Federal Poverty Level (FPL)

Search Dictionary

Definition of 'Federal Poverty Level (FPL)'

The Federal Poverty Level (FPL) is the minimum income that a family or individual needs to maintain a basic standard of living. It is used to determine eligibility for a variety of government programs, such as food stamps, Medicaid, and housing assistance.

The FPL is updated annually by the U.S. Census Bureau. The 2023 FPL is $13,590 for a single person and $27,750 for a family of four.

The FPL is based on the cost of a nutritionally adequate diet. It is calculated by multiplying the cost of a low-cost food plan by a factor that takes into account family size and composition. The factor is adjusted for geographic differences in the cost of living.

The FPL is a controversial measure. Some people argue that it is too low and does not reflect the actual cost of living. Others argue that it is too high and that it discourages people from working.

Despite its limitations, the FPL is an important tool for determining eligibility for government programs. It is also used to track poverty rates in the United States.

The FPL is not the only measure of poverty. Other measures include the Supplemental Poverty Measure (SPM) and the Census Bureau's poverty threshold. The SPM is a more comprehensive measure of poverty that takes into account factors such as housing costs and medical expenses. The Census Bureau's poverty threshold is a simple measure that is based on the income of a family or individual.

The FPL is an important tool for understanding poverty in the United States. It is a useful measure for determining eligibility for government programs and for tracking poverty rates. However, it is important to be aware of its limitations.

Do you have a trading or investing definition for our dictionary? Click the Create Definition link to add your own definition. You will earn 150 bonus reputation points for each definition that is accepted.

Is this definition wrong? Let us know by posting to the forum and we will correct it.