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Typically, legal aid organizations can use LSC funds only to serve the legal needs of people with household incomes at or below 125% of the federal poverty level. These people make up the set of “low-income Americans” of central focus in this report. To provide a fuller picture of this population, this section offers a glimpse of who today’s low-income Americans are. Using recent data collected by the U.S. Census Bureau, it explores how many Americans have low household incomes, where they live, and how they compare with the general U.S. population.

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ABOUT THE DATA: This section leverages two U.S. Census Bureau data sources. Whenever possible, we use the 2021 Annual Social and Economic Supplement (ASEC) of the Current Population Survey (CPS) because it is the most current data available, providing poverty estimates based on 2020 income and household information. We use the 2019 American Community Survey (ACS) 1-year Estimates where 2021 CPS ASEC data are not available.

The income categories in these two data sources are based on the U.S. Census Bureau’s “poverty thresholds.” Note that poverty thresholds are different from the “poverty guidelines” (published by the U.S. Department of Health and Human Services), which are used to determine one’s percent of FPL and eligibility for LSC-funded legal assistance. Please also note that the U.S. Census Bureau reports on household incomes below 125% of the poverty thresholds rather than household incomes at or below 125% of FPL (which is how income eligibility for LSC-funded services is defined).

Some additional data sources are used for the “Special Focus” populations at the end of this section; we note these accordingly. The unit of analysis in this section is individuals.

About 50 million Americans have household incomes below 125% of poverty, including more than 15 million children.

In 2022, household incomes below 125% of poverty correspond to annual incomes below $34,500 for a family of four or $17,500 for an individual.7 Fifteen percent of Americans live in households with annual incomes below these levels. This translates to approximately 50 million low-income Americans, including approximately 15.2 million children (<18 years old).

Figure 2A. Low-income Americans’ share of state populations in 20218

Map of United States in various shades of blue

As Figure 2A above depicts, low-income Americans make up larger shares of some states’ populations than others. The states with the highest proportions of low-income residents include Mississippi (24%), New Mexico (23%), Louisiana (21%), and Oklahoma (20%). If we look at population counts (instead of proportions), the states with the largest populations naturally stand out as having the highest numbers of low-income residents. For example, California alone has about 5.9 million low-income residents, Texas has about 5.4 million, Florida has about 3.9 million, and New York has about 3 million.

About 50 million Americans have household incomes below 125% of the poverty threshold.

People living in rural areas are more likely to have low household incomes than people in other areas.

Most Americans live in suburban or urban areas,9 and those with low incomes are no exception. Combined, suburban and urban areas are home to approximately 42 million low-income people whereas only about 8 million low-income people live in rural areas. Note, however, that this low population count for rural low-income Americans is driven by the fact that not many Americans live in rural areas more generally. As a matter of fact, people living in rural areas are actually more likely than others to have low incomes: 19% of the rural population has a household income below 125% of poverty compared to 15% of the combined suburban/urban population.10

Compared to non-Hispanic Whites, Blacks and Hispanics are more than twice as likely to have household incomes below 125% of poverty.

As Figure 2B shows, Blacks and Hispanics are much more likely to have low incomes compared with non-Hispanic Whites and Asian Americans. Indeed, more than one-quarter (26%) of all Blacks and nearly one-quarter (23%) of Hispanics live in households with incomes below 125% of poverty.

That said, given the relative sizes of the racial and ethnic groups in the United States, the low-income, non-Hispanic White population (~21.4 million) far outnumbers the size of the low-income populations among Hispanics (~14 million), Blacks (~11 million), and Asian Americans (~2.3 million).

Figure 2B. Proportion of racial/ethnic groups with household incomes below 125% of poverty11

26%
Black (any ethnicity)
23%
Hispanic (any race)
11%
Non-Hispanic White
11%
Asian (any ethnicity)

Percent of U.S. racial/ethnic populations

One in five American children lives in a low-income household.

More than one-fifth (21%) of all American children live in households with incomes below 125% of poverty. This translates to about 15.2 million children in total. Additionally, children are disproportionately represented in the low-income population compared to the general population. See Figure 2C which presents the distribution of children under 18 years old, adults between 18 and 64 years old, and seniors (65 years or older) for the low-income and general populations in the United States. As the figure shows, children make up a nearly one-third (31%) of the low-income population but less than one-quarter (22%) of the general population.

Figure 2C. Distribution of age: low-income versus general U.S. population12

31%
Children 17 years old or younger
22%
54%
Adults 18-64 years old
61%
15%
Seniors 65 years or older
17%

Percent of individuals
Low-income population General population

21% of children in the U.S. live in households with incomes below 125% of the federal poverty level.

Low-income women and girls outnumber low-income men and boys in the United States.

There are approximately 5.7 million more women and girls with low incomes than men and boys. There are roughly 27.8 million women and girls, and roughly 22.1 million men and boys who live in low-income households. These numbers reflect the fact that women and girls are disproportionately represented in the low-income population (which is 56% female) compared to the general population (which is 51% female). See Figure 2D. Additionally, it is worth noting that a majority (58%) of all the low-income households with children are headed by single women.13

Figure 2D. Distribution of males and females: low-income versus general U.S. population14

Graphic showing red and dark blue chart with data

Percent of individuals

Headshot of Cathy

Client Story

Cathy | Georgia | Eviction. Cathy’s financial troubles began when work reduced her hours at the beginning of the pandemic. She was already behind on bills when she was involved in a car accident that left her injured so badly that she could no longer work. She eventually got so far behind that she faced a monthly threat of eviction. The Atlanta Legal Aid Society connected Cathy to a local rental assistance program that helped her pay back rent and also helped her secure Social Security Disability Insurance benefits to pay for food and other necessities.

Compared to the general adult population, low-income adults are disproportionately less likely to have a college degree and more likely to have never graduated high school.

Figure 2E presents the distribution of educational attainment for the general and low-income adult (18 years or older) populations in the United States. As the figure shows, one in five (20%) low-income adults has less than a high school education (or equivalent), which is more than twice the rate for the general adult population (9%). In the same vein, only 13% of low-income adults have a college education compared with 31% of the general adult population.

Figure 2E. Distribution of education: low-income population versus general U.S. population15

20%
Less than high school
9%
44%
High school or GED
36%
23%
Some College
24%
13%
College degree or more
31%

Percent of individuals
Low-income population General population

Impact of the COVID-19 Pandemic

The COVID-19 pandemic has had devastating and disproportionate effects on low-income Americans.

In addition to the direct health impacts of the COVID-19 virus on low-income families and communities,16 the pandemic has also had unprecedented consequences for their economic situations, housing security, mental health, physical safety, food security, access to education, and many other aspects of their lives.17

To provide a sense of some of the challenges low-income  Americans still face a full two years into the pandemic, we share some results from the U.S. Census Bureau Household Pulse Survey’s most recent week of data collection at the time of writing this report (Week 43: March 2 – 14, 2022).18 The statistics below correspond to people with annual household incomes less than $25,000.

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Finances

23% of low-income of low-income households lost employment income in the previous four weeks.

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Housing

18% of low-income renter households were behind on rent payments.

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Food Security

26% of low-income households did not always have enough food to eat in the previous week.

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Mental Health

36% of low-income adults experienced anxiety symptoms on seven or more of the previous 14 days.

Geographic Focus

This snapshot presents estimates for the proportion of populations with household incomes below 125% of the federal poverty level (FPL) for each of the four Census regions in the United States. All estimates come from the Current Population Survey (CPS) 2021 Annual Social and Economic Supplement (ASEC).19 The unit of analysis is individuals.

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Midwest

14% of the population in the midwest is below 125% of FPL.

9.2 million children and adults.

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Northeast

14% of the population in the northeast is below 125% of FPL.

7.4 million children and adults.

Blue icon for West region

West

14% of the population in the west is below 125% of FPL.

11.1 million children and adults.

Light Blue icon for South region

South

18% of the population in the south is below 125% of FPL.

22.2 million children and adults.

United States map showing the regions of the population - West, Midwest, Northeast, and South

Special Focus

This snapshot presents estimates for the proportion of populations with household incomes below 125% of poverty for each of the six subpopulations of special interest in this report. With the exception of the estimate for survivors of domestic violence, all estimates come from recent U.S. Census Bureau data sources.20 The unit of analysis is individuals.

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Seniors

7.6 million seniors have household incomes below 125% of FPL.

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People in Rural Areas

8 million people living in rural areas have household incomes below 125% of FPL.

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Veterans

1.6 million veterans have household incomes below 125% of FPL.

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People with High Housing Costs

15 million households with high housing costs have annual household incomes of less than $25,000.

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Children (<18 yrs)

15.2 million children live in households with incomes below 125% of FPL.

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Survivors of Domestic Violence

The rate of intimate partner violence for women is nearly 3 times higher among those in the lowest income quartile versus those in the highest.

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