Americans' incomes rose and poverty fell in 2025, Census Bureau says

• Poverty declines were concentrated among families with children and working-age households, while an alternative poverty measure accounting for social safety net programs remained unchanged
• The data predates recent economic shifts including the Iran war and does not reflect current inflation trends, with the CPI showing 3.4% annual price increases in August and mortgage rates exceeding 7%
• The Congressional Budget Office projects SNAP spending will fall by $211 billion through 2035 due to Republican tax-and-policy legislation that tightened eligibility for low-income assistance programs

SUMMARY

The Census Bureau reported that real median household income in the U.S. rose 2.6% to $87,460 in 2025, while the official poverty rate declined to 10.2% from the previous year. The poverty threshold for a family of four stood at $32,970.

Treasury Secretary Scott Bessent highlighted the data during House testimony, calling them "several inconvenient facts" for the administration's opponents. The improvements appear driven by a strengthening labor market, with poverty declines concentrated among working-age families and those with children rather than retirees.

However, an alternative poverty measure accounting for social safety net benefits remained unchanged and may face pressure from the "Big, Beautiful Bill" enacted in summer 2025. This Republican tax-and-policy law reduced taxes for some working families but tightened restrictions on low-income assistance programs. The Congressional Budget Office projects SNAP (food stamp) spending will fall $211 billion through 2035 due to stricter eligibility requirements.

The data release coincides with a Federal Reserve meeting to determine interest rate policy amid ongoing inflation concerns. Consumer prices rose 3.4% year-over-year in August, while 30-year mortgage rates exceeded 7%. The Census data covers 2025 and doesn't reflect recent economic changes since the Iran war began.

Democrats criticized the administration over high gas prices and economic pressures during the hearing. Fed Chairman is weighing rate increases to combat inflation against the risk of weakening economic growth, noting that price increases disproportionately affect lower-income earners. The Fed's rate decision is scheduled for Wednesday afternoon.