What Counts as Broke in America Right Now?

The U.S. poverty line just got updated for 2025—and the numbers might shock you.

The Official Numbers

If you’re a single person earning under $15,650/year, you’re officially living in poverty by U.S. standards. For a family of four, that threshold sits at $32,150 annually.

To put this in perspective: the median U.S. household income is $75,580—literally 2.3x the poverty cutoff.

State variations hit hard:

• Contiguous U.S. + D.C.: $15,650 (1 person) → $32,150 (4 people)
• Alaska: $19,550 (1 person)—25% higher due to cost of living
• Hawaii: $17,990 (1 person)

The Reality Check

Here’s where it gets grim: 36.8 million Americans (11.1% of the population) are below the poverty line as of 2023 data.

But numbers don’t tell the whole story. Poor households are getting absolutely squeezed:

• Housing: Average Americans spend 33.8% of income on it. Those earning <$30k? 41.2%—nearly double the recommended 30% threshold
• Food: Avg household = 12.4% of income. Low-income households = 14-16.7%
• Healthcare costs: Jump from 8.1% (average) to 10.9% (earning $15-30k)

Meanwhile, they spend less on “luxury” items—entertainment drops from 5.3% to 4.8%, personal expenses plummet from 11.8% to 1.2%.

The Takeaway

The poverty line is frozen in 1963 logic (basic food + survival), but inflation has warped what “survival” actually costs. Social Security remains the biggest anti-poverty tool, pulling 27.6M people out of the red—but for millions, the gap between survival and living is still widening.

2025 poverty data from U.S. Census Bureau & Department of Health and Human Services