US representative announces potential legislation boosting federal poverty line

Originally published by the San Mateo Daily Journal and written by Alyse DiNapo…

U.S. Rep. Kevin Mullin introduced a bill Wednesday, Dec. 6, to update the federal poverty line and incorporate regional cost-of-living differences, citing an antiquated formula that hasn’t seen substantive changes in more than five decades.  

The federal poverty line is used to establish eligibility for a wide swath of means-tested social programs — including the Supplemental Nutrition Assistance Program, Children’s Health Insurance Program, school lunch programs and many Medicaid and Medicare services — but the formula to calculate the income threshold does not incorporate many expenditures that have seen substantive increases since its creation several decades ago.

The proposed legislation would amend the Community Services Block Grant Act to require more input in the federal poverty line calculation, such as average expenditures for child care costs, health care premiums and out-of-pocket expenses, rental housing estimates and other general household spending. The bill would also require a county-level adjustment, and no threshold changes would result in the elimination of benefits for those who are currently eligible.

“The affordability crisis we have on the Peninsula most certainly is a motivator for me,” Mullin, D-South San Francisco, said. “This poverty line is essentially too low for many families to qualify for federal assistance, but they make too little to meet their basic household needs, so that is the conundrum that is confronting many families.” 

Implementation would require compilation and analysis of significantly more data points among numerous agencies. But Mullin said these sources already exist, and the long-term impacts are worth initial hurdles that may arise from cross-agency integrations. 

“I’ll be the first to admit that this will be somewhat a complicated process to implement but, ultimately, I think it’s going to simplify the entire process,” he said, also noting the legislation would ensure the methodology is evaluated for efficacy every four years.  

The federal poverty line, excluding Hawaii and Alaska, ranges from $14,580 for a household of one to $40,280 for a six-person household. But with minimum wages hovering around $16 to $17 per hour in the county, even a single parent with two or three children easily surpasses the maximum income threshold if they are working full time at the lowest wage legally permitted.  

“Minimum wages are so high in our area, and it’s practically impossible to have a job and stay below the poverty line,” Heather Cleary, CEO of Peninsula Family Service, said. “We’re in the child care business, and we know that there are so many more people that we could serve if the poverty line was adjusted … it affects a huge number of community members.”

While the bill is co-sponsored exclusively by Democrat representatives, such as U.S. Reps. Barbara Lee and Rashida Tlaib, Mullin said the issue is meant to be bipartisan, as the issue of poverty affects individuals and families in both blue and red states. 

Changing the federal poverty line would come with a hefty price tag, as millions of residents would likely become eligible for assistance, and the cost alone could be a non-starter for some. While pleasantly surprised by the diverse array of support he’s received from organizations nationwide, he’s also aware of the challenges that lie ahead. 

“It is going to be a tough fight whenever you talk about changing calculations and formulas,” Mullin said. “The most powerful thing in politics is the status quo, and so many folks get invested in the way things have always been done. Well, it’s abundantly clear that this federal poverty line is inadequate. I’m beyond the task force and study point on this. We need action, and we need it now for working families who have been struggling for some time in this country.”