What is the current poverty rate in the United States? Current estimates on poverty in the U.S.
The official poverty rate is 11.6 percent, based on the U.S. Census Bureau’s estimates for 2021. That year, an estimated 37.9 million Americans lived in poverty according to the official measure. Neither the rate nor the number differed significantly from 2020. According to the supplemental poverty measure, the poverty rate was 7.8 percent.
The official poverty measure was developed in the 1960s in conjunction with President Lyndon Johnson’s War on Poverty. Each September the U.S. Census Bureau releases an update of the national poverty rate for the prior year.
The official measure today is based on data from the Current Population Survey Annual Social and Economic Supplement. The survey is sent to U.S. households, so the poverty estimates do not include those who are homeless. The sample also excludes military personnel who do not live with at least one civilian adult as well as incarcerated adults.
While poverty rates according to the official and supplemental measures fluctuate from year to year, so do incomes relative to the Federal Poverty Level (FPL). According to a CensusBureaureport published in October 2022, 20.03 million people reported deep poverty in 2021, which means a household income below 50 percent of the poverty threshold. These individuals represented an estimated 6.2 percent of all Americans and 48.4 percent of those in poverty.
How high has the poverty rate in the U.S. been historically?
Historically, the official poverty rate in the United States had ranged from a high of 22.4 percent when it was first estimated for 1959 to a low of 11.1 percent in 1973. Since its initial rapid decline after 1964 with the launch of major War on Poverty programs, the poverty rate has fluctuated between around 11 and 15 percent.
Individuals also transition into and out of poverty over time, though many of those who are poor at any given time will spend multiple spells in poverty. Research shows that transitions into or out of poverty often happens after major life events such as marriage, divorce, or sudden changes in income. These transitions also can be associated with larger shifts in unemployment or wages.
What is the difference between the official and supplemental poverty measures?
The official poverty measure triples the inflation-adjusted cost of a minimum food diet and creates thresholds based on family size, composition and the age of the householder. Anyone living in a household with an income below their relative poverty threshold is considered to be in poverty.
The U.S. Department of Health and Human Services develops their Federal Poverty Guideline income thresholds based on the official poverty measure estimates. These income thresholds are used to determine eligibility for federal safety net programs, such as Medicaid or WIC.
Since the 1960s, new poverty measures, including the U.S. Census Bureau’s supplemental measure, provide a more complex understanding of poverty in the United States. The supplemental measure includes basic costs of living that can vary across states. It also includes transfers from safety net programs and in-kind benefits.
The U.S. Census Bureau defines “deep poverty” as living in a
household with a total cash income below 50 percent of its
poverty threshold. According to the Census
Bureau, 20.03 million people lived in deep poverty in
2021. Those in deep poverty represented 6.2 percent of the
total population and 48.4 percent of those in poverty.
Each year, the U.S. Census Bureau counts people in poverty with
two measures. Both the official and supplemental poverty measures
are based on estimates of the level of income needed to cover
basic needs. Those who live in households with earnings below
those incomes are considered to be in poverty.
Poverty thresholds are the income dollar amounts used by the U.S.
Census Bureau solely as a statistical yardstick to determine a
household’s poverty status. They are issued each year in
September and are the basis for determining the national poverty
rate.
In 2012, the U.S. Census Bureau reported that around 46 million
or one in seven residents lived in poverty. However, the
very term “poverty” continues to evoke debates on what it means
to be poor.
This infographic shows the difference in California poverty rates
when calculated with the Official Poverty Measure (OPM) and the
California Poverty Measure (CPM). Developed by the Public Policy Institute of
California and the Stanford Center on Poverty
and lnequality, the CPM includes differences in non-cash
assistance and cost-of-living in order to provide a more holistic
picture of poverty in the state.
