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To modify the measure and use of the poverty line issued by the Secretary of Health and Human Services to more accurately account for the basic needs of families and regional costs of living.
2/4/2025, 4:54 PM
Summary of Bill HR 702
The proposed legislation seeks to take into account factors such as housing costs, childcare expenses, and other basic necessities that can vary significantly depending on where a family lives. By updating the poverty line to more accurately reflect these costs, supporters of the bill argue that it will help ensure that government assistance programs are reaching those who truly need them.
Critics of the bill, however, have raised concerns about the potential impact on government spending and the overall effectiveness of anti-poverty programs. They argue that changing the way the poverty line is calculated could result in more people becoming eligible for assistance, leading to increased costs for the government. Overall, Bill 119 HR 702 represents an effort to address the shortcomings of the current poverty measure and provide a more accurate reflection of the financial challenges faced by families in different regions of the country. The debate surrounding the bill highlights the complex and contentious nature of addressing poverty and inequality in the United States.
Congressional Summary of HR 702
Improving Federal Assistance to Families Act
This bill directs the Bureau of the Census to develop and publish a new regional poverty line index for each state, and requires the Department of Health and Human Services (HHS) to use the new index to determine eligibility for federal programs in certain circumstances.
Specifically, the bureau must develop and publish a new poverty line index, to be known as the Regionally Adjusted Poverty Line, that is measured separately for each state on an annual basis. The Regionally Adjusted Poverty Line must use new poverty thresholds calculated based on the most recent poverty thresholds and each state’s most recent regional price parity. (Poverty thresholds are specified dollar amounts used by the bureau to determine a household’s poverty status. Regional price parities are measurements of the differences in price levels between states and the national average, and are published by the Bureau of Economic Analysis.)
For each state, HHS must determine annually which poverty line index—the Regionally Adjusted Poverty Line or the current poverty line—results in a greater percentage of households falling below the poverty line. HHS must generally use the identified poverty line index for administrative purposes applicable to each state, including to determine residents’ financial eligibility for certain federal programs.
Finally, the Government Accountability Office must study and report to Congress on the Asset Limited, Income Constrained, Employed threshold, an alternate poverty measure that includes consideration of regional costs of necessities like housing, child care, taxes, and transportation.
