The U.S. official poverty rate fell to 10.2% in 2025, the lowest level recorded in the Census Bureau’s historical series, while real median household income rose to a record $87,460.
Featured image: An American family at home. Photo: National Cancer Institute/Unsplash. Stock photograph.
The Census Bureau said Tuesday that about 34.5 million people lived below the official poverty threshold last year. The rate declined by 0.5 percentage point from 2024, marking a second consecutive annual decrease.
Real median household income increased 2.6%, meaning the typical household’s income rose after adjusting for inflation. The gains, however, were not evenly distributed across income groups or demographic categories.
Official and supplemental measures tell different stories
The official measure compares pre-tax cash income with thresholds that vary by family size and composition. In 2025, the poverty threshold for a family of two adults and two children was $32,649.
The Supplemental Poverty Measure, which includes taxes, refundable credits and noncash benefits while accounting for expenses such as housing and medical costs, was higher at 13.1%. That difference illustrates how taxes, benefits and regional living costs can change the picture of economic hardship.
Child poverty under the official measure fell to a historical low of 13.4%. The Census Bureau also reported that the Hispanic poverty rate declined to 13.9%, its lowest recorded level, while remaining above the national rate.
Health coverage remained broadly stable
About 26.7 million people, or 7.9% of the population, lacked health insurance for the entire year. The change from 2024 was not statistically significant, according to the agency.
Coverage sources shifted beneath that stable national rate. Census researchers reported that Medicaid coverage declined for a second consecutive year, reflecting changes in eligibility reviews and enrollment after pandemic-era policies ended.
Why the data matter
Income and poverty statistics shape debates over taxes, safety-net programs, wages and the affordability of housing, food and health care. A lower official poverty rate is a meaningful improvement, but it does not mean that every household experienced the same gains or that cost pressures disappeared.
The figures describe conditions in 2025 and therefore do not fully capture economic changes during 2026, including renewed inflation pressure and higher energy costs. They also depend on the measure used: a household may be above the official poverty line but still face severe strain from rent, child care or medical expenses.
Sources
This report is based on the U.S. Census Bureau’s income and poverty program and its September 15, 2026 releases on 2025 household income, poverty and health insurance, with independent context from Reuters.