Rising Poverty and Falling Incomes: The Impact of Aid Cuts and Economic Challenges

The poverty rate in the United States soared to 12.4% in 2022, the largest one-year jump on record, as federal aid programs expired and living costs rose. Poverty among children more than doubled, reaching 12.4% from a record low of 5.2% the previous year. The increase in poverty reversed two years of large declines driven by pandemic safety net programs. Median household income fell 2.3% to $74,580, adjusted for inflation, due to the impact of rising prices. The poverty threshold also rose sharply, contributing to financial hardship for many families.