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NJ ACR147

NJ ACR147
Urges President and Congress to enact "Poverty Line Act of 2023."


summary

Introduced
12/19/2024
In Committee
12/19/2024
Crossed Over
Passed
Dead
01/12/2026

Introduced Session

2024-2025 Regular Session

Bill Summary

This resolution urges the President and Congress to enact the "Poverty Line Act of 2023," which would update the way the federal government calculates the federal poverty guidelines by accounting for real costs and adjusting for regional differences. The federal poverty guidelines, more commonly known as the federal poverty level, are a measure of income issued annually by the United States Department of Health and Human Services which are used to determine an individual's or household's eligibility for certain State and federal programs and benefits. Despite the federal poverty level's benefit of providing a nationally recognized income threshold for determining who is poor, its shortcomings are well documented as it is not based on the current cost of basic household necessities, such as housing, utilities, childcare, transportation, and healthcare, and, except for Alaska and Hawaii, it is not adjusted to reflect cost of living differences across the United States. As a result, millions of struggling families across the country make too little to afford their basic needs, yet because the federal poverty line is so low, they are not eligible for safety net benefits. The changes to the federal poverty level calculation proposed in the "Poverty Line Act of 2023," would increase the access to programs, such as Medicaid, Supplemental Nutrition Assistance Program, and the Low Income Home Energy Assistance Program, which provide critical support to people during times of economic hardship. Notably, the bill would also ensure that the new methodology is reviewed at least once every four years to determine whether it is still reflective of what households need to meet their basic needs and to identify additional changes needed in the future. Ultimately, the enactment of the "Poverty Line Act of 2023" would provide that the determination of poverty in New Jersey and the United States reflects the current level of financial distress experienced by millions of American families, ensuring greater access to the vital government benefits that provide the necessary short- and long-term support and stability to allow for economic mobility.

AI Summary

This joint resolution urges the President and Congress to pass the "Poverty Line Act of 2023," which aims to modernize how the federal poverty guidelines are calculated. Currently, the federal poverty level is based on a method developed in the 1960s that primarily considers food costs and inflation, which no longer accurately reflects the financial challenges faced by modern American households. The proposed legislation would update the poverty calculation to account for current living expenses like housing, utilities, childcare, transportation, and healthcare, and adjust for regional cost of living differences. By doing so, the act would expand eligibility for critical safety net programs such as Medicaid, the Supplemental Nutrition Assistance Program (SNAP), and the Low Income Home Energy Assistance Program. The bill also includes a provision for reviewing the methodology every four years to ensure it remains responsive to household needs. According to the 2023 United for ALICE (Asset Limited, Income Constrained, Employed) report, while 11% of New Jersey households were considered in poverty, an additional 26% struggled to afford basic necessities, highlighting the importance of updating these guidelines to better reflect economic realities.

Committee Categories

Health and Social Services

Sponsors (1)

Last Action

Introduced, Referred to Assembly Aging and Human Services Committee (on 12/19/2024)

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