Poverty Line Act of 2025

Bill Number

H.R. 1428

Origin Chamber

House

Congress

119th Congress, Session 1

Policy Area

Social Welfare

Status

Introduced

Latest Action

2025-02-18: 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.

Last Updated

2026-04-10T08:05:36Z

AI-Generated Summary

Purpose of the Legislation

The Poverty Line Act of 2025 aims to modernize the federal poverty line—a benchmark used to determine eligibility for various federal assistance programs—by making its calculation more reflective of current household costs. It seeks to better capture essential expenses like food, housing, and health care, account for regional cost differences, and align with evolving spending patterns to promote greater access to benefits and support economic mobility for low-income families.

Key Provisions

• Redefinition of Poverty Line: Amends the Community Services Block Grant Act (42 U.S.C. 9902(2)) to base the poverty line on a detailed formula for household sizes of 1 to 8 members (with adjustments for larger households). The formula sums costs for:
• Food, clothing, telephone, and internet (using a 5-year average from the Bureau of Labor Statistics' Consumer Expenditure Survey, adjusted for inflation via the Consumer Price Index).
• Rental housing (based on Fair Market Rents from the Department of Housing and Urban Development).
• Child care for up to 6 children under age 5 (using Department of Labor data).
• Health care costs, varying by coverage type (e.g., employer plans, Affordable Care Act benchmarks, or Medicare Advantage plans, drawn from the Medical Expenditure Panel Survey).
• An "other basic goods factor" (at least 1.2) to cover additional essentials like transportation, calculated at the county level.
• Revision and Publication Process: The Secretary of Health and Human Services (HHS), in coordination with the Bureau of the Census, must revise and publish the poverty line annually (or more frequently if needed) in the Federal Register. It incorporates state- and county-level data, with geographic variations, and includes multipliers for economies of scale in larger households. HHS must create a public online lookup tool for determining household-specific poverty lines.
• Flexibility for States: In the Community Services Block Grant program, states may use up to 125% of the official poverty line if it advances program goals, and it serves as an eligibility criterion.
• Safe Harbor Protections: Prevents reductions in a household's poverty line for two years after moving to a lower-cost area; ensures no state's or county's poverty line drops below its pre-2025 level (adjusted for inflation).
• Data Adjustments: Allows the Secretary to use alternative data sources during economic disruptions (e.g., inflation spikes or emergencies) and permits simplified versions for administrative eligibility checks.
• Transition and Oversight: Within one year of enactment, the Office of Management and Budget (OMB) must report to Congress on federal laws and regulations using the old poverty line, recommending updates. HHS must evaluate the new poverty line's effectiveness every four years, publish reports, and propose improvements.
• Limitations: Does not prevent other federal agencies from developing alternative poverty measures for non-eligibility purposes.
• Effective Date: Takes effect three years after enactment.

Significant Changes to Existing Law

The current federal poverty line, established in the 1960s, primarily scales up a basic food budget by a multiplier (about three times) and applies uniform national adjustments, which critics argue underestimates modern costs and ignores regional differences. This act replaces that with a more comprehensive, data-driven approach using multiple real-time sources for essential expenses, introduces mandatory geographic adjustments (state and county levels), and requires regular updates. It shifts from a food-centric model to one encompassing housing, child care, health care, and other basics, potentially raising the threshold in high-cost areas while ensuring a floor based on prior levels.

Potential Impacts

• On Citizens: Could expand eligibility for federal benefits (e.g., block grants, housing aid, health programs), helping more low-income households afford basics and achieve stability. Regional adjustments may better support urban or high-cost rural residents, but simplified administrative versions aim to ease program access without overly complicating applications.
• On Government Agencies: Increases workload for HHS, OMB, Census Bureau, Bureau of Labor Statistics, Department of Housing and Urban Development, and Department of Labor to collect, analyze, and publish data annually. May raise federal spending on assistance programs due to broader eligibility, requiring budget adjustments. States gain flexibility in block grants but must align with the new criteria.
• On International Relations: No direct impacts; the legislation is domestic-focused on U.S. poverty measurement and aid.

Main Stakeholders Affected

• Low-Income Individuals and Households: Primary beneficiaries, as the updated line could qualify more people for aid in programs like community services, housing, child care, and health coverage.
• State and Local Governments: Administer block grants and eligibility; gain tools like the lookup website but may face increased demand for services.
• Federal Agencies: HHS leads implementation; OMB handles transitions; data providers (e.g., Census, Labor, Housing) support calculations. Nonprofits and community organizations using poverty data for services will need to adapt.
• Health and Social Service Providers: Child care centers, health plans, and housing authorities may see shifts in subsidized enrollment.

Notable Legal, Constitutional, or Political Implications

• Legal: Mandates inter-agency coordination and data sharing, potentially requiring new regulations or rules under administrative law. The three-year delay allows preparation but could face challenges if data sources prove unreliable. The rule of construction preserves flexibility for other poverty metrics, avoiding conflicts with existing statutes.
• Constitutional: No apparent issues; aligns with Congress's spending power under Article I to define eligibility for federal programs without infringing on states' rights (states retain some revision authority).
• Political: Bipartisan sponsorship (e.g., Republicans and Democrats) suggests broad appeal for updating an outdated metric, but implementation costs and eligibility expansions could spark debates on welfare scope and fiscal responsibility. Periodic evaluations ensure ongoing accountability to Congress.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Mullin, Kevin [D-CA-15]

Cosponsors (15)

Del. Norton, Eleanor Holmes [D-DC-At Large], Rep. Schakowsky, Janice D. [D-IL-9], Rep. Magaziner, Seth [D-RI-2], Rep. Tlaib, Rashida [D-MI-12], Rep. Watson Coleman, Bonnie [D-NJ-12], Rep. Gomez, Jimmy [D-CA-34], Rep. Fitzpatrick, Brian K. [R-PA-1], Rep. Ramirez, Delia C. [D-IL-3], Rep. Lee, Summer L. [D-PA-12], Rep. McBride, Sarah [D-DE-At Large], Rep. García, Jesús G. "Chuy" [D-IL-4], Rep. Suozzi, Thomas R. [D-NY-3], Rep. Jayapal, Pramila [D-WA-7], Rep. Moulton, Seth [D-MA-6], Rep. Thanedar, Shri [D-MI-13]

Recent Actions

• 2025-02-18: 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.
• 2025-02-18: 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.
• 2025-02-18: Introduced in House
• 2025-02-18: Introduced in House

Bill Versions

• Poverty Line Act of 2025 — issued 2025-02-18 — PDF (10 pages)