Federal Poverty Level (FPL)

Federal Poverty Level (FPL)

What the FPL is

The Federal Poverty Level (FPL) is an annual income guideline published by the U.S. Department of Health and Human Services. It estimates the minimum income a household needs for basic necessities—food, housing, utilities, transportation, and clothing—and is used to determine eligibility for many federal and state assistance programs.

The FPL is distinct from the poverty threshold used by the U.S. Census Bureau. The Census Bureau’s poverty threshold is a statistical measure of poverty; HHS uses that data to publish the poverty guidelines (the FPL) used for program eligibility.

How the FPL is determined

• The FPL is issued annually and adjusted for inflation.
• Guidelines vary by household size and by region (higher guidelines for Alaska and Hawaii to reflect higher costs of living).
• Some agencies compare pre-tax income to the FPL; others use after-tax income. Programs may apply percentage multiples of the FPL (for example, 100%, 138%, 150%, 400%) to set eligibility limits.

2025 guideline examples (contiguous U.S.)

• 1-person household: $15,650
• 2-person household: $21,150
• Additional family member: add $5,500 per person

Regional adjustments (per additional family member in 2025):
– Alaska: add $6,880 per additional person
– Hawaii: add $6,330 per additional person

Example: A three-person household in the contiguous U.S. = $21,150 + $5,500 = $26,650.

FPL versus poverty threshold

• Poverty threshold: a statistical definition of poverty produced by the Census Bureau using pre-tax income; used to estimate how many people are living in poverty.
• FPL (poverty guidelines): HHS’s simplified, practical guidelines derived from the threshold to determine program eligibility.

How programs use the FPL

Agencies set eligibility by comparing household income to the FPL or to a percentage multiple of it. Common program uses include:
– Medicaid/CHIP: many states use 138% of the FPL as an eligibility cutoff.
– Example: 138% × $15,650 (single-person guideline) = $21,597.
– Premium tax credits for Health Insurance Marketplace plans: often available between 100% and 400% of FPL (program rules and ranges can change).
– SNAP: one eligibility test is net household income at or below 100% of the FPL (net income = total income minus allowable deductions such as medical costs, dependent care, and shelter).
– Other programs (e.g., utility assistance, housing vouchers, school lunch programs) commonly use thresholds like 100%, 150%, or other multiples of FPL.

To calculate a household’s percentage of FPL: (household income ÷ poverty guideline) × 100.

Why Alaska and Hawaii differ

Alaska and Hawaii have higher poverty guidelines to reflect higher living costs. Separate adjustment practices have been used since the 1960s.

How many people live in poverty

According to the Census Bureau’s most recent data, the official poverty rate was 11.1%, representing roughly 36.8 million people.

Bottom line

The FPL is a practical, annually adjusted income guideline used to determine eligibility for many public benefit programs. It varies by household size and region and should not be confused with the Census Bureau’s poverty threshold, which is a statistical measure of poverty. Programs apply the FPL differently—using raw guidelines or percentage multiples—so eligibility depends on both income and specific program rules.

Sources

• U.S. Department of Health and Human Services — Poverty Guidelines
• U.S. Census Bureau — Poverty statistics
• Centers for Medicare & Medicaid Services / Healthcare.gov — program eligibility and premium tax credits
• U.S. Department of Agriculture — SNAP eligibility