Even though the official poverty rate also increased, a precautious measure that accounts for stimulus payments found that poverty fell while incomes rose.
According to the Census Bureau's supplemental poverty measure, the stimulus payments, in particular, boosted incomes by 4% and lifted more than 11 million families above the poverty line, for a 2.6 percentage point and decrease in the poverty rate to 9.1%.
It wasn't the first time Congress sent out stimulus payments, but it was the first time lawmakers sent payment checks to households that had no incomes at all. The act of sending payment checks was effective at pushing families above the poverty line.
Congress followed the CARES Act payments with a round of $600 checks in December and then a $1,400 payment check earlier this year.
The payments proved popular, and Democrats set up recurring monthly checks of as much as $300 per child for most households this year.
According to both the supplemental and official poverty measures, children had higher poverty rates than adults or seniors in 2020,
Experts have said the monthly child payments would likely reduce child poverty substantially.
