Historic Decline in U.S. Poverty Amid Record Household Income in 2025

The U.S. poverty rate fell to a record low in 2025, while median household income reached an all-time high, according to the Census Bureau. With 34.5 million people living in poverty, the rate dropped to 10.2%, despite debates over federal spending cuts. Child poverty reached a historic low of 13.4%.

The United States recorded its lowest poverty rate on record in 2025, paired with a rise in median household income to unprecedented heights, the Census Bureau announced on Tuesday. The milestone reduction to 10.2% lifted 34.5 million Americans above poverty lines, marking a second straight year of declines.

The positive trend, revealed amidst ongoing debates about the impacts of federal spending cuts on safety-net programs, saw the median household income surge by 2.6% to $87,460. Families of four faced poverty if their income was less than $32,649. Notably, child poverty also fell to 13.4% — an all-time low.

Additionally, despite near-historic lows in uninsured rates, 7.9% of the population, approximately 26.7 million people, lacked health coverage at some point in 2025, consistent with the previous year's figures, the bureau indicated.