The Annie E. Casey Foundation released its annual Supplemental Poverty Measure (SPM) data, along with a 10-year update examining economic opportunity among children and families in the U.S. for housing, health care, and child care, as well as the benefits of supports such as the picture of financial well-being than the outdated Official Poverty Measure (OPM) by accounting for modern expenses, regional differences in cost of living, and the impact of public assistance programs. It factors in expenses related to housing, health care, and child care, as well as the benefits of supports like the Earned Income Tax Credit, Child Tax Credit, SNAP, Social Security, Supplemental Security Income, and housing subsidies. This offers a broader view of how families are faring across the country while highlighting how public programs reduce child poverty and strengthen family stability.
Nationally, the SPM child poverty rate fell to a record low of 5% in 2021 when federal supports expanded during the COVID-19 pandemic, but rose to 13% in 2024 after those temporary measures expired. Without public assistance, the rate would nearly double at 25%, meaning 8.5 million more children would be living in poverty. Consistent with national trends, Pennsylvania’s child poverty rate dropped to 6.5% from 2019-2021, then climbed back up to nearly 11% in recent years.
These findings demonstrate how effective economic policies are at lifting families out of poverty, while underscoring the urgent need to sustain funding for essential programs. Poverty not only undermines children’s development and long-term well-being; it also costs the nation an estimated $1 trillion each year in lost productivity and higher health care spending. The SPM remains one of the clearest tools available to help families, communities, and policymakers understand the impact of public programs and the high cost of failing to maintain them.