Good Question: Who sets the federal poverty level? – wkyt.com

Federal Poverty Measurement and its Alignment with Sustainable Development Goal 1

Defining the Poverty Line in the United States

The United States Department of Health and Human Services is the designated federal body responsible for annually setting the federal poverty guidelines. These guidelines are a critical tool in the national effort to address Sustainable Development Goal 1 (SDG 1): No Poverty. For the current year, the poverty guideline for a four-person household is established at $32,150. This figure serves as a primary indicator for assessing economic hardship and targeting interventions aimed at eradicating poverty in all its forms.

Historical Context and Methodological Framework

Origins of the Poverty Metric

The foundation of the current poverty measurement system dates back to the 1960s. The methodology was developed by Mollie Orshansky, a statistician at the Social Security Administration. Her work was pivotal in creating a quantifiable measure for poverty based on prevailing economic conditions.

• The original formula was based on the cost of a minimally adequate food diet, multiplied to establish an income threshold.
• Orshansky defined these thresholds as a measure of “income inadequacy,” establishing a baseline for what is considered insufficient for basic living standards, a core concept of SDG 1.

Current Calculation and Programmatic Application

The contemporary formula for determining the poverty guidelines adapts Orshansky’s original methodology by incorporating the Consumer Price Index to account for inflation. These guidelines are instrumental in administering federal aid programs that directly support multiple Sustainable Development Goals.

1. The guidelines, or multiples thereof, determine eligibility for various social safety net programs.
2. A family’s income relative to these levels dictates their qualification for assistance.

Examples of programs linked to the guidelines include:

• Supplemental Nutrition Assistance Program (SNAP): Directly addresses SDG 2: Zero Hunger by providing food-purchasing assistance to low-income people.
• Low Income Home Energy Assistance Program (LIHEAP): Supports SDG 7: Affordable and Clean Energy by assisting families with energy costs.

Distinctions in Poverty Measurement

Guidelines vs. Thresholds

It is important to distinguish between the poverty guidelines issued by the Department of Health and Human Services and the poverty thresholds used by the U.S. Census Bureau. While the guidelines are primarily for administrative purposes to determine program eligibility, the thresholds are used for statistical purposes, such as calculating the number of people in poverty. Both metrics, however, are fundamental to monitoring national progress toward achieving SDG 1.

Critical Analysis and Implications for Sustainable Development

Challenges in Achieving SDG Targets

Several researchers and policy analysts argue that the current methodology for calculating the poverty guidelines is outdated and may hinder progress toward achieving the Sustainable Development Goals. The primary criticism is that the formula’s reliance on food costs no longer reflects the economic realities of modern households.

• The formula’s foundation in 1960s-era food expenditure does not account for the significant rise in other essential costs.
• Housing, in particular, now constitutes a much larger proportion of a family’s budget than it did decades ago.

This discrepancy suggests that the current poverty guidelines may inaccurately represent the scope of poverty, potentially excluding individuals and families from necessary support. An inaccurate poverty measure poses a significant challenge to fully realizing SDG 1 (No Poverty) and SDG 10 (Reduced Inequalities), as it may fail to identify all populations in need. Furthermore, by not adequately weighting housing costs, the current system overlooks a key component of SDG 11 (Sustainable Cities and Communities), which includes targets for access to adequate and affordable housing.

Analysis of Sustainable Development Goals in the Article

1. Which SDGs are addressed or connected to the issues highlighted in the article?

The article primarily addresses issues related to the following Sustainable Development Goals (SDGs):

• SDG 1: No Poverty

  The entire article is centered on the concept of poverty, specifically how it is defined and measured in the United States through the “federal poverty level.” It discusses the origins of this measurement, its application, and its criticisms, all of which are fundamental to the goal of ending poverty.

• SDG 10: Reduced Inequalities

  The article connects the poverty guidelines to eligibility for social aid programs. These programs are key policy instruments for reducing economic inequality within a country by providing a safety net for low-income families. The definition and application of the poverty line are therefore directly linked to efforts to reduce inequality.

2. What specific targets under those SDGs can be identified based on the article’s content?

Based on the article’s discussion of national poverty measurement and social aid programs, the following specific SDG targets can be identified:

1. Target 1.2: By 2030, reduce at least by half the proportion of men, women and children of all ages living in poverty in all its dimensions according to national definitions.

   The article is exclusively about the “national definition” of poverty in the U.S. It explains that the “poverty threshold is the formula used by the Census Bureau to determine how many people are living in poverty.” This process of defining and counting the poor is the first step in tracking progress toward reducing poverty as outlined in this target.

2. Target 1.3: Implement nationally appropriate social protection systems and measures for all, including floors, and by 2030 achieve substantial coverage of the poor and the vulnerable.

   The article explicitly states that the federal poverty guidelines “determine if families are eligible for multiple aid programs, such as SNAP or LIHEAP.” These programs are examples of “nationally appropriate social protection systems.” The poverty line serves as the mechanism for implementing these systems and ensuring coverage for the poor, directly aligning with the objective of this target.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

Yes, the article mentions or implies information that corresponds to official SDG indicators used to measure progress:

• Indicator 1.2.1: Proportion of population living below the national poverty line, by sex and age.

  This indicator is directly implied when the article states that the “poverty threshold is the formula used by the Census Bureau to determine how many people are living in poverty.” The article also provides the specific national poverty line for a certain household size: “The current poverty guideline for a family of four is $32,150.” This figure is the threshold used to calculate the proportion of the population living in poverty.

• Indicator 1.3.1: Proportion of population covered by social protection floors/systems…

  This indicator is implied by the article’s statement that the poverty guidelines are used to “determine if families are eligible for multiple aid programs, such as SNAP or LIHEAP.” The process of determining eligibility and subsequent enrollment in these programs is how the coverage of social protection systems is measured. The article highlights the critical role of the poverty line in this measurement process.

4. Summary Table of SDGs, Targets, and Indicators

Source: wkyt.com