2023 Federal Poverty Guidelines Published

High Inflation Causes Huge Jump…

As happens every January, the revised Federal Poverty Guidelines were recently published in the Federal Register and released by Health and Human Services.

Missouri and the other states may begin using the revised levels as soon as they are published:  Missouri traditionally waits months (sometimes till October 1st) before implementing the new numbers for their benefit programs.

Remember, the 2023 number reflect inflation from 2022.  So, Missouri will still be using this 2022 derived data for benefit limits in much of 2024. 

First, the required warnings about the federal poverty guidelines…

  1. They reflect middle-class thinking about how money ought to be spent in the Leave It To Beaver era;
  2. They are for all the 48 contiguous states, so, they apply to Manhattan Kansas and Manhattan island in New York;
  3.  The originator of the poverty formula in later years backed new, more scrutable versions (but bureaucracies hate change); and,
  4.   The guidelines, according to many studies, fall way short of what is needed to a modest yet stable lifestyle.

That said, they’re what we have and what they’ll scream about on FOX News.

You see, inflation pushed the poverty line up to $30,000 per year for a family of four, about an 8% jump in a year after many years of 1% or 2% increases. 

That $30,000 sounds like real money and – as happens every year – the media will find a few thrifty housewives in rural America who claim to do very well, thank you, on way less than a poverty level income.  Good for them.

Now many programs use the poverty guideline as a base and work up.  Expanded Medicaid, for example, is pegged at 138% of the base – or, $41,400 for a family of four this year.  Reduced price school meals cover families up to 185% of the base, so, expect Sean Hannity to lament a family with an income “over $74,000” getting cheaper chicken nuggets.  That’s true but also very, very rare.  Many schools have trouble getting families who qualify for free school meals (130%, or, $39,000) to apply.

Here’s a quick bit of history:

                             YEAR                POVERTY LEVEL (family of four)                        

                             1983                     $10,178                100

                             1993                     $14,350                141

                             2003                     $18,400                181

                             2013                     $23,550                231

                             2023                     $30,000                295

Again, low inflation held down the increases in recent years.  From 2020 to 2021 the guidelines increased by less than $1.00 per day for our mythical family of four.  From 2022 to 2023 the jump was better than $6.00 a day.

My personal belief is a family of four in metro St. Louis needs at least $52,000 a year to maintain a stable life, keep an adequate home and healthy food on the table.

Feel free to share this information and this handout.  (My usual thanks to my graphics department, though my daughter doesn’t keep these charts in her portfolio.)

 

Glenn