New data from the Census Bureau: U.S. poverty rate falls to a record low

WASHINGTON — The U.S. poverty rate fell to 10.2% in 2025, its lowest level since federal records began, while median household income reached a record $87,460, according to newly released Census Bureau data.

The figures have quickly become part of the political debate over the American economy, with the Trump administration highlighting the results as evidence of improving financial conditions for households.

Treasury Secretary Scott Bessent pointed to the poverty decline and record median income during congressional testimony, arguing that the latest figures demonstrate economic improvement under President Donald Trump.

However, the Census data describe economic conditions during calendar year 2025 and do not, by themselves, establish that any particular presidential policy caused the changes measured.

Poverty Reaches Historic Low

The official poverty rate declined by 0.5 percentage point from 2024, falling from 10.6% to 10.2%, according to the Census Bureau’s annual income and poverty report.

Approximately 34.5 million Americans were classified as living below the official poverty threshold in 2025, meaning millions remained economically vulnerable despite the nationwide decline.

The 2025 decline represented the second consecutive annual reduction in the official poverty rate, according to Reuters’ report on the Census release.

The official measure compares pretax money income with nationally established poverty thresholds that vary according to family size and the age of the household head.

For example, a family consisting of two adults and two children was considered below the official poverty line if its annual income fell below $32,649 in 2025.

Children Also Saw A Record

Child poverty declined particularly sharply, with the official poverty rate for children falling to 13.4%, the lowest level recorded by the Census Bureau.

The improvement means the share of American children living below the official poverty threshold declined despite continuing debates over household affordability, food costs and access to government assistance.

However, the official poverty measure does not capture every resource available to families, including several noncash government benefits that can substantially affect household living standards.

The Census Bureau therefore also publishes the Supplemental Poverty Measure, which considers taxes, medical expenses, work expenses and certain government benefits when assessing economic resources.

Unlike the official measure, the Supplemental Poverty Measure stood at 13.1% in 2025, showing that different definitions of economic hardship can produce significantly different results.

Household Income Hits A Record

Real median household income increased 2.6% in 2025, reaching $87,460 after adjusting for inflation, according to the Census Bureau.

That figure represents the highest median household income recorded by the Census Bureau since its income series began in 1967, although the longer-term increase remains modest.

The typical household’s inflation-adjusted income was only about 2.5% higher than in 2019, according to AP’s analysis, illustrating how dramatically inflation affected purchasing power after the pandemic.

Income growth was also uneven across households. The top 10% earned about $261,300 in 2025, while the bottom 10% earned slightly more than $20,000.

A Strong Number With Important Caveats

The new figures provide evidence of improving conditions on several headline measures, but they do not mean every American household experienced higher living standards during 2025.

The Census Bureau’s income statistics exclude some noncash benefits, including food assistance and Medicaid, meaning household resources can differ substantially from measured cash income.

At the same time, Reuters reported that policymakers are debating how federal spending reductions could affect safety-net programs that support lower-income Americans.

The latest statistics therefore offer a snapshot of the American economy during 2025 rather than a complete assessment of household financial security or the effects of policies introduced afterward.

The data also provide an important baseline for evaluating future economic changes, particularly as inflation, government spending, employment and household costs continue influencing Americans’ financial circumstances.

For now, the clearest takeaway is straightforward: official poverty reached a record low in 2025, median household income reached a record high, and child poverty also fell to its lowest recorded level.