Bill Summary
The "Improving Federal Assistance to Families Act" aims to revise how the poverty line is measured in the United States to better reflect the basic needs of families and regional cost variations. Key provisions include:
1. **New Poverty Line Index**: The Bureau of the Census will create a "Regionally Adjusted Poverty Line" for each state, calculated annually using updated poverty thresholds and regional price parity, which accounts for local costs of living.
2. **Implementation**: The Secretary of Health and Human Services, in coordination with the Secretary of Housing and Urban Development, will determine which poverty line (the new regionally adjusted or the current one) reflects a higher poverty rate for each state. This will be used for administering federal programs, ensuring that those in need are accurately identified.
3. **Study on ALICE Measure**: Within two years, the Government Accountability Office (GAO) will study the ALICE (Asset Limited, Income Constrained, Employed) threshold to assess its effectiveness as a poverty measure compared to the traditional poverty line. The report will explore potential improvements and how it could be integrated into federal assistance eligibility criteria.
The legislation seeks to provide a more accurate and responsive framework for assessing poverty and determining eligibility for federal assistance programs, ultimately enhancing support for families in need.
Possible Impacts
Here are three examples of how the "Improving Federal Assistance to Families Act" could affect people:
1. **Increased Access to Assistance Programs**: By developing the Regionally Adjusted Poverty Line that more accurately reflects the cost of living in different states, families living in high-cost areas may find themselves qualifying for federal assistance programs that they previously did not qualify for under the traditional poverty line. This could provide more families with access to essential services such as food assistance, housing support, and healthcare subsidies, ultimately improving their overall quality of life.
2. **More Accurate Representation of Economic Hardship**: The new poverty line index would provide a more nuanced understanding of poverty across different regions. For individuals and families in states with a high cost of living, the modified thresholds might better reflect their economic realities. This could lead to increased policy attention and resources allocated to areas that are genuinely struggling, as data will show a more accurate picture of poverty levels.
3. **Potential Changes to Financial Eligibility for Tax Credits**: The legislation gives the Secretary of Health and Human Services the flexibility to use either the Regionally Adjusted Poverty Line or the current poverty line for determining eligibility for Premium Tax Credits under the Affordable Care Act. This flexibility could benefit low-income households, especially in states that have not expanded Medicaid. It ensures that these households do not lose access to crucial healthcare subsidies, thereby promoting better health outcomes and financial stability for families who might otherwise be left without support.
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 702 Introduced in House (IH)]
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119th CONGRESS
1st Session
H. R. 702
To modify the measure and use of the poverty line issued by the
Secretary of Health and Human Services to more accurately account for
the basic needs of families and regional costs of living.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
January 23, 2025
Ms. Sherrill introduced the following bill; which was referred to the
Committee on Oversight and Government Reform, and in addition to the
Committee on Ways and Means, for a period to be subsequently determined
by the Speaker, in each case for consideration of such provisions as
fall within the jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To modify the measure and use of the poverty line issued by the
Secretary of Health and Human Services to more accurately account for
the basic needs of families and regional costs of living.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Improving Federal Assistance to
Families Act''.
SEC. 2. NEW POVERTY LINE INDEX.
(a) In General.--The Bureau of the Census shall develop and publish
a new poverty line index to be measured separately for each State on an
annual basis and to be known as the ``Regionally Adjusted Poverty
Line''.
(b) Revisions.--The Regionally Adjusted Poverty Line shall be a
revised version of the most recent poverty line that, for each State--
(1) uses new poverty thresholds created by multiplying the
State's most recent poverty thresholds by its most recent
Regional Price Parity, divided by 100; and
(2) uses new poverty rates created by using the poverty
thresholds determined in paragraph (1) rather than each State's
current poverty thresholds to determine the percentage of
households that are below each State's poverty line.
SEC. 3. USE OF THE REGIONALLY ADJUSTED POVERTY LINE IN LIEU OF THE
POVERTY LINE.
The Secretary of Health and Human Services, in consultation with
the Secretary of Housing and Urban Development, shall--
(1) determine, for each State annually, which poverty line
index between the Regionally Adjusted Poverty Line as specified
in section 2 and the current poverty line has a higher poverty
rate for such State;
(2) issue, and publish in the Federal Register, for each
State, the poverty line index that has a higher poverty rate
for such State as specified in paragraph (1) in lieu of the
poverty line; and
(3) for each State--
(A) except as provided in subparagraph (B), use the
poverty line index that has a higher poverty rate for
such State as specified in paragraph (1) for
administrative purposes, including for determining
financial eligibility for certain Federal programs, in
lieu of the poverty line, and
(B) for the purpose of determining financial
eligibility for Premium Tax Credits under the
Affordable Care Act, have flexibility to use either the
Regionally Adjusted Poverty Line or the current poverty
line to ensure low-income households in States not
expanding Medicaid do not lose access to Premium Tax
Credits.
SEC. 4. GAO STUDY ON ALICE POVERTY MEASURE.
(a) In General.--Not later than 2 years after the enactment of the
enactment of this Act, the Comptroller General of the United States
shall submit to the Committee on Homeland Security and Government
Affairs of the Senate and the Committee on Oversight and Accountability
of the House of Representatives, a report containing the results of a
study on--
(1) the advantages and disadvantages of the ALICE threshold
as a measure of poverty and household material need relative to
the current poverty line, including any additional information
that the ALICE threshold provides to policymakers that is not
available from the current poverty line;
(2) any areas in which the ALICE threshold can be improved
to better measure household material need or improve upon the
current poverty line;
(3) how the Government can assist in the development and
publication of the ALICE threshold; and
(4) how, if at all, the ALICE threshold could be
incorporated into the financial eligibility criteria, both that
maintained by the Secretary of Health and Human Services and
that legislated by Congress, for certain Federal programs to
better meet the material need of households and improve access
to certain Federal programs.
SEC. 5. DEFINITIONS.
In this Act:
(1) Alice threshold.--The term ``ALICE threshold'' means
the Asset Limited, Income Constrained, Employed measure
developed by the United Way of Northern New Jersey as an
alternative to the poverty line that includes the regional
minimum cost of necessities including housing, child care,
food, transportation, healthcare, and taxes.
(2) Poverty line.--The term ``poverty line'' has the same
definition as under section 673 of the Community Services Block
Grant Act (42 U.S.C. 9902).
(3) Poverty threshold.--The term ``poverty threshold''
means the dollar amounts used by the Bureau of the Census to
determine a household's poverty line status.
(4) Regional price parity.--The term ``Regional Price
Parity'' means the difference in price levels between a State
and the national average, expressed as a percentage of the
overall national price level, as published by the Bureau of
Economic Analysis.
(5) State.--The term ``State'' means any State of the
United States, the District of Columbia, the Commonwealth of
Puerto Rico, the Virgin Islands, Guam, American Samoa, and the
Commonwealth of the Northern Mariana Islands.
SEC. 6. EFFECTIVE DATES.
Section 2 shall take effect 1 year after the date of the enactment
of this Act and section 3 shall take effect 3 years after the date of
the enactment of this Act.
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