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)
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WASHINGTON – The U.S. poverty rate fell to a record low in 2025, while median household income reached an all-time high, 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.
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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.
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.
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