Living affordability advocates are pushing for a redefining of what it means to be impoverished in America.
The current federal poverty level was established in the 1960s and is outdated, according to United Way.
Under the federal poverty level, 11% of Connecticut families were financially insecure in 2023. United Way officials say that number should be closer to 40%.
In 2025, to qualify for Medicaid and certain federal social service programs, a family of two must not earn more than $21,150, according to the federal Department of Health and Human Services.
But, advocates like Lisa Tepper Bates, Chief Executive Officer of United Way of Connecticut say that income level leaves out families who are struggling.
“Eligibility for benefits are in large part keyed to the federal poverty line out of an understanding that the federal poverty line reflects who is struggling. It does not,” Tepper-Bates said. “We believe that the focal point of public policy should be geared to who is actually making what it takes to pay the true cost of living in that given economy, like Connecticut.”
United Way is pushing for the federal government to follow a model akin to the organization’s ALICE study, or Asset Limited Income Constrained Employed.
The ALICE model measures how many families are earning too much to qualify for federal assistance, but not enough to live comfortably.
Nationwide, about 42% of families live below the ALICE threshold. Forty percent of Connecticut families fall belong the ALICE threshold, according to the 2025 report.
“The federal poverty line tells you nothing more than who is the poorest of the poor in our country. For most Americans, what they most want to know is, what does it actually take to make ends meet?” Tepper-Bates said.
For income constrained families, housing costs are some of the biggest burdens, according to the report.
The 2025 report shows that 73% of all Connecticut renter households below the ALICE threshold were rent burdened, meaning they pay nearly a third or more of their income on rent and utilities.
Hundreds of people recently gathered at a conference in the historic Fontainebleau Miami Beach resort to discuss ways to increase options for income constrained families.
Angela Williams, Chief Executive Officer of United Way Worldwide, said systemic issues prevent families from earning enough to live comfortably.
“They don't always get ahead because they're held down by systems that offer just enough to keep them from drowning, but not enough to pull them out of the deep water and onto dry land,” Williams said.
ALICE families often have difficulty accessing transportation, higher education and childcare. Williams said ALICE families are unable to thrive.
“To be thriving means being able to afford rent and groceries, to afford medical care and child care, to meet all your basic needs while also being able to save money for retirement and to make the car payments and have a few extra dollars left over to get your child a gift for the holidays or their extracurricular activities at schools, to be able to enjoy life,” Williams said.
