The federal poverty level (FPL) is an annual income threshold used to determine eligibility for certain government assistance programs in the United States. The U.S. Census Bureau computes poverty thresholds used to measure the rates of poverty among US citizens. However, the Federal Poverty Level (FPL) is published by the Department of Health and Human Services (HHS). The FPL determines the eligibility of households for certain federal and state assistance programs such as housing vouchers, Medicaid, and the Children’s Health Insurance Program (CHIP).

The FPL is adjusted yearly and is an important factor in determining whether an individual or family can access certain benefits. The FPL varies based on a variety of factors including household size and geographic location. For example, the poverty threshold for a single adult living in the mainland United States is an annual income of $12,490, while a family of four requires a minimum annual income of $26,200 to be considered to be “at” the poverty line.

The FPL is also used to calculate eligibility for the Supplemental Nutrition Assistance Program (SNAP) and other food assistance programs, as well as Head Start. Households with incomes below the threshold may be eligible for a range of government assistance benefits, such as subsidized housing, access to Medicaid and CHIP, and tax credits. Additionally, some states use the FPL to determine eligibility for the Temporary Assistance for Needy Families (TANF) program.

The FPL is updated each year by the federal government in an effort to keep pace with inflation and other changes in the economy. The FPL is calculated using the Consumer Price Index, a measure of inflation, as well as data from the U.S. Census Bureau. The number of people living in poverty in the United States has dramatically increased in the last decade and was estimated at 37.1 million people in 2020. The 2021 FPLs are 5.3% higher than the 2020 FPLs, which reflects the 3.2% increase in the Consumer Price Index over the last year.

The federal poverty level serves as an important marker of need, and a starting point for determining eligibility for government assistance programs. It is intended to ensure that individuals and families in need have access to resources, as well as basic services and safety-net programs. While the FPL is not an exact representation of poverty in the U.S., and does not take into account other factors such as cost of living and regional income disparities, it serves as an important guide for identifying and helping those in need.