The SPM also accounts for geographic variation in housing expenses when calculating poverty thresholds and includes federal and state taxes, work expenses, and medical expenses. This report presents estimates using the official poverty measure and the SPM for calendar year 2024.
The official poverty measure has remained mostly unchanged since it was introduced in the mid-1960s. In contrast, the SPM was designed to improve as new data and methods become available. This blog discusses the development of the SPM and differences between the two measures.
The SPM broadens the official poverty measure by accounting for government programs designed to assist low-income families that are not included in the official poverty measure while also including federal and state taxes and necessary expenses.
An analysis of three-year averages of poverty rates by state shows the official + rate was higher than the SPM rate in only 10 states — a notable change from 2023 when the three-year official + average topped the SPM rate in 32 states. This is largely due to the expiration of pandemic-era tax and noncash benefit program expansions, marking a return to pre-pandemic norms. The two poverty ...
The SPM, which accounts for noncash government assistance, increased to 12.9% in 2023, higher than pre-pandemic levels.
The SPM rate for 2017 was 1.6 percentage points higher than the official poverty rate of 12.3 percent (Figure 3). The percentage of individuals aged 65 and older with SPM resources below half their SPM threshold was 4.9 percent in 2017 (Figure 6).
The official poverty measure was developed in the mid-1960s, and it has remained mostly unchanged since then. In contrast, the SPM was designed to improve as new data, methods, and further research become available. This short blog will discuss the development of the SPM as well as contrast the two measures.