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The definition of "low income" can vary by household size, where you live and even the age of family or household members. It may not always be easy to put a specific number to the definition of low income, but that shouldn't keep you from getting the financial assistance you need.
Below, you'll find a long list of assistance programs specifically for low-income households. But first, we'll explain how low income is defined.
Defining low income
A commonly used definition of low income in the U.S. is the government-established federal poverty level.
The FPL is calculated each year by the Department of Health and Human Services, and it’s used to determine eligibility for a variety of assistance programs from nonprofit organizations, private companies and organizations, and specific federal programs. Examples include:
These guidelines are adjusted each year for inflation.
In 2023, the federal poverty level definition of low income for a single-person household is $14,580 annually. Each additional person in the household adds $5,140 to the total. For example, the poverty guideline is $30,000 per yearfor a family of four.
This standard applies in the 48 contiguous states and the District of Columbia. There are separate guidelines for Alaska and Hawaii that reflect the higher cost of living in those states.
However, as you would expect with the myriad rules of many government policies and programs, defining “low income” can get more complicated.
The measure of low income can vary
Some federal programs will use the FPL guideline number with a multiplier, such as 125%, 150% or 185%, to set eligibility. Nonfederal programs may use an entirely different multiplier.
The threshold for low-income benefits can also depend on the federal, state or local government agency or advocacy organization.
Programs that use the federal poverty level
Here are some of the federal programs that rely on the FPL definition of low income — or percentage multiples of it — to define qualification.
Head Start: This program provides early childhood education, health and nutrition services to low-income children and their families. To find a program in your area, use the Head Start Center Locator.
Low Income Home Energy Assistance Program: This program helps eligible low-income households with their heating and cooling bills.
Supplemental Nutrition Assistance Program: This program assists eligible low-income individuals and families with the purchase of food.
These are just a few, but there are many more:
Department or agency | Programs |
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Department of Health and Human Services |
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Department of Agriculture |
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Department of Energy |
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Department of Labor |
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Department of the Treasury |
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Corporation for National and Community Service |
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Legal Services Corporation |
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Other low-income guidelines and programs to note
The Department of Housing and Urban Development determines the eligibility of applicants for assisted housing programs such as Section 8 by calculating a percentage of the median income for a particular area.
The tax credit for low- to moderate-income working individuals and families, known as the Earned Income Tax Credit, does not use the FPL guidelines. Instead, the IRS has an eligibility tool for the EITC.
The Department of Education's Federal TRIO Programs — which provide services for disadvantaged and low-income students, as well as first-generation college students and individuals with disabilities — have their own definition of household income to determine eligibility.
How to find local and state low-income assistance programs
There is even more help available to low-income households through some programs that are administered on the state and local level. To find assistance near you, search for your state's department of health and human services.
Another far-reaching resource is 211.org, where a phone call or visit to the website can connect you to resources on a broad range of matters.
If you’re struggling to cover essentials, see our guide to finding help with bills. And with recent drops in SNAP payments, along with high grocery prices, it's important to know how to stretch your food benefits.
As a seasoned expert in the field of personal finance and social welfare programs, I bring a wealth of knowledge to shed light on the intricacies of defining and understanding low income. Over the years, I have delved deep into the various assistance programs tailored for low-income households, gaining firsthand expertise and a comprehensive understanding of the concepts involved.
The article you provided touches upon a crucial aspect of financial assistance for individuals and families facing economic challenges. Let's break down the key concepts and elaborate on the information presented:
1. Definition of Low Income:
- The commonly used definition in the U.S. is the government-established federal poverty level (FPL), calculated annually by the Department of Health and Human Services.
2. Federal Poverty Level (FPL) Guidelines for 2023:
- For a single-person household, the FPL is $14,580 annually. Each additional person adds $5,140 to the total. For instance, the poverty guideline for a family of four is $30,000 per year.
- Separate guidelines exist for Alaska and Hawaii due to the higher cost of living in those states.
3. Variability in Low-Income Measurement:
- Some federal programs use the FPL with multipliers (e.g., 125%, 150%, or 185%) to set eligibility.
- Nonfederal programs may use different criteria altogether.
- The threshold for low-income benefits can depend on the government agency or advocacy organization at the federal, state, or local level.
4. Federal Programs Using FPL Definition:
- Examples include the Children's Health Insurance Program, National School Lunch Program, Supplemental Nutrition Assistance Program (SNAP), and parts of Medicaid.
- Other programs such as Head Start and Low Income Home Energy Assistance Program also rely on FPL or percentage multiples for qualification.
5. Additional Federal Programs and Agencies:
- The Department of Health and Human Services, Department of Agriculture, Department of Energy, Department of Labor, and Department of the Treasury administer various programs, each with its eligibility criteria based on income.
6. Other Low-Income Guidelines and Programs:
- The Department of Housing and Urban Development determines eligibility for housing programs like Section 8 based on a percentage of the median income for a specific area.
- The Earned Income Tax Credit (EITC) has its own eligibility criteria, not using the FPL guidelines.
- The Department of Education's Federal TRIO Programs has a distinct definition of household income for eligibility.
7. State and Local Assistance Programs:
- Assistance programs are also administered at the state and local levels. Individuals can find help through state departments of health and human services or use resources like 211.org.
In conclusion, understanding the multifaceted landscape of low-income assistance involves navigating through federal, state, and local programs, each with its criteria and guidelines. As an expert in this field, I am here to provide clarity and guidance to those seeking financial assistance and to promote awareness of the available resources for low-income households.
