Poverty Increased in 2023 as Prices Rose and Pandemic Aid Programs Expired

The nation’s poverty rate rose last year even as incomes improved, the government reported on Tuesday, reflecting higher prices and the expiration of the last pandemic relief programs.

The share of Americans living in poverty as defined by the Census Bureau’s “supplemental” measure, which takes into account a broader range of benefits and expenses than the official poverty rate, rose to 12.9 percent in 2023, from 12.4 percent in 2022. The median household income, adjusted for inflation, rose to $80,610, finally regaining its prepandemic level.

Poverty levels have risen anew in recent years after a wave of pandemic relief aid — and an exceptionally strong labor market that lifted the wages of many at the bottom of the pay spectrum — collided with the most rapid inflation in a generation.

Stimulus checks, extra unemployment insurance and expanded tax credits for low-income families cut child poverty in half in 2021, to the lowest rate since record keeping began, in 1967. But the expiration of those supports, along with the jump in prices for food and other necessities, reversed the gains in 2022.

“You need two kinds of strategies to keep poverty down: One is the economic strategy, and one is the investments in core programs and the safety net,” said Olivia Golden, interim executive director of the Center for Law and Social Policy, a progressive advocacy group. “To me, the idea that policies have high stakes in terms of the lives of families and their material hardship is very vivid as you look over the last few years.”

The income gains were particularly pronounced for low-wage households, rural households and men, with the gap between male and female earnings rising for the first time since 2003. Census officials say that may have been because of an increase in the labor force participation of Hispanic women, who tend to earn less.