How to Adjust the Official Poverty Measure

Source: State Policy Reports, Vol. 37 no. 10, May 2019
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A recent request by a federal agency is purportedly intended to gather information to inform a future decision, but some observers see a wolf in sheep’s clothing.

Related:
Trump May Redefine Poverty, Cutting Americans From Welfare Rolls
Source: Justin Sink, Bloomberg, May 6, 2019

• OMB says in regulatory filing it may recalculate poverty level
• Switch to so-called chained CPI would slow growth of poverty

FAQ: The Trump Administration’s Proposal to Lower the Federal Poverty Line
Source: Center on Budget and Policy Priorities, May 30, 2019

On May 6, the Office of Management and Budget (OMB) issued a notice requesting comments on changing the methodology for updating the federal poverty line for inflation. The notice floats the idea of updating the Census Bureau’s poverty thresholds using an alternative, lower measure of inflation than the traditional Consumer Price Index (known as the CPI-U) — either the “chained” CPI or the Personal Consumption Expenditures Price Index. This would result in lower poverty thresholds, with the gap between the current and proposed methodologies increasing each year….