Key facts
- Median household income reached a record $87,460 in 2025.
- Poverty rates and poverty gaps declined between 1967 and 2023.
- Deep poverty and its gap showed little improvement over the same period.
- Safety net program cuts enacted in 2025 are expected to increase poverty rates.
Median household income in the United States reached a record $87,460 in 2025, according to annual data from the Census Bureau. However, analysis indicates that poverty rates remained stable prior to significant cuts to safety net programs enacted in 2025. These cuts, part of the One Big Beautiful Bill Act (OBBBA), are anticipated to reverse previous gains and increase poverty and deep poverty rates.
Research from The Hamilton Project indicates that between 1967 and 2023, poverty rates and poverty gaps declined substantially, largely due to the expansion of social programs rather than economic growth. The paper highlights that deep poverty, defined as living below 50 percent of the poverty line, and the associated poverty gap saw considerably less improvement over this period. The analysis also points out that these poverty trends have not been uniform, with concerning outcomes for individuals aged 18-64 who have minimal earnings and do not live with children. The study's findings end in 2023 and do not account for the impact of the 2025 safety net cuts.