designed to serve many different groups. Whether you are a permanent resident or a citizen, and whether your income is low, middle, or relatively high, there may still be certain forms of support available to you and your family.
In this article, I want to share some of the most common child and family support programs in the U.S. — especially the ones that many families, including immigrant families, may not know much about at first.
Child Tax Credit (CTC)
Among all federal child benefits, the Child Tax Credit (CTC) is probably the program most families hear about first.
If you qualify, the credit can reduce the amount of federal tax you owe when you file your annual tax return. In some cases, it may also increase your federal tax refund.
This benefit is meant to help families offset part of the cost of raising children. It is available to families with income up to $400,000 per year, although the benefit gradually phases out once household income goes above that level.
One thing that is helpful to know is that the Child Tax Credit is not only useful for reducing taxes owed. Some lower-income and lower-middle-income families may still receive money back through the Additional Child Tax Credit, even if they owe very little — or nothing — in federal income tax.
Child and Dependent Care Tax Credit (CDCTC)
This credit is easy to confuse with the Child Tax Credit, but they are not the same. The Child Tax Credit is mainly based on having a qualifying child. The Child and Dependent Care Credit, on the other hand, is tied to child care expenses that allow parents to work or look for work.
If you pay for child care so that you can work or study, this credit may be worth looking into. It can make a real difference, especially because child care in the U.S. is extremely expensive — often ranging from $15,000 to $30,000 a year or more in major cities.
Eligible expenses may include daycare, preschool, after-school programs, and some other forms of child care.
For married couples filing jointly, the amount of child care expenses that can be counted is limited by the earned income of the spouse who earns less. For example, if you have two children, pay $15,000 in child care expenses, and the lower-earning spouse earns more than $6,000, you may use the maximum of $6,000 to calculate the credit.
But if the lower-earning spouse makes only $4,000, then generally only $4,000 can be used to calculate the credit. Because this credit is intended to help pay for care so that a parent can work, families usually do not qualify if there is no earned income for the year.
Dependent Care Flexible Spending Account (Dependent Care FSA)
A Dependent Care FSA is usually offered through an employer. It is designed for employees who need care for a young child or another dependent in order to work.
With a Dependent Care FSA, you can set aside pre-tax money to pay for expenses such as daycare, nanny care, or after-school programs.
Because the money goes in before taxes, this benefit can lower your taxable income and save your family a meaningful amount each year.
For example, if you contribute $5,000 — the annual maximum — to a Dependent Care FSA, and your family’s combined tax rate, including federal, state, FICA, and other taxes, is 24.5%, you could save about $1,200 a year on child care-related expenses.
Similar to the CDCTC, both spouses generally need to have earned income in order to use a Dependent Care FSA. The benefit is meant to help a parent, especially the lower-earning spouse, start or continue working.
Families can use both a Dependent Care FSA and the Child and Dependent Care Tax Credit, but the same child care expense cannot be counted twice. For a family with one child, using the full Dependent Care FSA amount often means there may not be any eligible expenses left for the tax credit.
One important thing to remember is that a Dependent Care FSA usually follows the “use it or lose it” rule. That means you need to estimate your annual child care costs carefully before deciding how much to contribute. Some employers allow a short grace period, but the details depend on each employer’s benefit plan.
Child Care Assistance Program (CCAP)
CCAP is a child care assistance program funded jointly by the federal and state governments. It is administered by states and usually carried out through counties or local social services agencies.
Depending on where you live, the local office may be called the County Department of Social Services or the Local Department of Social Services (LDSS).
These agencies handle applications, verify income, determine eligibility, approve cases, and process annual renewals.
The name of the program can vary by state — CCAP, Child Care Assistance Program, Child Care Subsidy, and so on — but the basic purpose is the same: to help eligible families pay part, or sometimes most, of their child care costs so parents can work, study, or attend job training.
Medicaid and CHIP
Health care for children in the U.S. can be extremely expensive without insurance. If your family meets the income requirements, your child may be able to enroll in Medicaid or the Children’s Health Insurance Program (CHIP).
Both programs are funded by the federal and state governments but administered at the state level. Because of that, eligibility rules and specific benefits can differ from one state to another.
Medicaid is the largest public health insurance program for low-income Americans, including millions of children. For children, Medicaid often covers many health services, such as:
· Regular checkups
· Vaccinations
· Specialist visits
· Prescription medications
· Lab tests
· Mental health care
· Inpatient and outpatient treatment
· Dental care
· Vision care
CHIP was created to fill the gap between Medicaid and private insurance. For example, if your family’s income is too high for Medicaid but still not high enough to comfortably afford private insurance, your child may qualify for CHIP.
Compared with commercial insurance, CHIP usually has much lower copays or premiums.
Many states allow children who are permanent residents or who have lawful immigration status to enroll in Medicaid or CHIP. Some states, including New York, even extend coverage to children regardless of immigration status.
Because CHIP is designed and administered by each state, the program may have a different name depending on where you live. Income limits and benefits may also vary.
Below are several examples of CHIP programs from larger states.
New York: Child Health Plus (CHPlus)
California: Medi-Cal
Florida: Florida KidCare
Massachusetts: MassHealth
New Jersey: NJ FamilyCare
To apply, you can usually start through the Health Insurance Marketplace, your state Medicaid agency, a local social services office, or a patient assistance program at certain hospitals or community health centers.
If your family qualifies, your application may be transferred directly to Medicaid or CHIP without requiring you to start the process all over again.
WIC Program
WIC stands for the Special Supplemental Nutrition Program for Women, Infants, and Children.
WIC is a federal program funded by the U.S. Department of Agriculture (USDA), but it is run by the states. As a result, the application process and some program details may look a little different depending on where you live.
The goal of WIC is to improve nutrition and health for pregnant women, postpartum women, infants, and children under age five.
To qualify, families must fall into one of these groups and also meet the program’s income requirements.
WIC provides specific foods based on nutritional needs, such as milk, eggs, whole grains, fruits and vegetables, peanut butter, cheese, yogurt, infant cereal, and, in some cases, infant formula.
WIC also offers nutrition counseling, breastfeeding support, and referrals to health services when needed.
Today, most states use electronic WIC cards, often called eWIC cards. Benefits are loaded onto the card each month, and families can use it to buy approved foods at participating grocery stores.
Head Start and Early Head Start
Unlike CCAP, which focuses on helping parents pay for child care so they can work, Head Start focuses more broadly on a child’s development before kindergarten.
The program was designed as a more comprehensive form of support for children and families. In addition to early education, children may receive health, nutrition, and developmental screening services. Parents may also receive parenting support and connections to community resources.
Early Head Start serves pregnant women and children under age three. Head Start serves children ages three to five before they enter kindergarten.
In a way, these programs fit together: WIC supports nutrition, Medicaid supports health care, and Head Start supports early learning and development. Together, these programs reflect how the United States invests in children from the earliest stages of life.
Free or Reduced-Price School Meals Program
In many public schools, children from eligible families can receive free or reduced-price meals. This program has supported millions of students across the United States for decades, and for many families, it quietly makes everyday life a little easier.
Higher Education Support
Beyond programs for low- and middle-income families, the U.S. also has policies that encourage families to save for their children’s education early. One of the most common examples is the 529 Plan, a savings and investment account designed to help families prepare for future education expenses.
Under current rules, money in a 529 Plan can be used for qualified education expenses, including tuition for college, community college, vocational school, and in some cases K–12 education. If certain requirements are met, part of the remaining balance may also be transferred to the beneficiary’s Roth IRA.
Conclusion
Raising children in the United States is still expensive, and the main responsibility still falls on the family. But one thing the U.S. system does fairly well is create support programs for mothers and children at different stages — from pregnancy and birth to health care, early childhood education, and eventually college.
During my time working on budget planning for the New York State government, I heard many different opinions about child support programs, especially when it came to children in immigrant families. Some people see these programs as a necessary investment in the future of society. Others worry about how taxpayer dollars are being used.
In my view, these programs are more than financial assistance. They represent a long-term investment in children’s health, education, and future productivity. There are still many debates about public spending and who should qualify for benefits, but it is hard to deny that these programs have helped millions of children gain better access to health care, nutrition, and education during their early years.
For newcomers to the United States, eligibility can vary depending on immigration status and each state’s rules. If you are unsure where to begin, you can contact the program administrator or an immigrant support office, such as an Office of New Americans, if one exists in your state or local area.
Below is a simple summary of the programs by stage or purpose.
Pregnancy: WIC, Early Head Start
Ages 0–5: Medicaid, CHIP, Head Start, CCAP
School age: School Meals
College: 529 Plan
Tax benefits: CTC, CDCTC, Dependent Care FSA
You can look up child support programs by state from here.