The number of people living in poverty in the United States increased in 2023, the U.S. Census Bureau reported in September 2024. But how is poverty calculated in the U.S., what is the reality behind the numbers, and what can we do about it?
Calculating Poverty
Part of what makes poverty so vexing is the different ways in which it’s calculated. In 2023, the official poverty rate was 11.1%, according to the Census Bureau. This means 36.8 million people were living below the federal poverty line, which for that year was $15,580 for individuals and $31,200 for a family of four.
What’s wrong with that measure is it’s the same everywhere; therefore, it does not really take into account the differences in cost of living in communities across this country. New York City has the same threshold as Biloxi, Mississippi.
The Supplemental Poverty Measure (SPM) does this in an alternative way. The SPM accounts for geographic-based variations in housing expenses, unlike the official measure. Factoring in government assistance provided to families with low incomes, the SPM placed the national poverty rate at 12.9% in 2023. In 2022, the SPM put the poverty rate at 12.4%.
Where the official measure and the SPM both fall short is in their low thresholds. The notion that a family of four—or any family size, for that matter—can manage to make ends meet on only $32,000 per year, an amount just above the poverty line, is anything but realistic, particularly in high-cost areas. It is also impossible for a single person to be able to live on an annual income of only $16,000.
Looking Beyond the Federal Rates
A 2024 article published by the Brookings Institution proposed a more accurate way of measuring poverty by determining the cost of basic necessities in every county in America. When comparing those costs with the budgets needed to pay for them, the researcher came to the startling conclusion that 43% of U.S. households are living in poverty.
Unfortunately, due to the centuries-long streak of institutional racism in the country, Black and Hispanic families are more likely to experience financial difficulties compared to their white counterparts. In fact, according to its estimates, the Brookings Institution believes 59% of Black families and 66% of Hispanic families cannot afford to meet basic needs. That is not all, as in an independent analysis of Black and white families carried out by the Urban Institute, it was observed that family wealth gaps widen with age. Troublingly, these inequities exist at a time when wealth is increasing at a dramatic rate among the richest Americans.
Federal Efforts
For the past few years, one of the biggest victories in the fight against poverty has been expanding the Child Tax Credit. When passed into law in 2021 with the American Rescue Plan, the credit boosted the pool of people who fell under the category of receiving direct monthly payments from the government. It led to an unprecedented plunge in the child poverty rate.
That the law was a success shows that government can take the necessary steps to raise millions of Americans out of poverty. Unfortunately, it may lack the will: When Congress allowed the expanded credit to lapse, the child poverty rate ballooned in 2022 from 5.4% to 12.2%. With the new presidential administration threatening to cut deeply into essential programs like Medicaid, the need for nongovernmental groups to step in is growing.
The Vital Role of Nonprofits
Among these groups is Islamic Relief USA. IRUSA is a U.S.-based nonprofit that aims to provide humanitarian relief to people around the globe.
IRUSA does much of its work in the United States, feeding food-insecure people. For example, its Summer Food Program provides nutritious meals when children have limited or no access to school-provided meals during this season. In 2024 alone, IRUSA has provided nutritious meals to over 50,000 people.
The holiday season is another difficult time of year for people struggling with poverty in the U.S. Knowing this, IRUSA has traditionally spent each Thanksgiving distributing turkeys to people who cannot afford them. Assisted by 60 partners this year, IRUSA plans to give free turkeys to 80,000 people. IRUSA is also partnering with six partners to carry out its Hot Meals program, which has served 146,000 people this year alone in New York City and Detroit, with a special emphasis on food insecurity in major urban centers.
In addition, IRUSA works with partner organizations to support some of the country’s most vulnerable residents: newly arrived refugees. IRUSA’s aid helps these families resettle in the U.S. and provides for transportation from the airport, food, essential household items, caseworkers to assist with benefits enrollment, and other services. The program has supported nearly 600 refugees so far, and in 2024, IRUSA is working to help resettle another 800+ refugees in four states.
IRUSA volunteers are also active across the country. These Blueshirts — so nicknamed because of their bright blue tee-shirts — donate their time and energy to a range of projects, including the annual Day of Dignity. This day of service brings volunteers together to serve hot, nutritious meals, pack and distribute hygiene kits, and even provide free haircuts to their fellow community members in need.
Community Development
IRUSA also offers multi-dimensional assistance for community groups providing direct services to some 50,000 people across the country. The range of services provided by these groups is vast, from projects that increase accessibility for Deaf community members, to eviction prevention initiatives, to an aeronautics camp for underrepresented youth interested in science, technology, engineering, and mathematics (STEM).
Through these and many more programs across the United States, IRUSA lives out one of its central beliefs: that charity starts at home.