New Measure of Poverty

The U.S. Census Bureau on November 7, 2011 reported 49.1 million Americans below poverty level, almost 2.5 million more than reported by the U.S. Census Bureau in September 2011. The estimate issued on November 7, 2011 is based on a new measure called the Supplemental Poverty Measure (SPM) that tracks more expense components, including medical costs. The new measure estimated nearly 15.9-percent of elderly population (people of ages 65 and more) below the poverty level, while the Official Poverty Measure (OPM) estimated that figure only at 9-percent. The OPM, in use since 1969, calculates the poverty threshold at three times the cost of a minimum food diet, a standard that was more accurate when proposed in 1963 than in 2010. The SPM calculates poverty threshold using the 33rd percentile of expenditures of food, clothing, shelter and utilities as the basis, with adjustments for housing costs in different parts of the country and for family size and composition.

Breakdown of Various Ethnic Groups

* White---11.1% (SPM), 10% (OPM)
* Black---25.4% (SPM), 27.5% (OPM)
* Asian--16.7% (SPM), 12.1% (OPM)
* Hispanic--28.2% (SPM), 26.7% (OPM)

The U.S. Census Bureau came up with the latest estimate of SPM on November 6, 2013 that revised the official poverty rate measured by OPM and published in September 2013.

* For all of 2012, Poverty Rate: 16% (49.7 million) under SPM vs. 15% (46.5 million) under OPM
* For 65 and older, the difference is stark 14.8% under SPM vs. 9.1% OPM.

Poverty Rate Falls in 2020

U.S. Census Bureau on September 14, 2021 reported a drop in poverty rate in 2020, underlining the key and timely benefits that had been delivered by the federal COVID-19 aid packages to help millions of struggling Americans cushion off a devastating pandemic-induced blowback. The poverty rate dropped 9.1% in 2020 from 11.8% in 2019. Approximately 8.5 million people have been lifted off the poverty by a generous set of COVID-19 aid packages. Poverty is defined in the U.S. as an economic phenomenon if a family of four earns less than $26,250 per year.