Poverty Line Act of 2025
Poverty Line Act of 2025
Plain Language Summary
# Poverty Line Act of 2025 – Plain Language Summary **What It Does:** This bill would change how the federal government calculates the poverty line—the income threshold used to determine who qualifies for assistance programs. Currently, the poverty line is adjusted each year based on inflation. The new approach would require the Department of Health and Human Services to calculate different poverty lines for different regions, factoring in local costs for housing, food, clothing, utilities, transportation, and health insurance rather than using a one-size-fits-all national number. **Who It Affects:** Millions of Americans could be impacted, including families applying for programs like food stamps (SNAP), children's health insurance (CHIP), and school lunch assistance. The changes could alter eligibility for these programs depending on where people live, since costs vary significantly between regions.
The bill would also require HHS to create a public online tool to help people determine their local poverty guideline. **Current Status:** The bill is currently in committee and has not yet been voted on by Congress. It was introduced by Rep. Kevin Mullin (D-CA) and would need to pass both the House and Senate before becoming law.
CRS Official Summary
Poverty Line Act of 2025This bill revises the methodology used to calculate the federal poverty guidelines. The federal poverty guidelines are used to determine eligibility for many federal and state public assistance programs, including the Supplemental Nutrition Assistance Program (SNAP), the Children’s Health Insurance Program (CHIP), and the National School Lunch Program. The poverty guidelines are currently calculated by adjusting the Census Bureau’s poverty thresholds to account for changes in the Consumer Price Index.The bill requires the Department of Health and Human Services (HHS) to calculate regional poverty guidelines based on a combination of factors including average household expenditures on food, clothing, utilities, and transportation; the average cost of rental housing; and the average cost of health insurance. These factors must be calculated using regional data as applicable. HHS must make available to the public a tool for determining the poverty guideline applicable to a given household. The new regional poverty guidelines established by HHS may not be lower than existing, corresponding poverty guidelines as of the date of enactment of the bill. HHS must review and evaluate the poverty guidelines at least every four years and propose changes to this methodology as appropriate. The bill takes effect three years after its enactment.
Latest Action
Referred to the Committee on Education and Workforce, and in addition to the Committee on Oversight and Government Reform, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.