US Poverty Hits Record Low as Median Income Rises

The United States Census Bureau reported that the official poverty rate fell to a record low of 10.2% in 2025, with child poverty also hitting a historic low of 13.4%. During the same period, real median household income rose 2.6% to a record high of $87,460, the highest level since 1967. Post-tax median household income increased 3.1% to $76,060. Demographic data showed the largest income gains for Black households, which rose 4.8%, while the gender wage gap narrowed as women's pay grew by 3.2%.

Donald Trump and Treasury Secretary Scott Bessent attributed these milestones to the administration's economic policies and the Working Families Tax Cuts Act. However, critics and analysts warn that these figures precede the impact of the One Big, Beautiful Bill signed in July 2025. This legislation enacted substantial cuts to Medicaid and the Supplemental Nutrition Assistance Program (SNAP), which the Center on Budget and Policy Priorities claims are already reducing food assistance and health coverage for millions.

As midterm elections approach, the administration is balancing these positive statistics against rising inflation and high energy costs, with diesel and regular gas prices increasing significantly. Vice President JD Vance has defended the administration's record on immigration and H-1B reform, asking voters for more time to address remaining economic challenges. Meanwhile, the Congressional Budget Office estimates that legislative changes could leave 10 million more people uninsured by 2034.