Poverty – Healthy People 2030 | health.gov

The United States measures poverty based on how an individual’s or family’s income compares to a set federal threshold.1 For example, in the 2021 definition, people are considered impoverished if their individual income is below $12,880 or their household income is below $26,500 for a family of 4.2 After 5 consecutive years in decline, the U.S. poverty rate increased to 11.4 percent in 2020, or a total of 37.2 million people.3 

Poverty often occurs in concentrated areas and endures for long periods of time.1 Some communities, such as certain racial and ethnic groups, people living in rural areas, and people with disabilities, have a higher risk of poverty for a myriad of factors that extend beyond individual control.1,4–8 For example, institutional racism and discrimination contribute to unequal social and economic opportunities.4 Residents of impoverished communities often have reduced access to resources that are needed to support a healthy quality of life, such as stable housing, healthy foods, and safe neighborhoods.1,4,9 Poverty can also limit access to educational and employment opportunities, which further contributes to income inequality and perpetuates cyclical effects of poverty.1  

Unmet social needs, environmental factors, and barriers to accessing health care contribute to worse health outcomes for people with lower incomes.10,11 For example, people with limited finances may have more difficulty obtaining health insurance or paying for expensive procedures and medications.12 In addition, neighborhood factors, such as limited access to healthy foods and higher instances of violence, can affect health by influencing health behaviors and stress.12 

Across the lifespan, residents of impoverished communities are at increased risk for mental illness, chronic disease, higher mortality, and lower life expectancy.9,13–17 Children make up the largest age group of those experiencing poverty.18,19 Childhood poverty is associated with developmental delays, toxic stress, chronic illness, and nutritional deficits.20–24 Individuals who experience childhood poverty are more likely to experience poverty into adulthood, which contributes to generational cycles of poverty.25 In addition to lasting effects of childhood poverty, adults living in poverty are at a higher risk of adverse health effects from obesity, smoking, substance use, and chronic stress.12 Finally, older adults with lower incomes experience higher rates of disability and mortality.6 One study found that men and women in the top 1 percent of income were expected to live 14.6 and 10.1 years longer respectively than men and women in the bottom 1 percent.26

Poverty is a multifaceted issue that will require multipronged approaches to address. Strategies that improve the economic mobility of families may help to alleviate the negative effects of poverty.27–29 For example, tax credits such as the Earned Income Tax Credit and Child Tax Credit alleviate financial burdens for families with lower and middle incomes by reducing the amount of taxes owed.30 In addition, federal social assistance programs are designed to provide safety net services and specifically benefit individuals and families with lower incomes.31 Two of the nation’s largest social assistance programs are Medicaid, which provides health coverage, and the Supplemental Nutrition Assistance Program (SNAP), which provides food assistance. Medicaid and SNAP serve millions of people each year and have been associated with reductions in poverty along with overall health benefits.32,33 In order to reduce socioeconomic inequality, it may also be important to address factors that are associated with the health status of poor communities.27 Additional research and interventions are needed to address the effects of poverty on health outcomes and disparities.