Poverty Guidelines and Thresholds - How the Census and HHS Measure Poverty Levels

The Employment and Training Administration (ETA) also issues the Lower Living Standard Income Level (LLSIL) annually.

HHS Poverty Guidelines

The annual update of the poverty guidelines occurs shortly after January 15th, which is the day the Bureau of Labor Statistics releases the December Consumer Price Index for Urban consumers (CPI-U).  Each year, the calculation of the poverty guidelines is based on the most recent poverty thresholds published by the Census, adjusted for price changes through the most recent completed year. 

The poverty guidelines issued are a simplified version of the poverty thresholds that the Census uses to prepare its estimates of the number of individuals and families in poverty.  As required by law, the annual update is accomplished by increasing the latest published Census national poverty thresholds by the relevant percentage change in the (CPI–U). 

After this inflation adjustment, the guidelines are rounded and adjusted to standardize the differences between family sizes. Note that the HHS guidelines are roughly equal to the poverty thresholds for their respective calendar years, which the Census Bureau normally publishes in September of each year.

HHS' annually updated poverty guidelines are used as an eligibility criterion by the Community Services Block Grant program and a number of other federal programs.

Census Bureau Poverty Thresholds

Census uses a set of money or income thresholds that vary by family size and composition to determine who is in poverty. 

Poverty thresholds were originally derived in 1963-1964, using U.S. Department of Agriculture (USDA) food budgets designed for families under economic stress combined with data about what portion of their income families spent on food.  If below the threshold, then that family and every individual in it is considered to be living in poverty.

The same thresholds are used throughout the U.S., and do not vary geographically by region or state.  They are updated annually for inflation using the CPI-U.  Although the thresholds in some sense reflect families needs, many government aid programs use HHS Poverty Guidelines, or multiples thereof.

The Census also measures poverty using its Supplemental Poverty Measure in coordination with the Bureau of Labor Statistics.

The Lower Living Standard Income Level (LLSIL)

Another threshold available is the ETA annual LLSIL tables.

These income level standards are used for determining participant eligibility for workforce development programs around the country, assisting low income adults and youth to help them achieve economic and career success.

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• Posted by: Damon Jones
• Posted in: LMI Central