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Economics

Poverty Rate in the U.S. Decreased to 10.2% in 2025

9/17/2026, 01:56 PM • Evgenia Sliv

(edited: 09/17/2026)

Poverty Rate in the U.S. Decreased to 10.2% in 2025

The poverty rate in the U.S. decreased to 10.2% in 2025, according to data from the Census Bureau. Despite 34.5 million people remaining below the poverty line, the median household income reached a record $87,460, increasing by 2.6% compared to the previous year when it was $85,210. These figures were released this Tuesday and only cover the calendar year 2025, not accounting for inflation fluctuations and other economic changes.

The reduction in the domestic poverty rate was 0.5 percentage points, while the child poverty rate fell to a historic low 13.4%. However, the Supplemental Poverty Measure, which considers the impact of taxes, credits, and social assistance programs, remained at 13.1%, statistically unchanged from 2024. The social security program played a significant role, supporting 28.8 million people above the established threshold.

The market situation in 2025 was characterized by a lower inflation rate, which remained at or below 3%. However, in August 2026, prices began to rise, increasing by 3.4% over the last 12 months. Rising oil prices also raise concerns: the price of Brent crude oil once again exceeded $100 per barrel, and the cost of diesel fuel reached a record $6 per gallon. Household debt continues to grow, amounting to $18.8 trillion in the second quarter, with 4.7% of debt in various stages of delinquency. Amid such economic challenges, the Federal Reserve must closely monitor the state of the economy, considering that the unemployment rate remains at 4.1%. The decision on the interest rate will be announced on Wednesday, and the next update on household income is expected only in September 2027.

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