National poverty statistics declined to 10.2% in 2025, down 0.5 percentage points from 2024. University of Michigan experts are available to discuss the latest numbers from the U.S. Census Bureau, which reported that 34.5 million people live in poverty.
The poverty threshold for a family of four in 2025 was $32,970. The official poverty rate for children fell to a historic low of 13.4 percent last year.
Kristin Seefeldt is the director of Poverty Solutions and associate professor of social work and public policy.
"It's notable that the median income for the top earners is increasing, while income for the lowest earners is stagnant," she said. "The tax code has been revised to lower marginal tax rates for everybody, and we see the top earners benefiting from that. These income and poverty numbers don't yet reflect the continued increase in day-to-day costs like groceries and gas, which will show up later in the Supplemental Poverty Measure."
Natasha Pilkauskas is the associate director of Poverty Solutions and a professor of public policy.
"While it's encouraging to see the official child poverty rate reach a historic low, the supplemental poverty rate provides important additional context," she said. "The Supplemental Poverty Measure takes into account expenses, and the fact the SPM increased to match the Official Poverty Measure in 2025 for the first time is likely a reflection of the increasing costs of living.
"Social Security is playing an important role in lifting older adults out of poverty—likely as well as the children who are living with their grandparents."
Amanda Nothaft is director of data and analysis at Poverty Solutions.
"The poverty numbers look pretty good—especially child poverty—but these numbers do not reflect cuts in benefits that started to take effect at the start of 2026. These changes will have a large impact on the Supplemental Poverty Measure next year," she said.
"The increase in female-to-male earnings ratio reflects higher earnings for women and is likely contributing to the reduction in the overall Official Poverty Measure for children."
Written by Lauren Slagter, Poverty Solutions
