Improvements to the Census Bureau’s Supplemental Poverty Measure for 2021

Following decades of research on poverty measurement and guidance from a National Academies of Sciences Panel and the Interagency Technical Working Group on Developing a Supplemental Poverty Measure (SPM), in 2011 the Census Bureau released the first annual SPM report. Since this first publication, no major changes have been made to the SPM, but research has been ongoing at the BLS and Census Bureau on potential improvements and validation of prior assumptions. The Office of Management and Budget (OMB) has established a new interagency technical working group, which set 2021 as a target for making methodological improvements to the measure. Further future improvements to the SPM are being considered by a National Academies of Sciences panel.

Below are changes to the Supplemental Poverty Measure (SPM) methodology that were voted on during the September 2020 SPM interagency technical working group.

1. Resources

a. Move from a national value to state-varying values for the Special Supplemental Nutrition Program for Women, Infants and Children (WIC).

2. Threshold

a. Move the base of thresholds from 33rd percentile to a percentage of median with the percentage based on National Academy of Sciences (NAS) guidance or the share of median that gets closest to current SPM rate.

b. Expand estimation sample to all consumer units with children.

c. Lag Consumer Expenditure Survey (CE) data used to estimate the thresholds by one year.

d. Add imputed in-kind benefits to the thresholds.

e. Move telephone expenditures out of utilities (i.e. no longer geographically adjust this portion of the threshold).

f. Add home internet expenditures to thresholds.

g. Use a composite FCSU consumer price index as opposed to the All Items, All Urban index to adjust components.

Expert Meetings

The Supplemental Poverty Measure Workshop Brookings Institution May 20, 2019 [<1.0 MB]

The Supplemental Poverty Measure Workshop Brookings Institution May 28, 2020 [<1.0 MB]

Overview

Overview - Trudi Renwick (Slides) [<1.0 MB]

Working Paper | March 19, 2020 | Liana Fox

Potential Improvements to the Supplemental Poverty Measure

This presentation gives an overview of potential changes to the SPM under consideration for 2021.

Updates to Thresholds

Changes under Consideration for 2021: SPM ThresholdsThresholds –Thesia I Garner (Slides) [<1.0 MB]

Moving to the Median and Expanding the Estimation Sample: The Case for Changing the Expenditures Underlying SPM Thresholds - Liana E. Fox and Thesia I. Garner (Slides) [1.7 MB]

Adjustments to SPM Thresholds: Focus on In-Kind Benefits, Prices, and Expenditure Definitions - Thesia I. Garner (Slides) [1.4 MB]

Working Paper | February 12, 2018 | Liana E. Fox and Thesia I. Garner

Moving to the Median and Expanding the Estimation Sample

This paper examines the impact of two potential changes to the SPM thresholds: changing the range of expenditures and expanding the estimation sample.

Controlling for Prices before Estimating SPM Thresholds and the Impact on SPM Poverty Statistics - Thesia I. Garner and Juan D. Munoz Henao [<1.0 MB]

Alternative Poverty Measurement for the U.S.: Focus on Supplemental Poverty Measure Thresholds - Thesia I. Garner and Marisa Gudrais [<1.0 MB]

Updates to Resources

Working Paper | October 01, 2020 | Liana E. Fox and Kalee Burns

Capping Nutritional Assistance in the Supplemental Poverty Measure

This paper develops a methodology and investigates the potential impact of capping nutritional assistance benefits in the estimation of the SPM.

Working Paper | October 01, 2020 | Liana E. Fox and Danielle Wilson

Impact of Using State Average WIC Values in the SPM

Using data from the 2018 CPS ASEC, this paper analyzes the impact of using state-varying WIC values instead of national WIC values to estimate SPM rates.

Working Paper | June 22, 2020 | Liana Fox

Potential Improvements to the SPM for 2021: Resources

This presentation gives an overview of potential changes to SPM resources under consideration for 2021.

Working Paper | July 23, 2019 | Liana Fox

Improving Estimation of Nutritional Assistance Programs in the SPM

This presentation gives an overview of potential changes to nutritional assistance programs in the SPM under consideration for 2021.

Updates to Geographic Adjustments

Working Paper | May 28, 2020 | Trudi Renwick

Supplemental Poverty Measure: Alternative Geographic Adjustments

This presentation gives an overview of potential changes to geographic adjustments in the SPM under consideration for 2021.

Working Paper | December 2018 | Trudi Renwick

Incorporating Amenities into Geographic Adjustments of the SPM

Thresholds for the Supplemental Poverty Measure reflect differences in the cost of housing. This paper suggests an approach that takes into account amenities.

Working Paper | July 27, 2017 | Trudi Renwick, Eric Figueroa and Bettina Aten (BEA)

Geographic Adjustments with BEA RPPs vs. ACS Median Rents: An Update

This paper compares the results of two different adjustments to the Supplemental Poverty Measure thresholds.

Working Paper | March 2014 | Trudi Renwick, Bettina Aten, Eric Figueroa, and Troy Martin

Adjustments with Regional Price Parities vs. Median Rents from the ACS

The focus in this paper is to compare two types of geographic adjustments.

Related Information

WORKING PAPER

Supplemental Poverty Measures Working Papers by Topic

Last Revised: October 8, 2021