Early Childhood Poverty: A Lasting Impact on Babies’ Health and Development

Key Takeaways

  • In 2025, nearly 1 in 7 infants and toddlers in the United States – approximately 1.5 million or 13.6% – were living in poverty.  
  • Almost half of infants and toddlers – 3.9 million or 49.1% – were living in poverty or in low-income households, with resources below 200% of the Supplemental Poverty Measure threshold. 
  • Black (24.7%), Hispanic (17.6%) and Indigenous (15%) babies experienced higher rates of poverty than other groups. 

Babies continue to experience high rates of poverty, creating barriers to a strong start in life.

During the first years of life, children’s brains are rapidly developing, making them particularly vulnerable to the harmful effects of poverty on lifelong health, learning and development. The effects of early childhood poverty are wide-reaching, including reduced access to nutritious foods and other basic needs that support healthy growth and development, as well as chronic stress that disrupts early brain development.  

These effects can persist well into adulthood, impacting long-term physical and mental health, school readiness, educational attainment and even later earnings and the need for public benefits.  

In 2025, nearly 1 in 7 infants and toddlers (approximately 1.5 million or 13.6% of all children under age 3) were living in poverty and an additional 35.5% (approximately 2.4 million) were living in families with low incomes between 100% and 199% of the Supplemental Poverty Measure (SPM) threshold. Nationwide, 3.4% of babies and toddlers (370 thousand) were living in deep poverty (defined as below 50% of the SPM threshold). Altogether, 49.1% of infants and toddlers – nearly 1 in 2 – were living in poverty or in low-income families, representing approximately 3.9 million babies across the United States. 

By the Numbers

Policy choices have a big impact on child poverty.

Supports like the expanded, fully refundable child tax credit (CTC), Supplemental Nutrition Assistance Program (SNAP) and Medicaid have historically reduced child poverty and economic hardship while decisions to reduce access to these essential programs can leave families with fewer resources to meet their children’s needs. 

In July 2025, H.R. 1, the “One Big Beautiful Bill Act, was signed into law significantly reducing funding for public benefit programs, including SNAP and Medicaid. While many of these changes were not fully implemented in 2025, these historic cuts are likely to increase poverty, food insecurity and health disparities. The poverty estimates reported in this brief provide an important baseline for understanding families’ economic conditions before the adoption of H.R. 1.  

Some changes have already begun to affect families. SNAP participation and Medicaid coverage have already declined substantially since the start of 2025. As many more changes take effect over the coming months and years, their impacts on families’ resources and economic hardship will become increasingly visible in poverty and other measures of child well-being. 

Recent poverty data underscores how important public benefits are for buffering children from poverty, and how reductions may have significant consequences for children’s economic security. Among children under age 18, SNAP alone kept an estimated 1.2 million children out of poverty, while the refundable CTC kept an estimated 1.3 million out of poverty. At the same time, medical expenses pushed an estimated 1.4 million children into poverty, highlighting the economic consequences of health care costs even before the effects of the Medicaid changes enacted through H.R. 1 were fully realized. 

Infant and toddler poverty remains well above 2021’s historic low, when American Rescue Plan Act-era CTC expansions and investments in other public benefits helped protect millions of children from poverty. In 2025, infant and toddler poverty was 2.5 times higher than the historic low in 2021. 

Center on Budget and Policy Priorities. (Last updated September 24, 2026), SNAP Tracker: People Are Losing Food Assistance as the Harmful 2025 Republican Reconciliation Law Is Implemented. 

Alker, J. (2026, May 28). Two Million Fewer Children are Enrolled in Medicaid Since Trump Took Office. Georgetown Center for Children and Families. 

Across the country, babies of color experience a disproportionately high rate of poverty.

In 2025, 24.7% of Black infants and toddlers (1 in 4), 17.6% of Hispanic infants and toddlers (nearly 1 in 5), and 15% of American Indian / Alaska Native (AIAN) infants and toddlers (over 1 in 7) were living in poverty. At the same time, 8.2% of white infants and toddlers (approximately 1 in 12) and 10.7% of Asian infants and toddlers (close to 1 in 10) were living in poverty in 2025.3 Notably, disparities in child poverty by race and ethnicity narrowed slightly between 2024 and 2025, although substantial disparities persisted. 

Bijou, C. and Shrider, E.A. (2026). Poverty in the United States: 2025, Table 6. U.S. Census Bureau. 

We’re talking about half of families now that are saying, ‘I can’t afford child care,’ or ‘I’m skipping meals in order to feed my kids. And that should be of concern, regardless of your political affiliation or where you live.”

Every baby deserves access to the resources they need to thrive.

The 2025 Census data show nearly half of babies are living in poverty or in low-income households during their most formative years, while looming cuts to key federal assistance programs are predicted to push even more children into economic hardship. Policymakers can help strengthen families’ economic security by protecting and expanding access to programs that help families meet basic needs. As changes to federal assistance programs take effect, policymakers and researchers must closely monitor their effects on families with young children and use that evidence to strengthen policies and programs to ensure that every baby has the resources and support needed for a strong start in life.

Resources for Professionals

Discover evidence-based resources to help you protect programs that support young children and families facing economic hardship.

The ZERO TO THREE Baby Book: Resources and State Examples to Guide Policy Change

This dynamic resource is updated regularly with information about policy implications and implementation across the country.

TANF at 25: Poverty Remains High Among the Nation’s Babies, But Few are Assisted

Though assistance can help families bridge the gap, few families who could benefit from the Temporary Assistance for Needy Families (TANF) program’s basic assistance actually receive it.

 

Poverty Matters for Children’s Well-being, but Good Policy Can Help

While research has historically focused on family environments when identifying pathways by which income affects child development, a variety of powerful structural factors can also increase the risk of family poverty.

 

Cash Assistance and Tax Credits: Critical Supports for Infants, Toddlers and Families

Families in poverty with infants and toddlers should get cash assistance and refundable tax credits to supplement their earnings.

Child Tax Credit Expansion is a Win for Babies’ Early Development

For infants and toddlers living in poverty, the Child Tax Credit will lead to immediate and lifelong benefits. Read our latest fact sheet to learn more.

Mental health effects of poverty, hunger, and homelessness on children and teens

Psychological research shows that living in poverty is associated with differences in structural and functional brain development in children and adolescents.

Poverty measures explained

The Supplemental Poverty Measure (SPM) and Official Poverty Measure (OPM) are two different methods the Census Bureau uses to measure families’ economic well-being. The OPM, developed in the 1960s, calculates poverty primarily based on pretax cash income and a set of income thresholds that vary by family size and composition.

The SPM, first used by the Census Bureau in 2009, provides a broader view of economic well-being by accounting for families’ resources beyond income, including tax credits and noncash benefits, as well as necessary expenses such as health care and child care. The SPM also adjusts poverty estimates by geographic differences in cost of living. Due to these methodological differences, the SPM provides insights into the impact of noncash benefits and household expenses – as well as policy choices – on families’ experiences of poverty.

How You Can Stand Up for Economic Security

Everyone has a role in protecting programs that give babies a strong start. Whether you’re a parent, caregiver, educator, pediatrician, advocate, or community leader, you can take action.

Personal stories make a difference. Whether your family has benefited from programs that strengthen economic security or you work alongside families who have, share what these supports have meant for a child’s growth, a parent’s stability, or a community’s well-being. Record a video or write a short post we can share to lift your voice in our advocacy efforts.

Make it clear: cutting family support programs means cutting off opportunity—for parents striving to make ends meet and for babies counting on a strong start. Contact your members of Congress and local representatives. You don’t need polished talking points—just speak from the heart about why these programs matter.

Share facts and resources about family economic security with your network—friends, family, coworkers, and clients. Help others understand how access to child care, nutrition assistance, paid leave, and income supports helps families thrive. Use social media, conversations, and community events to spread the message.

If you’re a professional, help families connect with programs that build economic stability. If you’re a parent or caregiver, share what’s helped you navigate challenges and support others in doing the same. Advocacy happens not just in hearing rooms, but in break rooms, waiting rooms, and living rooms.

Latest news and updates

Current events and policy changes can have profound effects on families.

Our federal policy team is deeply involved in shaping decisions that impact the well-being of babies and their families. Stay up-to-date on our latest issues.

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Economic security is one of the strongest predictors of long term well-being.

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