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NJ AR131

NJ AR131
Urges federal government to raise federal poverty line for public assistance programs.

summary

Introduced
05/02/2024
In Committee
09/19/2024
Crossed Over
Passed
10/28/2024
Dead
Signed/Enacted/Adopted
10/28/2024

Introduced Session

2024-2025 Regular Session

Bill Summary

This resolution urges the federal government to raise the federal poverty line for public assistance programs. The current federal poverty line was developed in the 1960s and was based on a household's ability to afford basic foodstuffs alone; it did not account for other living expenses such as housing, transportation, child care, and health care, which have all risen exponentially in price over the past sixty years. The federal government has not changed the original calculation for the poverty line since its inception, aside from adjusting for inflation. Consequently, nearly 53 million households cannot afford basic necessities such as food, housing, and health care, but only 37.9 million are officially recorded as living in poverty, as of 2022. The poverty threshold is used to determine eligibility for public assistance programs. As a result, the individuals and households who do not earn enough money to support their basic needs but do not meet the stringent limits of the current federal poverty line are without access to public assistance. Since 2020, the COVID-19 pandemic and the rampant rate of inflation have only worsened the cost-of-living crisis, increasing the financial burden on many poor Americans who cannot access social welfare. In addition, recent policies to raise the minimum wage across the country have had unintended consequences for low-wage earners who have lost access to public assistance in exchange for a marginal, and often insufficient, increase in pay, resulting in a benefits cliff. By raising the federal poverty line, the federal government can more accurately report the number of impoverished Americans and, therefore, expand access to public assistance programs for the individuals and households who need it. [CM1]This number increased from 51 million when I first researched and drafted this assignment in July 2023. [CM2]This number decreased from 38.1 million when I first researched and drafted this assignment in July 2023.

AI Summary

This resolution urges the federal government to update and raise the federal poverty line, which has remained largely unchanged since the 1960s and currently fails to accurately represent the economic challenges faced by low-income Americans. The current poverty line was originally calculated based only on food costs and does not account for modern expenses like housing, transportation, child care, and healthcare, which have dramatically increased over the past six decades. As a result, approximately 53 million households cannot afford basic necessities, yet only 37.9 million are officially classified as living in poverty, effectively preventing millions of struggling families from accessing critical public assistance programs like Medicaid and the Supplemental Nutrition Program. The resolution highlights that recent minimum wage increases have paradoxically created a "benefits cliff" where low-wage workers can lose essential social welfare support for minor income increases, potentially discouraging employment. By updating the federal poverty line, the government could more accurately assess economic hardship and expand access to vital social support programs, particularly in the context of ongoing economic challenges like the COVID-19 pandemic and high inflation rates.

Committee Categories

Health and Social Services

Sponsors (14)

Last Action

Filed with Secretary of State (on 10/28/2024)
(1 Companion Bills)

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Document Type Source Location
State Bill Page https://www.njleg.state.nj.us/bill-search/2024/AR131
Analysis - Statement AHU 9/19/24 https://pub.njleg.gov/Bills/2024/AR/131_S1.PDF
BillText https://pub.njleg.gov/Bills/2024/AR/131_I1.HTM
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