Press Release

Bread for the World Welcomes Review of Poverty Standards

Washington, DC, June 17, 2008 – Bread for the World welcomed New York City's new way of measuring poverty, noting that reviewing national poverty standards is the subject of a congressional hearing today by Rep. Jim McDermott (D-WA), chair of the Ways and Means Subcommittee on Income Security.  Read the Washington Post article, New York Mayor Offers New Poverty Gauge July 14.)

"We commend Mayor Michael Bloomberg for recognizing the need to modernize the way we measure poverty in this country, and with over eight million residents, New York City is in a great position to lead the way," said Rev. David Beckmann, president of Bread for the World. "We hope the hearing today will be the start of a national conversation that reviews how we define poverty in the United States."

The Bloomberg administration's new measure for gauging poverty levels takes into account the cost of housing, child care, and clothing – expenses which are not in the formula currently used by the federal government.  "The economic downturn has millions of families struggling to make ends meet and feed their families, and it is almost certainly pushing more Americans into poverty," said Rev. Beckmann.  "Measuring poverty in a way that more realistically reflects current demands on a family's budget is necessary to ensure that no family is left behind."

Beckmann said that the nation's current method of measuring poverty, with its assumption that food consumes a third of a family's budget, does not reflect today's realities.  According to the U.S. Department of Agriculture, less than 10 percent of a family's income was spent on food in 2007.  Over the past 50 years, food expenses have decreased while other living expenses such as healthcare, childcare, transportation, and housing have gone up.

Under the new model, the poverty threshold for a family of two adults and two children in New York City is an annual income of $26,138, compared with the current official level of $20,444. This new formula would mean the poverty rate in New York City would increase to 23 percent of the population, compared with the current official level of roughly 19 percent.  One in three New Yorkers age 65 or older will now be considered poor, up from one in five under the old system, largely because higher medical costs will be taken into account.  

Finally, the federal poverty standard does not account for geographic differences in the cost of living.  Poverty in New York City is defined as the same income level as poverty in Manhattan, Kansas. New York City officials hope that their new measurement of poverty will be adopted by other cities and states to reflect current realities and regional differences.

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Bread for the World is a collective Christian voice urging our nation's decision makers to end hunger at home and abroad. By changing policies, programs, and conditions that allow hunger and poverty to persist, we provide help and opportunity far beyond the communities where we live. www.bread.org