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🧩 What Is “The Poverty Line”?

The United States uses three different poverty definitions, each serving a different purpose. They are related, but not interchangeable.

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1️⃣ The Official Poverty Measure (OPM)

The original 1960s formula still used for federal statistics

The OPM was created by economist Mollie Orshansky in 1963.
It is based on a simple idea:

Cost of a minimum food diet × 3

Why ×3?
Because in the 1960s, low‑income families spent about one‑third of their income on food.

Each year, the thresholds are updated using the Consumer Price Index (CPI).

A household is counted as “in poverty” if its cash income falls below its threshold.

Important limitations:

• Does not include SNAP, housing assistance, or tax credits
• Does not adjust for geographic cost differences
• Excludes unhoused people not in shelters, institutionalized people, and many military personnel

This measure is widely considered outdated.

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2️⃣ The Supplemental Poverty Measure (SPM)

A modern, more realistic measure (but not used for program eligibility)

Created in 2010, the SPM accounts for:

• taxes
• SNAP
• housing subsidies
• childcare costs
• medical expenses
• geographic cost differences

It uses thresholds based on actual household expenditures, not just food.

The SPM typically shows higher poverty rates because it reflects real living costs.

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3️⃣ The HHS Poverty Guidelines (FPL)

The version used for SNAP, Medicaid, school lunches, and other programs

These are simplified versions of the Census thresholds, published annually by the Department of Health and Human Services.

Example (2026):

• 1 person: $15,960/year
• 4 people: $33,000/year

Programs often use percentages of the FPL:

• SNAP → 130% FPL
• Medicaid → 138% FPL
• WIC → 185% FPL

These guidelines are simpler and do not vary by age or detailed family composition.

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📊 How Many People Live Below the Poverty Line?

Using the most recent Census data:

• Official Poverty Measure (OPM):
  35.9 million people (10.6% of the U.S. population)
• Supplemental Poverty Measure (SPM):
  ~44 million people (12.9% of the population)

The SPM is considered more accurate because it reflects real costs of living.

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🧠 Why the Poverty Line Is Controversial

The original formula assumes:

• food = 1/3 of a household budget

But today:

• housing, childcare, and healthcare dominate budgets
• food is closer to 10–15% for many families

This means the poverty line underestimates true economic hardship.

Millions more live in “near‑poverty,” earning:

• 125% of the poverty line
• 150% of the poverty line
• 200% of the poverty line

These households often cannot meet basic needs despite being “above” the line.

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🎯 Summary

The poverty line is not one number — it’s three systems:

• The OPM (old formula, used for statistics)
• The SPM (modern formula, used for analysis)
• The FPL (simplified version used for program eligibility)

Between 36 and 44 million Americans live below these thresholds, depending on the measure.

And because the formula is outdated, the real number of people struggling to meet basic needs is significantly higher.

We Believe You

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