In this Texas community 60 percent of people live under the poverty line. The current recession may push more children into poverty. Photo: Jakob Vølver (flickr)

The current recession could land another three million children in poverty — with disastrous long-term consequences, according to a new report by the children's advocacy organization First Focus.

Children raised in poverty tend to have lower-than-average lifetime earnings and are much more likely than their unimpoverished peers to remain poor. First Focus cites research that says on average, children who spend more than half their life in poverty end up making 39 percent less than the median income.

Says Bruce Lesley, president of First Focus:

"If we do not act now, the current economic climate will lead to millions more children living in poverty, which will cause a severe economic loss for our nation's future. When children enter poverty at a young age, their ability to achieve the American dream is diminished. They are 13 times more likely to remain in poverty for several years after the recession ends, leading to adverse effects on lifetime earnings as well health outcomes."

The ultimate cost of those additional impoverished children to the U.S. economy? More than $1.7 trillion, according to the group.

As the number of unemployed continues to rise, state funding to pay this growing population is shrinking — fast, the New York Times reports.

Here’s how funding for unemployment benefits work: States collect unemployment taxes from employers. The tax rate varies depending on the state, and is paid per employee. These funds are deposited into a pool that's used to pay out unemployment benefits.

With more people out of work, there is less money being contributed to this pool — and for some states, this is causing a big problem. Michigan and Indiana have already plowed through their unemployment funds and are now having to borrow money from the federal government in order to cover unemployment benefits. Another 30 states are at risk of having to do the same, according to the National Association of State Workforce Agencies.

Federal borrowing will only delay the inevitable — and possibly make it even more painful. Loans not paid back within the federal government's fiscal year, according to the Times piece, are subject to an interest rate of 4.7 percent.