The United States witnessed a slight decline in its official poverty rate, reaching a historic low of 10.2% last year, as per U.S. Census Bureau data. However, the supplemental poverty rate, which offers a comprehensive view by including non-cash resources, stayed steady at 13.1%, according to the bureau’s annual poverty report for 2025.
The median household income for 2025 increased by 2.6% to a record $87,460, as highlighted in the annual income report. Experts warn that these figures might not reflect recent federal policy changes affecting household finances. The recent tax and spending bill has significantly reduced Medicaid, food assistance, and other benefits, potentially impacting millions.
Steven Durlauf of the University of Chicago emphasizes that while there is good news in rising household incomes, the unchanged supplemental poverty rate suggests the benefits of economic growth aren’t reaching lower-income individuals. He notes the supplemental measure includes broader factors such as taxes and medical expenses, making it more encompassing than the official poverty measure. “There’s some basic good news there, and that is that median household income, you know, substantially increased 2.6% after inflation is nothing to to sneeze at,” Durlauf said.
Data from the U.S. Census Bureau further shows that full-time working women saw a 3% increase in median earnings, while men experienced a 0.9% decline. Durlauf predicts worsening conditions for marginalized groups due to policies like tax cuts for the wealthy and reduced benefits from programs like SNAP and Medicaid. He points to the issue of rising prices and inflation surpassing wage growth, diminishing real incomes for many.
The U.S. Census Bureau also indicates that 92.1% of people were insured in 2025, up slightly from 92% in 2024, maintaining a relatively stable insurance rate since 2020. However, the Congressional Budget Office estimates that around 15 million people might become uninsured by 2034. The number of children receiving SNAP benefits decreased by 1.2 million from July 2025 to July 2026, according to the Center on Budget and Policy Priorities’ analysis.
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