Poverty Line Act of 2025

This bill changes how the federal poverty line is set. Instead of a one-size-fits-all number, it uses local costs and updates at least once a year. It adds up common expenses like rent, food, clothing, phone and internet, childcare, and health care, with adjustments for family size. The number will vary by state and county, and there will be a public online tool to look up your area. The goal is to reflect real living costs and help more people qualify for help. The line cannot be set lower than today’s level, and if you move, your eligibility will not drop for two years just because your new area has a lower line.

Many programs use the poverty line to decide who gets aid, like SNAP, CHIP, and school meals. Changing the line could affect who qualifies for these programs. States may also choose a higher limit, up to 125%, for a major community services program. The new system starts three years after the bill becomes law, and the government will review it every four years.

Key points:

• Who is affected: Families and individuals applying for programs that use the poverty line (SNAP, CHIP, school meals), and the state and local agencies that run them.
• What changes: Poverty line based on local costs for rent, basic goods, childcare, and health care; updated at least yearly; online lookup tool; cannot drop below current levels; two-year protection after moving; states can set a higher limit for community services grants.
• When: Takes effect three years after enactment; a report on affected laws is due within one year after that; reviews at least every four years after.