2025 Poverty and Income Numbers Will Show How Affordability Crisis and H.R.1 Changes Drive Inequality

The following statement can be attributed to Wendy Chun-Hoon, president and executive director of the Center for Law and Social Policy (CLASP)

Washington, D.C., August 19, 2026—On September 15, the U.S. Census Bureau will release reports with national data on Income, Poverty, and Health Insurance for 2025. While we anticipate a slight rise in poverty across the board compared to the data from 2024, we know that next month’s numbers will serve as a bellwether for what’s coming.

The changes wrought by H.R.1, signed into law by President Trump in July 2025, are already taking effect in communities across the country. For example, Congress let the Affordable Care Act (ACA) tax credits expire last December when it passed H.R.1, pushing nearly three million people off their health insurance in early 2026. While the 2025 data don’t yet capture this drop in access to affordable health insurance for millions, we know that individuals and families are desperately struggling to pay for health care.

We should anticipate a rise in poverty for women, higher poverty for children of all races, and more poverty among immigrants, all driven by the many provisions in H.R.1 that are destabilizing families, such as the elimination of more than $200 billion in basic food assistance over the next decade. SNAP work requirements have also been tightened for elderly people and people with disabilities. Already, between October 2025 and February 2026, we’ve seen WIC participation decline by 250,000 people.

The administration’s relentless attacks on immigrants and their families will continue to have a chilling effect on access to the public benefit programs they are eligible for. This includes policymakers imposing significant eligibility restrictions on Medicaid, ACA, and SNAP for immigrants authorized to be in the U.S. In addition, immigration enforcement has created conditions in which workers lose wages and can fall into poverty if they stay home due to fear of ICE officers at workplaces.

While the administration and Congressional leaders have targeted immigrants in their slashing of social safety net programs, populations across the country are seeing their Medicaid, food assistance, and child care assistance gutted at the federal level in favor of funding military actions and aggressive immigration enforcement. We also know that last fall’s longest-ever government shutdown—a crisis manufactured by the White House and Congress—pushed countless people to the economic brink. Moreover, millions are living with the consequences of policy choices that have driven up inflation, driven down wages, and reduced funding for programs that meet basic needs. As a result, far too many people are taking on debt just to buy groceries and pay for the gas they need to commute to work.

We expect the September reports will show a wider gender pay gap and a rise in income inequality for Black households relative to white households. This phenomenon is largely driven by the disproportionate job losses experienced by Black women and the fact that it took Black women twice as long to find a job as white women in the second half of 2025. After attaining employment, Black women are paid less than their white peers, regardless of their educational level.

The Census reports will be much more than a look-back at the state of the country in 2025. Sadly, they will be a preview of the harm ahead for our communities because policymakers have chosen to enrich the wealthiest and finance a siege on immigrants over helping people meet their most basic, human needs. Poverty is the result of systemic failures, and our nation and the people who show up every day to make our economy work deserve better.