Census Bureau Reports 2025 Income Growth and Poverty Decline Amid Safety Net Reductions
The Census Bureau's annual report shows median family income rose 2.6% in 2025 to $87,460, while the official poverty rate fell from 10.7% to 10.2%. Health insurance coverage remained stable. However, recent federal cuts to SNAP and enhanced ACA subsidies, along with pending stricter Medicaid work requirements, are expected to reverse these gains in future years. The supplemental poverty measure, which accounts for government benefits, showed 13.1% of Americans in poverty — unchanged from 2024.
Medicaid work requirements and safety net cuts enacted in the 2025 tax package will directly affect state Medicaid enrollment and coverage rates beginning in 2027, with implications for state budgets, health plan enrollment, and provider reimbursement.
Finance · Managed Care
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