Washington, D.C., September 15, 2026—Today’s release of the U.S. Census Bureau’s national Income, Poverty, and Health Insurance data for 2025 may be the last year of positive impact, as the prior administration’s policy choices taper off. Despite this, enormous income inequality persists.

In 2025, median household income increased 2.6 percent, to $87,460. Median earnings for women also increased by 3.2 percent; they now make 84 percent of what their male counterparts are paid. And 92.1 percent of the U.S. population had health insurance for at least some part of last year.

While these numbers may not seem concerning, a closer look reveals troubling trends and worrying indicators for future years. The median income didn’t rise enough to cover today’s inflation; indeed, when accounting for the effect of inflation in 2026, median income only rose less than one percentage point.

When income doesn’t keep up with inflation, the individuals and families most affected are those earning the least amount of money. This demographic is also disproportionately affected by the many provisions in H.R.1, which passed in July 2025, and that will further jeopardize economic security. We will not see the true impact of these provisions until next year’s numbers are released and as elements of these policies take full effect, but an estimated 4.5 million people lost SNAP coverage between July 2025 and May 2026, including approximately 1.5 million children.

Today’s data also showed that nearly eight million people were pushed into poverty due to health expenses. With millions more expected to lose Medicaid coverage because of H.R.1, the number of people who enter poverty due to higher out-of-pocket health care costs will also increase in the coming years.

“Many of the policies enacted in July 2025 through H.R.1 are on a long fuse, with just some of the massive cuts taking effect last year and many more on tap in the coming years. This means that the numbers we see today will only get worse in the future, including for children, women, immigrants, and people of color. We’re especially concerned about immigrants whose ability to work and access care without fear of immigration enforcement has already severely impacted their daily lives and economic security,” said Wendy Chun-Hoon, executive director of the Center for Law and Social Policy.

The persistent gender wage gap is also a nagging indicator. While that gap narrowed in 2025, likely due to the beneficial polices of the previous administration, women’s wages only moved closer to men’s by three cents. Such a slight increase will not move the needle on income inequality.

Overall, today’s data can be seen as setting the baseline for the harmful policies hardwired to play out in the coming years. And even at this baseline, we can see that people are not moving out of poverty—they are holding steady. While we are relieved that the news is not worse, we recognize that the affordability crisis and impending cuts to programs families rely on will increase income inequality, widen the wealth and gender wage gaps, and push more Americans into economic precarity and poverty.

“As the affordability crisis deepens, so does the country’s wealth gap. H.R.1’s tax cuts for the wealthy were largely funded by draconian cuts to programs that support people with lower incomes. As a result, we expect to see income inequality rise even more in the coming years, as income soars for the wealthy while working families will see lower incomes and continued challenges with affording the groceries, rent, and other things they need for to survive—and thrive,” said Chun-Hoon.