2022 Poverty Guidelines Issued
The January 12, 2022 edition of The Federal Register published the official updated Poverty Guidelines for 2022.
All governments – including the State of Missouri – can begin using the 2022 guidelines immediately. This being Missouri, food stamp recipients and Medicaid patients won’t enjoy the benefits of the higher income limits until after October 1, 2022.
In other words, since the 2022 benefits are based on 2021 data, this state will happily use two-year-old data to deny struggling families benefits for many, many months. That’s The Missouri Way.
In recent years low inflation has tempered the rate of increase in the poverty guidelines. From 2020 to 2021 reports, for example, the poverty line for a family of four increased by a bit less than $1.00 per day (from $26,200 to $26,500). The 2022 guide for a family of four increased by $1,250 – about $3.42 a day, or, a bit less than the cost of a gallon of milk.
Now, I have to repeat several caveats about the poverty guidelines as reported as the Poverty Line…
- The formula is dated and its creators admit it is flawed, based on a 1950’s assumption that families spend one-third of their income on food and two-thirds on housing and all other costs;
- The guidelines are a national average, not accounting for areas with exceptional housing or utility costs;
- Some have argued the formula overstates some items in the family budget while others show that the federal guidelines undercount the cost of living by 30% to 50%; and,
- The guidelines purport to represent an income which offers sustainability while that has never been the case.
All that said, using these federal guidelines about one American in eight lives with an income below the Poverty Line. Count in families with variable income in low paid jobs and the number vulnerable to getting caught in poverty increases to close to one in four Americans. Note how during the Covid shutdown so many people depended on enhanced unemployment and food stamp benefits! For people we meet every day poverty is not a economic concept, it is a reality or a constant threat.
As always, the attached chart includes the income guidelines for several basic benefit programs. For example, the kids in a family of four with an income of $3,000 a month qualify for free school meals. Yes, $3,000 a month used to be real money. This is 2022 and the national median household income rests around $5,100 a month.
Perhaps more noticeable in Missouri, an adult in a family of four with an income of $38,295 should now be eligible for Medicaid. They can’t earn that much till almost 2023 because of the way Missouri “works” but its nice to know help is on the way. (Remember, the Missouri Chamber of Commerce and Industry and other business groups supported Medicaid Expansion because it makes taxpayers pay for care for low-wage employees.)
Oh yes, in the grocery store the other day I noticed that a box of Jiffy Corn Muffin Mix now cots 69¢, up from 54¢ a few weeks ago and half a dollar last year. That’s a 38% jump in price. Let’s not talk about the price of gasoline to get to work.
Glenn Koenen
2022 Federal Poverty Guidelines
Issued January 2022
|
Number In Household |
Annual Income |
Monthly Income |
Hourly Wage Equivalent |
|
1 |
$13,590 |
$1,132 |
$6.53 |
|
2 |
$18,310 |
$1,526 |
$8.80 |
|
3 |
$23,030 |
$1,919 |
$11.08 |
|
4 |
$27,750 |
$2,312 |
$13.34 |
|
5 |
$32,470 |
$2,706 |
$15.61 |
|
6 |
$37,190 |
$3,099 |
$17.88 |
Each additional household member add $4,540
Hourly Wage based on 40 hours per week
Common Benefit Program Income Limits Derived From
The Poverty Guidelines
|
Number In Household |
125% |
130% |
138% |
150% |
185% |
|
1 |
$16,988 |
$17,667 |
$18,754 |
$20,385 |
$25,142 |
|
2 |
$22,888 |
$23,803 |
$25,268 |
$27,465 |
$33,874 |
|
3 |
$28,788 |
$29,939 |
$31,781 |
$34,545 |
$42,606 |
|
4 |
$34,688 |
$36,075 |
$38,295 |
$41,625 |
$51,338 |
|
5 |
$40,588 |
$42,211 |
$44,809 |
$48,705 |
$60,070 |
|
6 |
$46,488 |
$48,347 |
$51,322 |
$55,785 |
$68,802 |
125% – Maximum Income For USDA TEFAP Commodity Food Eligibility
130% – Maximum Gross Income For Food Stamps & Free School Meals
138% – Maximum Income For Medicaid Under Affordable Care Act
150% – Maximum Income For USDA TEFAP For Senior Citizens
185% – Maximum Income For W.I.C. & Reduced Price School Meals
Poverty Level Family of Four 2021: $26,500
Poverty Level Family of Four 2020: $26,200