Two Ways the U.S. Census Bureau Measures Poverty to Capture Clearer Picture of Poverty in America

DATA USER NOTE:

On July 17, 2026, the Bureau of Labor Statistics re-released SPM thresholds for 2019-2024 following the discovery of coding errors. The U.S. Census Bureau will publish revised SPM poverty rates using these updated thresholds prior to the release of the annual poverty report in September. Refer to BLS statement and Census statement for more information.

There were 37.3 million people in poverty in 2020, according to the official poverty measure. In contrast, there were 29.8 million people in poverty that same year, according to the Supplemental Poverty Measure.

While these measures may seem at odds with each other, they each present a different angle of poverty in the United States.

In recognition of National Poverty in America Awareness Month this month, the U.S. Census Bureau is highlighting two poverty measures it uses to capture a clearer picture of poverty and equity in the United States.

The official poverty measure has remained mostly unchanged since the mid-1960s, but the SPM was designed to keep pace with changes in data, methods, and new research.

The first — the official poverty measure first published in the mid-1960s — is based on cash resources.

The second — the Supplemental Poverty Measure (SPM) — includes both cash and noncash benefits and subtracts necessary expenses (such as taxes and medical expenses).

The 2020 SPM rate of 9.1%, the most recent available, was the lowest since the measure was first published in 2009, and the first time the SPM rate was lower than the official poverty rate.

Differences between Poverty Measures

The official poverty measure has remained mostly unchanged since the mid-1960s, but the SPM was designed to keep pace with changes in data, methods, and new research.

The table below shows a detailed comparison of major concepts between the two measures. (The history of poverty measures in the United States infographic, “How the U.S. Census Bureau Measures Poverty,” and this blog on the difference between SPM and official poverty measuresprovide more details.)

Frances Chen is a survey statistician in the Census Bureau’s Poverty Statistics Branch.

Kalee Burns is an economist in the Census Bureau’s Poverty Statistics Branch.

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