Redefining Poverty
E X A M I N A T I O N O F T H E F E D E R A L P O V E R T Y L E V E L
The U.S. government’s definition of the poverty level threshold fluctuates with economic tides, federal food plan costs, inflation, and many other factors. This timeline details the origin and evolution of the federal poverty level over time.
Poverty Level Development
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Informed by the works of Isabel Eaten and W. E. B. Dubois, who researched poverty in the U.S (Fisher, 1992), Social worker and economic equality advocate, Robert Hunter, published the first known survey of America's poor population (Hasan. 2018; Mortell & Hanson-Turton, 2014.)
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In 1918, a tentative budget and “American subsistence level” (Fisher, 1992), was brought to the Federal government by William F. Ogburn. While this effort was recognized as an initial step in establishing a statistically backed social welfare policy, the solution was imperfect. Ogburn’s report based the “subsistence level” on a strict assessment of physical functioning without any consideration for social, educational, or comfort-based needs of individuals. The final dollar amounts included in his report were furthermore based on the needs of a family of five (Fisher, 1992).
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The Works Progress Administration develops the federal "emergency budget", a public assistance program for Americans struggling after the war (Fisher, 1992.)
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Lyndon B. Johnson's administration created the Office of Economic Opportunity (OEO) in reaction to the controversial Moynihan report on poverty (Bates, 2013.) Mollie Olshansky, an economist at the Social Security Administration, collaborated with the OEO to develop the first federally adopted poverty level formula (Fisher, 1992.) The figure was calculated based on the dollar amount required to attain a certain number of calories to survive (ibid). Ultimately the USDA ratifies the first established poverty level.
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In light of changes in the food industry and its distribution of high in fat, high in calorie, and high in sugar cheap foods, the 1964 poverty level became woefully inadequate to help those struggling survive or get out of poverty.
Under the Obama Administration, the Census Bureau develops a Supplementary Poverty Level and an Alternative Poverty Leve which are measures that calculate the values of non-cash government benefits, taxes, and environmental factors (US Census Bureau, 2017.)
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In 2019, the Trump administration announced plans to lower the poverty level threshold to decrease the number of people receiving government aid (Fessler, 2019). In late September 2019, Congresswoman Alexandria Ocasio Cortez began campaigning to raise the level to be more inclusive (Inskeep, 2019.)
The federally funded public assistance programs are enforced by several agencies that utilize the federal poverty level (FPL) as a requirement of applicants' eligibility, strengthening and reinforcing the policy. Below are the agencies that reinforce FPL standards and their corresponding legislation that codified these practices.
Governance
SOCIAL SECURITY ADMINISTRATION
Social Security Act Amendments Of 1965 (Medicaid Act Of 1965)
U.S. DEPT. OF HEALTH & HUMAN SERVICES
The Personal Responsibility and Work Opportunity Reconciliation Act Of 1996
U.S. DEPT. OF HEALTH & HUMAN SERVICES
Balanced Budget & Emergency Deficit Control Act Of 1984;
H.R. 2. Agriculture & Nutrition Act Of 2018
U.S. DEPT. OF HOUSING & URBAN DEVELOPMENT
The Housing Act Of 1937 (The Wagner-Steagall Act);
Quality Housing & Work Responsibility Act In 1998
Funding Landscape
Over 32% of non-profit and charitable organizations’ revenue comes from FPL-related government expenditures. Raising the federal poverty level extends the reach of charitable and research efforts that help struggling Americans.
FED. ASSISTANCE PROGRAMS' GOVERNANCE
US Dept of Agriculture (SNAP), Social Security Administration, and the US Dept. of Health and Human Services
FAITH-BASED ORGANIZATIONS
Catholic Charities USA. Interfaith Worker Justice, Jewish Council for Public Affairs, and the Religious Action Center of Reform Judaism
RESEARCH INSTITUTIONS
Brookings Institution, Center for American Progress, and the Center on Budget and Policy Priorities
FEDERAL GRANTS & PRIVATE DONATIONS
Oxfam America, National Urban League, and the Southern Poverty Law Center
Funding Structure
Federal Government
MANDATORY SPENDING BUDGETS AWARD BLOCK GRANTS TO INDIVIDUAL STATES FOR THEM TO ALLOCATE TO THEIR RESPECTIVE PUBLIC ASSISTANCE PROGRAMS
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Supplemental Security Income (SS1)
Temporary Assist. for Needy Families (TANF)
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Supplemental Nutrition Assistance Program (SNAP)
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Section 8 Housing Low Income Home
Energy Assistance Programs (LIHEAP)
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Children's Health Insurance Program
Medicaid
Non-Profits
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PRIVATE FOUNDATIONS - Research grant providers
PUBLIC CHARITIES - Shelters; faith-based organizations; other
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CIVIC LEAGUES
POLICY & ADVOCACY
R E C O M E N D A T I O N S
Logic Model
SITUATION
The federal poverty level is set too low for current standards of living in America. Currently, a minimum wage worker that puts in 40 hours of week does not qualify for public assistance programs, and yet, cannot afford the basics needed to live.
GOALS
Research root causes of poverty to establish livable wages for specific to local areas.
Persuade policy makers to make legislative changes that expand public assistance and other safety nets for working Americans.
American Dream Reality
R E C O M E N D A T I O N S
The American Reality Project is an organization that pursues progressive action around poverty and income inequality in the United States by advancing evidence-based research, promoting public awareness, and advocating for policy level changes.
STICKY MESSAGE
American Dream Reality
ALTERNATIVES
Turn the American Dream into a reality
Making equity equitable
Equity shares
Liberty and income for all
References
•Bates, K. (2013). Moynihan Black Poverty Report Revisited 50 Years Later. Retrieved from https://www.npr.org/sections/codeswitch/2013/06/13/190982608/moynihan-black-poverty-report-revisited-fifty-years-later.
Benefits.gov. (2019). Temporary Assistance for Needy Families . Retrieved from https://www.benefits.gov/benefit/613#Eligibility_Checker.
Fessler, P. (2019). Trump Administration Considering Changes That Would Redefine The Poverty Line. Retrieved from https://www.npr.org/2019/05/09/721559472/trump-administration-considering-changes-that-would-redefine-the-poverty-line.
Fisher, G. (1997). From Hunter to Orshansky: an overview of (unofficial) poverty lines in the United States from 1904 to 1965. In From Hunter to Orshansky: an overview of (unofficial) poverty lines in the United States from 1904 to 1965. Washington, D.C.
Fisher, G. (1992). The Development and History of the Poverty Thresholds. Retrieved from https://www.ssa.gov/history/fisheronpoverty.html.
Hasan, J. (2018). Hunter, Robert. Retrieved from https://socialwelfare.library.vcu.edu/people/hunter-robert/.
Inskeep, S. (2019). Rep. Alexandria Ocasio-Cortez Wants America To Talk About Poverty. Retrieved from https://www.npr.org/2019/09/25/763793482/rep-alexandria-ocasio-cortez-wants-america-to-talk-about-poverty.
Mortell, M., & Hansen-Turton, T. (2014). Making strategy count in the health and human services sectors: lessons learned from 20 organizations and chief strategy officers. New York, NY: Springer Publishing Company, LLC.
Office of Human Services Policy, Office of Assistant Secretary for Planning and Evaluation, & U.S. Department of Human Services . (2016). Poverty in the United States: 50-Year Trends and Safety Net Impacts. Poverty in the United States: 50-Year Trends and Safety Net Impacts. Washington D.C.: ASPE.
US Census Bureau. (2017). Poverty: The History of a Measure. Retrieved from https://www.census.gov/library/visualizations/2014/demo/poverty_measure-history.html.