Malcolm Rivera
The Federal Poverty Level (FPL) is used to determine eligibility for certain federal and state assistance programs. The FPL is the minimum income that a family requires for food, clothing, transportation, shelter, and other necessities. It is based on the size of a household and the state in which one resides. The FPL is published by the Department of Health and Human Services (HHS) and is adjusted for inflation annually. The FPL is sometimes referred to as the federal poverty level or poverty line. The poverty threshold, on the other hand, is another important federal measure that defines poverty and provides statistics on the number of people living in poverty. The poverty threshold is determined by the US Census Bureau and is based on pre-tax income.
| Characteristics | Values |
|---|---|
| Basis | The poverty guidelines are set each year by the Department of Health and Human Services (as opposed to the poverty threshold, which is set by the Census Bureau and used for statistical purposes) |
| Frequency | The Federal Poverty Guidelines are updated each year, generally in mid-late January. |
| Geographical variation | The Federal Poverty Guidelines are the same in 48 of the 50 states. The two exceptions are Alaska and Hawaii, which have higher Federal Poverty Levels due to the higher cost of living. |
| Household income | The poverty threshold is the dollar amount used to determine poverty status. If a family's total income is less than the family's threshold, then that family and every individual in it is considered in poverty. |
| Household size | The poverty thresholds vary by the size of the family and age of the members. For each additional person in the household, the federal poverty level increases by $5,380. |
| Household composition | The Census Bureau uses a set of money income thresholds that vary by family size and composition to determine who is in poverty. |
| Age | The Census Bureau poverty thresholds have separate figures for aged and non-aged one-person and two-person units. |
| Benefits | The Federal Poverty Guidelines are used to determine eligibility for certain federal and state assistance programs, such as housing vouchers, Medicaid, and CHIP. |
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What You'll Learn
The poverty threshold
The Census Bureau assigns each person or family one out of 48 possible poverty thresholds. These thresholds vary by the size of the family and the age of its members. For each additional person in the household, the poverty level increases. For instance, if the poverty level for a family of two is $21,150, then a family of three would have a poverty level of $26,650.
If an individual or group of individuals (such as housemates) are not living with family members, their own individual income is compared with their individual poverty threshold. If a family's total income is less than the family's threshold, then that family and every individual in it is considered in poverty.
The poverty guidelines, on the other hand, are designated by the year in which they are issued. They are set each year by the Department of Health and Human Services (HHS) and are based on the Census Bureau's poverty thresholds, adjusted for price changes using the Consumer Price Index (CPI-U). The poverty guidelines are used to determine eligibility for certain federal and state assistance programs, such as Medicaid, housing vouchers, and the Children's Health Insurance Program (CHIP).
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Household income
The Department of Health and Human Services (HHS) sets the FPL each year, usually in mid-January, and it is based on household income and size. The FPL is adjusted for inflation annually and varies depending on the geographical location within the country. For instance, in 2025, the annual FPL for an individual in Alaska was $19,550, in Hawaii, it was $17,990, and for the remaining states, it was $15,650. For each additional person in the household, the federal poverty level increases by $5,380.
When determining eligibility for assistance programs, some government agencies compare before-tax income to the FPL, while others consider after-tax income. Certain programs, such as Medicaid and the Children's Health Insurance Program (CHIP), use a percentage of the FPL, usually 138%, as the eligibility criterion. Other programs, like the Utility Assistance program, may require households to earn less than a specific percentage of the FPL, such as 150%.
It is important to note that the FPL should not be confused with the poverty threshold, which is another federal measure used primarily for statistical purposes and to help calculate poverty guidelines. The poverty threshold is set by the Census Bureau and defines poverty by providing statistics on the number of individuals and families living below the FPL. The Census Bureau assigns one out of 48 possible poverty thresholds based on family size and the age of its members.
While the FPL is used to determine eligibility for federal and state assistance programs, it is not the sole criterion. Other factors, such as marital status, age, and geographical location, may also be considered when assessing eligibility for specific programs. Additionally, some programs may use alternative measures, such as the Federal Benefit Rate (FBR), which is the maximum monthly cash benefit amount for individuals who qualify for Supplemental Security Income (SSI).
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Family size
The Federal Poverty Level (FPL) is the annual income earned by a household below which they would be eligible to receive certain welfare benefits. The FPL is the minimum income that a family requires for food, clothing, transportation, shelter, and other necessities. The FPL is published by the Department of Health and Human Services and is adjusted for inflation annually.
The FPL is used to determine eligibility for certain federal and state assistance programs, such as housing vouchers, Medicaid, and CHIP. The FPL is different from the poverty threshold, which is a statistical measure that defines poverty and provides statistics on the number of people living in such conditions. The poverty threshold is set by the Census Bureau and is based on pre-tax income.
The FPL varies according to the size of the family and their geographical location within the country. For each additional person in the household, the federal poverty level increases. For example, in 2024, the FPL for a household of three was $25,820, which is $5,380 more than the FPL for a household of two. The FPL is also higher in Alaska and Hawaii than in the rest of the United States due to the higher cost of living.
The FPL is used by government agencies to determine eligibility for various benefits and assistance programs. Some agencies compare before-tax income to the poverty guidelines, while others compare after-tax income. Certain programs, such as Medicaid and CHIP, use a percentage of the FPL to determine eligibility. For example, an income of less than 138% of the FPL qualifies an individual for Medicaid or CHIP. Other programs, such as the Utility Assistance program, may have different income limits, such as less than 150% of the FPL.
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Geographical location
The official poverty thresholds do not vary geographically, but they are updated for inflation using the Consumer Price Index (CPI-U). The thresholds are intended for use as a statistical yardstick, not as a complete description of what people and families need to live.
However, the Federal Poverty Level (FPL) does vary according to geographical location within the country. The FPL is the annualized income earned by a household below which they would be eligible to receive certain welfare benefits. The FPL is determined by household income and size, and the total cost needed by the average person per year to cover basic necessities such as food, utilities, and accommodation. The FPL is used to establish eligibility for certain federal subsidies and aid, such as housing vouchers, Medicaid, and CHIP.
The FPL is the same in 48 of the 50 states. The two exceptions are Alaska and Hawaii, which have higher Federal Poverty Levels due to the higher cost of living. For example, in 2025, the annual FPL for an individual in Alaska is $19,550, in Hawaii, it is $17,990, and in the remaining states, it is $15,650.
The FPL is also used to determine eligibility for certain federal programs, such as the Supplemental Nutrition Assistance Program (SNAP). The exact percentage of the FPL used for eligibility purposes varies based on the program and the state. For example, many states use 138% of the FPL for Medicaid eligibility.
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Eligibility for federal programs
The poverty guidelines, sometimes referred to as the "federal poverty level" (FPL), are federally set "poverty lines" that indicate the minimum amount of annual income that an individual or family needs to pay for essentials such as housing, utilities, clothing, food, and transportation. The FPL is based on the size of a household and the state in which one resides.
The FPL is used to determine eligibility for certain federal and state assistance programs, such as housing vouchers, Medicaid, and the Children's Health Insurance Program (CHIP). The FPL is different from the poverty threshold, which is set by the Census Bureau and is used for statistical purposes rather than for the administration of income-based federal programs. The poverty threshold defines poverty and provides statistics on the number of people living in poverty in the US.
The FPL is typically issued annually in January by the Department of Health and Human Services (HHS) and is determined by household income and size. The HHS publishes updated FPL numbers in mid-January each year, and agencies use this new amount to determine eligibility for Medicaid and CHIP. For example, an income of less than 138% of the FPL will qualify an individual for Medicaid or CHIP. The FPL for 2025 is $15,650 for an individual and $21,150 for a married couple. For each additional person in the household, the federal poverty level increases by $5,380.
It is important to note that the FPL is not the same in all states. While the FPL is the same in 48 of the 50 states, Alaska and Hawaii have higher Federal Poverty Levels due to the higher cost of living. For example, in 2025, the annual FPL for an individual in Alaska is $19,550, while in Hawaii, it is $17,990.
In addition to Medicaid and CHIP, other programs that use the FPL to determine eligibility include the Supplemental Nutrition Assistance Program (SNAP), the Low-Income Home Energy Assistance Program (LIHEAP), Weatherization Assistance for Low-Income Persons, and the National School Lunch Program. These programs may use different percentages of the FPL to set income limits and eligibility criteria. For instance, the Utility Assistance program requires a household to earn an income of less than 150% of the FPL.
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Frequently asked questions
The poverty threshold is a statistical yardstick used to define poverty and provide statistics on the number of people living in poverty in the US. The FPL, on the other hand, is used to determine eligibility for certain federal and state assistance programs.
The FPL is influenced by the size of the household, the state or geographical location, and the cost of living in that particular area.
The FPL is calculated by taking the previous year's Census Bureau's poverty thresholds and adjusting them for price changes using the Consumer Price Index (CPI-U).
The FPL is used to determine eligibility for various federal and state assistance programs, such as Medicaid, housing vouchers, and food stamps. It helps identify individuals or families who may need additional support to meet their basic needs.
The FPL is typically updated annually, usually in mid-to-late January, to account for inflation and changes in the cost of living.
