On February 3, End Child Poverty California was proud to stand in Sacramento with the Prosper California Coalition and California legislators for Advocacy Day at the Capitol. Together, we called on state leaders to expand the Young Child Tax Credit, protect free tax preparation services, and strengthen the tax credits that are proven to fight poverty.

The day also marked the kickoff of CalEITC Week ; a celebration of one of California’s most powerful anti-poverty tools.

Fighting for Families in a Tough Economy

Working families and small businesses across California are facing rising costs, while federal cuts threaten food assistance, childcare, and healthcare. At a time when families are being squeezed from every direction, we need solutions that put money directly back into people’s pockets.

That’s exactly what California’s refundable tax credits do.

Expanding the Young Child Tax Credit: AB 1690

No child should grow up in poverty.

That’s why Assembly Bill 1690 (AB 1690) was introduced by Assemblymember Patrick Ahrens in partnership with Assemblymember Mark González and the Prosper California Coalition to expand the California Young Child Tax Credit (YCTC).

AB 1690 would:

• Expand the YCTC to reach nearly 1 million more children
• Put up to $1,176 back into the hands of working families
• Increase the reach and impact of one of our state’s most effective poverty-fighting tools

Dozens of organizations came together around one shared goal: protect and build on proven tax credits that put money back into families’ pockets.

Tax Credits Work — And the Data Proves It

Tax credits may not be flashy. But they work.

We’re not talking about corporate tax breaks. We’re talking about using the tax code to uplift families.

California’s Earned Income Tax Credit (CalEITC), Young Child Tax Credit, and Foster Youth Tax Credit are delivering real results:

• 3.5 million Californians and families receive hard-earned cash back through tax refunds and credits.
• $1.4 billion in cash payments have gone directly into the pockets of working families.
• $2.8 billion is reinvested into local economies because families spend that money on essentials like rent, groceries, childcare, and transportation.

The Earned Income Tax Credit is one of the most effective anti-poverty tools in the country. Research consistently shows it helps families cover basic needs, improves child and maternal health, strengthens educational outcomes, and boosts local economies.

California has gone even further by expanding access and centering equity ensuring that low-wage workers, immigrant families, and foster youth can benefit.

Free Tax Prep = Access to Opportunity

Here’s the key: families only receive these credits if they file their taxes.

That’s why protecting and expanding VITA free tax preparation sites is critical. These clinics are staffed by IRS-certified volunteers and help families claim every dollar they’ve earned. Each year, they help Californians receive millions in refunds and credits.

During CalEITC Week, we made it clear: access matters. Free, trusted tax preparation ensures these life-changing credits actually reach the people they’re designed to support.

Supporting Women Entrepreneurs & Small Businesses

Bianca Blomquist, California Director for Small Business Majority, highlighted how these credits are game-changers for small business owners; especially women entrepreneurs.

For many women, refundable tax credits provide the stability needed to:

• Start a new business
• Go full-time with a growing venture
• Leave a less flexible job
• Balance caregiving and entrepreneurship

These credits recognize the essential role women play in both the caregiving economy and the small business community. They don’t just reduce financial stress, they create opportunity.

One Shared Goal: End Child Poverty

Advocacy Day was a powerful reminder that when organizations, lawmakers, and community partners come together, we can drive meaningful change.

We are deeply grateful to all of our Prosper California Coalition partners for kicking off CalEITC Week at the Capitol and standing united behind policies that work.

Because tax credits may not be glamorous, but they are transformative.

And if we’re serious about ending child poverty in California, we must protect them, expand them, and make sure every eligible family can access them.

Let’s keep building a California where every child has the opportunity to thrive.