![]() ![]() The thresholds are mentioned in this legislative section because they are the starting point from which the poverty guidelines are calculated. This phrase refers to the Census Bureau poverty thresholds, although it is included in the legislative section of the 1981 Omnibus Budget Reconciliation Act (OBRA) that requires the Secretary of Health and Human Services to update the poverty guidelines annually. What is “the official poverty line defined by the Office of Management and Budget”? Rounded to various multiples of $10 - may end only in zero (Figures are rounded, and differences between adjacent-family-size figures are equalized.) Guidelines are updated from the latest published (final) weighted average poverty thresholds using the CPI-U. ![]() The final weighted average thresholds are calculated from the current year’s 48-cell matrix using family weighting figures from the Current Population Survey’s Annual Social and Economic Supplement. The preliminary weighted average thresholds are updated from the previous year’s final weighted average thresholds using the CPI-U. The 48-cell matrix is updated each year from the 1978 threshold matrix using the CPI-U. Therefore, the 2021 poverty guidelines are approximately equal to the poverty thresholds for 2020 (for most family sizes). For example, the 2021 poverty guidelines were issued in January 2021, calculated from the calendar year 2019 thresholds issued in September 2020, updated to reflect the price level of calendar year 2020. Some programs make them effective on date of publication, others at a later date. HHS issues poverty guidelines in late January of each year. For example, the poverty thresholds for calendar year 2020 were issued in 2021 (preliminary in January, final in September), were used to measure poverty for calendar year 2020, and reflect the price level of calendar year 2020. The poverty thresholds are adjusted to the price level of the year for which poverty is measured. The Census Bureau issues preliminary poverty thresholds in January, and final poverty thresholds in September of the year after the year for which poverty is measured. one set for Alaska and one set for Hawaii. In addition, there is one set of figures for the 48 contiguous states and D.C. There is no geographic variation the same figures are used for all 50 states and D.C. Weighted average thresholds vary by family size and, for 1- & 2-person units, whether or not elderly. Statistical - calculating the number of people in povertyĪdministrative - determining financial eligibility for certain programsĭetailed (48-cell) matrix of thresholds varies by family size, number of children, and, for 1- & 2-person units, whether or not elderly. Key Differences Between Thresholds and Guidelines For more information, see the discussion of poverty thresholds and poverty guidelines on the Institute for Research on Poverty’s web site. Key differences between the poverty thresholds and the poverty guidelines are summarized in the table below. They are issued each year in the Federal Register by the Department of Health and Human Services (HHS). The poverty guidelines are a simplified version of the federal poverty thresholds used for administrative purposes - for instance, determining financial eligibility for certain federal programs. For an example of how the Census Bureau applies the thresholds to a family’s income to determine its poverty status, see “ How the Census Bureau Measures Poverty ” on the Census Bureau’s web site. ![]() For poverty thresholds before 1980, contact the Census Bureau at 1-80. Poverty thresholds since 1973 (and for selected earlier years) and weighted average poverty thresholds since 1959 are available on the Census Bureau’s web site. They are updated each year by the Census Bureau. ![]() Poverty thresholds are used for calculating all official poverty population statistics - for instance, figures on the number of Americans in poverty each year. What are the differences between the poverty guidelines and the poverty thresholds? ![]()
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