As happens about this time every year, the federal government has issued their poverty level charts. The 2025 Federal Poverty Guidelines have been published in the Federal Register and are available on Health and Human Services webpages.
Two critical caveats…
A very knowledgeable researcher made a reasonable guess when first developing the poverty guidelines. Since the most reliable data available was on family food costs, she took that known cost of food and multiplied it by three, assuming a typical household spends a third on food, a third on housing and a third on all other expenses.
That researcher (Mollie Orshansky) has for decades suggested changes to the formula as more reliable data has been collected. The federal government, of course, won’t change the formula since it will result in a significantly higher number. (It is now common for struggling families to spend in excess of half their income on housing costs for example.)
Another issue: the data is dated. Much of the math is based on food costs from the summer prior to the update. That means this year’s guideline info was locked-in before the surge in grocery prices of the last several months.
[A special note about Missouri: our state could begin using the updated guidelines today. They won’t. Each year they wait until the absolute last day to implement the numbers – October 1st – meaning our citizens get benefits based on a lower income number than people in many other states for eight or nine months each year.]
Experts have weighted in with better formulas – while knowing that no math will be universal. In rural areas, for example, housing may be less but propane heat and longer drives to work often offset that advantage.
In general, to live the stable lifestyle the guidelines hope to catch takes at least that 185% column on the attached chart. (Think $60,000 for a family of four.) In some parts of the nation 200% of the poverty level leaves a household in dire shape.
Let’s look back…
Poverty Guideline – Annual
Income – For A Family of Four
2025 $32,150
2015 $24,250
2005 $19,350
1995 $15,150
1985 $10,650
Simply put, the cost of being poor has tripled in 40 years.
The Farm Bill which funds SNAP (Food Stamps) is due to be updated. Perhaps that debate would be a good time to update the poverty formula and increase food stamps. Eggs shouldn’t be a luxury food.
Glenn Koenen
Image sources from the Missouri Community Action Network