Federal Poverty Level - FPL

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What is the 'Federal Poverty Level - FPL'

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The report provides an estimate of the number of people that are poor; the percentage of people living below the poverty level; the poverty distribution by age, sex, ethnicity, location, etc. The Department of Health and Human Services HHS uses this report to set a poverty guideline on who should be eligible for certain federal programs. The information on the annual report shows the total cost needed by the average person per year to cover basic necessities like food, utilities, and accommodation.

This number is adjusted annually for inflation. The FPL varies according to the size of the family and their geographical location within the country. For example, Alaska and Hawaii have higher poverty levels since the cost of living in these regions is higher. The table below shows the federal poverty guidelines for household sizes by region.

When determining an individual's or a family's eligibility for receiving benefits, some government agencies compare before-tax income to the poverty guidelines, while others compare after-tax income. Some federal agencies and programs use some percentage multiple of the FPL to define income limits and to set eligibility criteria for households. To calculate percentage of poverty level, divide income by the poverty guideline and multiply by Note that poverty level is different from poverty threshold.

The poverty threshold is another federal poverty measure that actually defines what poverty is and provides statistics on the number of Americans living in poverty. The data is created by the US Census Bureau which uses pre-tax income as a yardstick to measure poverty.

What is the 'Federal Poverty Level - FPL' The Federal Poverty Level FPL , or the "poverty line" is an economic measure that is used to decide whether the income level of an individual or family qualifies them for certain federal benefits and programs.

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