US poverty rate hits record low as median household income reaches new high
A person eats while walking along Fifth Street in Los Angeles skid row on Monday, December 12, 2022. (Photo by Sarah Reingewirtz/MediaNews Group/Los Angeles Daily News via Getty Images)
WASHINGTON - The U.S. poverty rate fell to a record low in 2025, while median household income reached an all-time high, the Census Bureau reported Tuesday. About 34.5 million people lived in poverty last year.
The decline marked the second consecutive annual drop in the poverty rate, which reached its lowest level since the bureau began tracking the measure. The figures come as policymakers debate how federal spending cuts could affect safety-net programs.
By the numbers:
The official poverty rate fell by 0.5 percentage point to 10.2% in 2025. The supplemental poverty measure, which accounts for taxes and noncash government benefits, stood at 13.1%. Median household income rose 2.6% to $87,460.
A family of two adults and two children was considered to be living in poverty if its annual income was below $32,649. The child poverty rate also fell to a record low of 13.4%.
Most people in the U.S. had health insurance for at least part of 2025. However, 26.7 million people, or 7.9% of the population, were uninsured throughout the year.
Washington state police buy homeless shoplifter jacket, snow pants amid freezing temps
Officers with the Redmond WA Police Department purchased a jacket and snow pants for a homeless man who was detained for shoplifting at a local Target. Officers didn't want the man to "freeze to death" amid cold temperatures. (Credit: Redmond WA Police)
Big picture view:
The Census Bureau said the figure was not significantly different from the previous year, with the uninsured rate remaining near historic lows.
The Source: Reuters contributed to this report. The information in this story came from the U.S. Census Bureau’s 2025 data on poverty, household income and health insurance coverage. The figures include the national poverty rate, median household income, child poverty rate and number of uninsured people. This story was reported from Los Angeles.