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This bill would change how the federal government measures poverty so it better reflects the real cost of living in each state. It would create a new poverty measure that adjusts for local prices and family needs, instead of using one national standard everywhere. The Census Bureau would publish this updated measure every year for each state, and the Department of Health and Human Services would use whichever poverty measure shows a higher poverty rate in that state when deciding eligibility for many federal programs. The bill also asks the Government Accountability Office to study another poverty measure known as ALICE, which is designed to show how many working families still struggle to afford basic needs. The goal is to make federal help more accurate so that people in higher-cost areas are less likely to be missed, and so assistance better matches the true needs of families.
- The new measure would be called the “Regionally Adjusted Poverty Line” and would be updated for each state every year.
- It would use state-by-state price differences, based on a federal price index, to adjust poverty thresholds for local costs.
- For most federal uses, health officials would use the poverty measure that shows the higher poverty rate in each state, which could affect eligibility for some programs.
- The bill would also require a study of the ALICE measure and how it might improve the way the government tracks poverty and material need.
Official Summaries
Improving Federal Assistance to Families Act
This bill directs the Bureau of the Census to develop and publish a new regional poverty line index for each state, and requires the Department of Health and Human Services (HHS) to use the new index to determine eligibility for federal programs in certain circumstances.
Specifically, the bureau must develop and publish a new poverty line index, to be known as the Regionally Adjusted Poverty Line, that is measured separately for each state on an annual basis. The Regionally Adjusted Poverty Line must use new poverty thresholds calculated based on the most recent poverty thresholds and each state’s most recent regional price parity. (Poverty thresholds are specified dollar amounts used by the bureau to determine a household’s poverty status. Regional price parities are measurements of the differences in price levels between states and the national average, and are published by the Bureau of Economic Analysis.)
For each state, HHS must determine annually which poverty line index—the Regionally Adjusted Poverty Line or the current poverty line—results in a greater percentage of households falling below the poverty line. HHS must generally use the identified poverty line index for administrative purposes applicable to each state, including to determine residents’ financial eligibility for certain federal programs.
Finally, the Government Accountability Office must study and report to Congress on the Asset Limited, Income Constrained, Employed threshold, an alternate poverty measure that includes consideration of regional costs of necessities like housing, child care, taxes, and transportation.
Current Full Text
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 702 Introduced in House (IH)]
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119th CONGRESS
1st Session
H. R. 702
To modify the measure and use of the poverty line issued by the
Secretary of Health and Human Services to more accurately account for
the basic needs of families and regional costs of living.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
January 23, 2025
Ms. Sherrill introduced the following bill; which was referred to the
Committee on Oversight and Government Reform, and in addition to the
Committee on Ways and Means, for a period to be subsequently determined
by the Speaker, in each case for consideration of such provisions as
fall within the jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To modify the measure and use of the poverty line issued by the
Secretary of Health and Human Services to more accurately account for
the basic needs of families and regional costs of living.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Improving Federal Assistance to
Families Act''.
SEC. 2. NEW POVERTY LINE INDEX.
(a) In General.--The Bureau of the Census shall develop and publish
a new poverty line index to be measured separately for each State on an
annual basis and to be known as the ``Regionally Adjusted Poverty
Line''.
(b) Revisions.--The Regionally Adjusted Poverty Line shall be a
revised version of the most recent poverty line that, for each State--
(1) uses new poverty thresholds created by multiplying the
State's most recent poverty thresholds by its most recent
Regional Price Parity, divided by 100; and
(2) uses new poverty rates created by using the poverty
thresholds determined in paragraph (1) rather than each State's
current poverty thresholds to determine the percentage of
households that are below each State's poverty line.
SEC. 3. USE OF THE REGIONALLY ADJUSTED POVERTY LINE IN LIEU OF THE
POVERTY LINE.
The Secretary of Health and Human Services, in consultation with
the Secretary of Housing and Urban Development, shall--
(1) determine, for each State annually, which poverty line
index between the Regionally Adjusted Poverty Line as specified
in section 2 and the current poverty line has a higher poverty
rate for such State;
(2) issue, and publish in the Federal Register, for each
State, the poverty line index that has a higher poverty rate
for such State as specified in paragraph (1) in lieu of the
poverty line; and
(3) for each State--
(A) except as provided in subparagraph (B), use the
poverty line index that has a higher poverty rate for
such State as specified in paragraph (1) for
administrative purposes, including for determining
financial eligibility for certain Federal programs, in
lieu of the poverty line, and
(B) for the purpose of determining financial
eligibility for Premium Tax Credits under the
Affordable Care Act, have flexibility to use either the
Regionally Adjusted Poverty Line or the current poverty
line to ensure low-income households in States not
expanding Medicaid do not lose access to Premium Tax
Credits.
SEC. 4. GAO STUDY ON ALICE POVERTY MEASURE.
(a) In General.--Not later than 2 years after the enactment of the
enactment of this Act, the Comptroller General of the United States
shall submit to the Committee on Homeland Security and Government
Affairs of the Senate and the Committee on Oversight and Accountability
of the House of Representatives, a report containing the results of a
study on--
(1) the advantages and disadvantages of the ALICE threshold
as a measure of poverty and household material need relative to
the current poverty line, including any additional information
that the ALICE threshold provides to policymakers that is not
available from the current poverty line;
(2) any areas in which the ALICE threshold can be improved
to better measure household material need or improve upon the
current poverty line;
(3) how the Government can assist in the development and
publication of the ALICE threshold; and
(4) how, if at all, the ALICE threshold could be
incorporated into the financial eligibility criteria, both that
maintained by the Secretary of Health and Human Services and
that legislated by Congress, for certain Federal programs to
better meet the material need of households and improve access
to certain Federal programs.
SEC. 5. DEFINITIONS.
In this Act:
(1) Alice threshold.--The term ``ALICE threshold'' means
the Asset Limited, Income Constrained, Employed measure
developed by the United Way of Northern New Jersey as an
alternative to the poverty line that includes the regional
minimum cost of necessities including housing, child care,
food, transportation, healthcare, and taxes.
(2) Poverty line.--The term ``poverty line'' has the same
definition as under section 673 of the Community Services Block
Grant Act (42 U.S.C. 9902).
(3) Poverty threshold.--The term ``poverty threshold''
means the dollar amounts used by the Bureau of the Census to
determine a household's poverty line status.
(4) Regional price parity.--The term ``Regional Price
Parity'' means the difference in price levels between a State
and the national average, expressed as a percentage of the
overall national price level, as published by the Bureau of
Economic Analysis.
(5) State.--The term ``State'' means any State of the
United States, the District of Columbia, the Commonwealth of
Puerto Rico, the Virgin Islands, Guam, American Samoa, and the
Commonwealth of the Northern Mariana Islands.
SEC. 6. EFFECTIVE DATES.
Section 2 shall take effect 1 year after the date of the enactment
of this Act and section 3 shall take effect 3 years after the date of
the enactment of this Act.
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