Indiana and Ohio could become the first Republican-led states to create a refundable child tax credit for residents. Refundable child tax credits, which put money back into the pockets of families with children, have a proven track record of lifting people out of poverty and putting kids on the path to a brighter future. Kevin Hardy of Stateline explains how these credits are gaining traction in GOP states:

In Indiana, lawmakers want to include parents who recently adopted a child or those with children under the age of 1. Even those with no income could qualify for the refundable credit. As proposed, eligibility would top out for families with an adjusted gross income that’s 720% of the federal poverty level — about $191,000 for a family of three. … Aside from helping thousands of families cover escalating costs of living, [state Sen. Greg] Walker said it also would provide relief for lower-income families who pay a higher proportion of their earnings in taxes because of the state’s flat income tax rate.

Hardy reports on how child tax credits have evolved from a liberal policy into a bipartisan priority:

In announcing his proposal, Ohio’s governor said there was bipartisan agreement across the country on the merit of investing in working families. “This is not a liberal or a conservative proposal,” [Gov. Mike] DeWine said in a promotional video in early February. “ … This will be a significant amount of money and it will help these families move forward with their lives however they want to live those lives.”

Louisiana, like Indiana, now has a flat income tax rate. The state also has the highest-in-the nation sales tax rate. These two policies require people with low-and moderate-incomes to pay higher state and local taxes than the wealthy. A refundable child tax credit in Louisiana would provide relief to these families. 


Pregnancy care is getting worse in Louisiana 

The Louisiana Health Department’s efforts to improve maternal health outcomes are falling short, according to a new report from the Louisiana Legislative Auditor. The Times-Picayune | Baton Rouge Advocate’s Emily Woodruff explains how the quality of pregnancy care has declined despite increased funding:

The audit found that the Louisiana Department of Health spent nearly $400 million on maternal health reform through the Managed Care Incentive Payment program from Feb 2020 to March 2024, but some initiatives were duplicative or lacked measurable outcomes. “A lot of money is being put toward it, but there aren’t a lot of measurable outcomes or new things being created,” said Chris Magee, a data analytics manager at the auditor’s office. … “In essence, LDH paid for the same improvement twice,” the audit said.

Rural maternity care deserts are still prevalent across the state. The audit noted how more than one-third of Louisiana parishes had no OB-GYNs who provide services to Medicaid patients. Woodruff explains why many areas with providers are not providing much-needed care:

In areas with listed providers, nearly one in five had not seen any Medicaid patients in the previous six months. Patient complaints reviewed by the auditors showed transportation was a big issue. … The audit found that Managed Care Organizations, which are responsible for coordinating care for most Medicaid enrollees, did not maintain accurate lists of providers, which is “one of the most basic things” they should do, said Magee. The auditors verified that the list was inaccurate by checking it themselves.

Medicaid cuts would hurt people

A recent analysis by the Congressional Budget Office showed that the GOP cannot reach their goal of cutting $1.5 trillion from the federal budget over the next decade without reducing Medicaid or Medicare benefits. A new report from the Center on Budget and Policy Priorities explains how some proposals to slash Medicaid would force states to cut eligibility, benefits or provider payments: 

Medicaid is the largest shared state-federal program, with nearly two-thirds of overall state expenditures coming from federal dollars. Some Medicaid proposals would reduce federal funding by seeking to shift greater costs onto states, such as by requiring them to pay for a larger share of the cost of Medicaid. Given the sheer scope of federal support that Medicaid provides to states, along with the fact that states’ own revenue collections are showing signs of strain, policymakers at the state and local level are highly unlikely to backfill all the federal funding lost.

Solar program for low-income homes under threat

A state program that installs solar energy panels on low-income homes could be in the crosshairs of President Donald Trump’s effort to slash the federal budget. Louisiana received $156 million from the Biden administration’s Inflation Reduction Act to create the ‘Solar for Y’all’ program. WWNO’s Elise Plunk and Halle Parker report: 

[Gulf States Renewable Energy Industries Association’s Monika] Gerhart said the economic impact of the federal money can multiply by “around three to five times” the amount invested in solar projects at this scale. This means the total value of the economic impact of $156 million in startup money could range anywhere from $468 million to $780 million in Louisiana. … Jesse George, a policy director for the Alliance for Affordable Energy, said development of community solar projects would help lower energy bills in a state where its poorest have some of the highest energy burdens in the country. 

Number of the Day

27.20% – Percentage share of Louisiana families who are able to afford infant care. Affordability is defined as costing 7% or less of income. (Source: Economic Policy Institute)