Key Takeaways
- The latest U.S. Census data shows that about 10.6% of Americans live below the poverty line, representing roughly 35.9 million people.
- The poverty line is based on the Official Poverty Measure (OPM), while the Supplemental Poverty Measure (SPM) offers a more detailed view by including taxes, benefits, and living costs.
- Children, single-parent households, and several racial and ethnic minority groups experience poverty at significantly higher rates than the national average.
The large share of Americans experiencing poverty is a clear sign that rising living costs paired with stagnant wages leave more families struggling to afford necessities, widening the economic gap.
When such a substantial portion of the population lives below the poverty line, it places long-term strain on social systems and limits overall economic growth. What may seem like an isolated, individual problem quickly becomes a national issue with broad consequences, beyond the significant moral implications.
Health and human services, along with government assistance programs, try to help, but they often fall short because of the systems that guide them, along with the lack of fundamental change needed to reduce poverty rates.
What Does the Federal Poverty Level Mean?
The Federal Poverty level, or FPL, is a measure that indicates the least amount of income a person or family needs to meet their basic needs. It is used to determine eligibility for many federal assistance programs.
When measuring poverty, there are two tools that can be used: the Official Poverty Measure or OPM and the Supplemental Poverty Measure (SPM). Continue reading to learn more about each:
Official Poverty Measure
OPM offers a straightforward view of household finances. OPM is based on pre-tax cash income and compares a household’s earnings to a fixed set of income thresholds that vary by family size.
Supplemental Poverty Measure
SPM uses post-tax resources, accounting for tax credits, government assistance, and necessary expenses like childcare, giving a more comprehensive picture of economic hardship. Because of these differences, the SPM often provides a more accurate reflection of the financial realities families face today.
What Are the Current Poverty Threshold Numbers in The U.S?
Poverty threshold numbers will vary based on household size. For example, according to the U.S.Census Bureau, for an individual, the current poverty threshold number is $15,940, for two people, it’s 20,220, and for a family of four, is 32,130.
Below are additional poverty threshold ranges:
| Family Size | No Children | With Children (Range 1-8+) |
| 1 person | $15,045–16,320 | — |
| 2 people | $18,961–21,006 | $21,540–21,621 |
| 3 people | $24,537 | $25,249–25,273 |
| 4 people | $31,812–32,355 | $31,922–32,884 |
| 5 people | $36,863–39,019 | $37,436–39,586 |
| 6 people | $41,131–44,879 | $41,915–45,057 |
| 7 people | $45,100–51,638 | $46,948–51,961 |
| 8 people | $51,177–57,753 | $53,337–58,263 |
| 9+ people | $60,645–69,473 | $63,075–69,810 |
Which Demographics Experiencing Poverty Are Most Affected?
People of color, children, women, and the elderly are most impacted. Here is a breakdown of demographics for Americans, you can quickly look through:
- The races experiencing poverty the most are: Native Americans (24.2%), Black (20.6%), Hispanic (16.6%), Asian (10.0%), and lastly White (9.5%)
- Children experience the highest poverty rates of any age group, with millions living in households struggling to meet basic needs. Food insecurity is huge for children in the United States. Under the Supplemental Poverty Measure (SPM), child poverty increased sharply after the expiration of pandemic-era support programs.
- Elderly adults face higher poverty risk under the SPM, which accounts for out-of-pocket medical costs, often revealing deeper hardship than the Official Poverty Measure (OPM) alone.
- Native American, Black, and Hispanic Americans experience notably higher poverty rates compared to White and Asian Americans.
- Women, single mothers, and households with children are disproportionately affected, as childcare costs, wage gaps, and limited social support contribute to higher poverty exposure.
- Working-age adults continue to face economic strain from rising living costs and stagnant wages, especially in single-income or low-wage households.
What Are The Causes of Deep Poverty?
Deep poverty is caused by several factors, with key drivers including unemployment, wages, housing costs, education, and policy. Here is more information on these factors:
- Unemployment — In some circumstances, people may find themselves unemployed and unable to find a new job. This can happen to anyone, and with a quarter of Americans not having any savings, and around 60% living paycheck to paycheck, losing income even temporarily can quickly lead to a cycle of economic instability.
- Wages — The federal minimum wage is currently $7.25 an hour, a rate that has remained unchanged since 2009. Although many states set their own, higher minimum wages, they still fall far short of what it actually costs to meet basic living expenses in today’s economy.
- Housing Costs — U.S. housing costs have surged far faster than incomes, creating a severe affordability crisis. Today, more than 75% of homes are out of reach for the typical household, often requiring incomes well above the national average, especially in major cities. Years of low housing supply and rapidly rising prices have driven this gap, even as mortgage rates have begun to moderate.
- Education — College education costs have only increased over the past decades, making it harder for the average person and those from low-income households to afford higher education, such as college or even a high school education. Higher education can lead to higher-paying jobs and improve the quality of life. Without this education, many people may be stuck in a cycle of poverty and financial hardship.
How Do Low Incomes Affect Policy and Benefits?
Low incomes directly impact policy and benefits by creating the need for them. These low incomes also become a guide for the “infrastructure” of these human services and government programs, including caps and timing, which can actually be detrimental for those using these safety nets. For example, benefits including SNAP, tax credits, Medicaid, and housing aid are tied to income thresholds, which creates financial eligibility cliffs where earning slightly more can reduce or eliminate benefits.
More broadly, poverty policy and anti-poverty programs attempt to fill the gap left by low wages and rising living costs, but many remain underfunded or outdated. Income support tools, such as the following, have been shown to reduce hardship for low-income families:
- Refundable tax credits
- Child allowances
- Food assistance (i.e., SNAP and the national school lunch program)
- Housing subsidies
However, these support tools often face the friction of inconsistent funding, administrative burdens, and eligibility rules that exclude many who need help, impacting their effectiveness.
FAQ
What is the current poverty rate in the United States?
According to the OPM, the current poverty rate is 10.6%. Under the SPM, the rate is 12.9%. That is about 35.9 million people living in poverty in the United States.
How is the poverty line determined in America?
In the U.S., the poverty line is calculated by the Census Bureau using income thresholds that vary by family size and composition, originally based on the cost of a minimum food diet multiplied by three. The Census Bureau updates these thresholds annually for inflation and then measures how many households fall below them using national survey data.
Which groups are most affected by poverty in the U.S.?
People of color, women, single-parent households, children, and the elderly are most affected by poverty in the U.S.
What is the difference between the Official and Supplemental Poverty Measures?
The Official Poverty Measure (OPM) is based solely on pre-tax cash income and uses fixed national thresholds that do not reflect modern expenses. In contrast, the Supplemental Poverty Measure (SPM) accounts for taxes, government assistance, and necessary costs like childcare and housing, offering a more accurate picture of economic hardship.
References:
- Poverty by Race/Ethnicity | KFF.org
- Poverty in the United States 2024 | US Census
- The Number of Households Living Paycheck to Paycheck Has Risen | USA Today
- How Much Money Do Americans Have in Their Bank Accounts in 2025? | Nasdaq
- America’s Deepening Affordability Crisis Summed Up in 5 Charts | CBS News
