Document Type

Report

Publication Date

2015

Keywords

Poverty; Income eligibility; Cliff effects

Abstract

In 2013, the United States Census Bureau reported over 45 million people were living in poverty. This number is calculated by the government based on the minimum income a family needs to cover the basic necessities of life. Poverty is often interpreted by the thresholds and levels determined on a yearly basis; thresholds are an exact dollar amount that indicates whether a family’s combined income is considered to be exceedingly poor. The Federal Poverty Level (FPL) is another way the federal government measures poverty in the United States. The FPL helps guide the development of financial eligibility for federally funded programs such as Medicaid and child care assistance.

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