There are three sets of figures: for the 48 contiguous states and the District of Columbia; for Alaska; and for Hawaii. The guidelines for Alaska and Hawaii are higher to account for much higher costs of living in those states. Poverty guidelines are updated from the latest published final weighted average poverty thresholds using the CPI-U.
Figures are rounded, and differences between adjacent-family-size figures are equalized. The poverty thresholds are adjusted to the price level of the year for which poverty is measured. For example, the poverty thresholds for calendar year were issued in preliminary in January, final in September , were used to measure poverty for calendar year , and reflect the price level of calendar year HHS issues poverty guidelines in late January of each year.
Some programs make them effective on date of publication, others at a later date. For example, the poverty guidelines were issued in January , calculated from the calendar year thresholds issued in September , updated to reflect the price level of calendar year Therefore, the poverty guidelines are approximately equal to the poverty thresholds for for most family sizes. Source: U. In other words, all official poverty population figures are calculated using the poverty thresholds, not the guidelines.
The poverty guidelines are the other version of the federal poverty measure. The guidelines are a simplification of the poverty thresholds for use for administrative purposes — for instance, determining financial eligibility for certain federal programs. Key differences between poverty thresholds and poverty guidelines are outlined in a table under Frequently Asked Questions FAQs. The following figures are the HHS poverty guidelines which are scheduled to be published in the Federal Register on January 18, The poverty guidelines only measure income.
Other poverty indicators measure total wealth, annual consumption, or a subjective assessment of well-being. People use the phrase "poverty level" to describe both the poverty guidelines and the federal poverty threshold. Census Bureau provides statistics on the poverty threshold. It determines how many Americans live in poverty.
HHS uses the poverty threshold to calculate the poverty guidelines and determine financial eligibility for federal assistance programs.
The poverty guidelines are useful because they draw a line in the sand, differentiating between those who are poor and those who aren't. It gives those who study the poor in America—and those trying to help them—a starting place to understand and relieve poverty. The guidelines also have some pluses and minuses.
They are the same across the nation, except for Hawaii and Alaska. They do take into consideration the higher cost of living in those two states. Unfortunately, they don't take into consideration the poverty levels between the contiguous states. The guidelines also ignore the big difference between urban areas and rural areas. As a result, benefits buy more in rural areas, but the opportunities to find a good job and escape poverty are generally more readily available in urban areas.
Poverty guidelines don't capture other contributions to well-being, either. A family may have lots of assets, such as housing and capital gains and still live below the poverty level.
Similarly, families that receive food stamps, housing assistance, and tax credits are also below the poverty level.
The federal poverty level originated with President Lyndon B. Johnson's War on Poverty initiative. Note that the poverty thresholds — the original version of the poverty measure — have never had separate figures for Alaska and Hawaii. The poverty guidelines are not defined for Puerto Rico, the U. In cases in which a Federal program using the poverty guidelines serves any of those jurisdictions, the Federal office which administers the program is responsible for deciding whether to use the contiguous-states-and-D.
The poverty guidelines apply to both aged and non-aged units. Note that in general, cash public assistance programs Temporary Assistance for Needy Families and Supplemental Security Income do NOT use the poverty guidelines in determining eligibility. The poverty guidelines unlike the poverty thresholds are designated by the year in which they are issued.
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