There’s a problem in the United States: Upward of 40% of households across the country are struggling to afford basic necessities despite household members having jobs.
- These households — represented by the acronym ALICE for Asset Limited, Income Constrained, Employed — have incomes that exceed the Federal Poverty Level (FPL) yet fall short of the basic cost of living (Household Survival Budget) for their local economies. This leaves them fighting to afford essentials — such as housing, childcare, food, transportation, and health care — let alone cover a smartphone plan, pay taxes, or build contingency savings.
- The FPL fails to take into account the cost of contemporary household necessities, and with the exception of Alaska and Hawaii, it is not adjusted to reflect cost-of-living differences. When compared to the Household Survival Budget, which does take into account cost-of-living differences, the FPL is drastically inadequate. For community financial institutions, an accurate understanding of financial hardships and local needs is vital in developing effective solutions.
- 2021 data from the Department of Health and Human Services showed 144,427 households in Iowa fell below the poverty level. That’s 11%. According to data from United for ALICE, however, an additional 315,017 households, or 24%, fell below the local survival budget. That’s 459,444 households out of Iowa’s 1.3 million households — a full 35% — that fell below the local survival budget.
- To date, 28 states and the District of Columbia participate in United for ALICE. They are: Arkansas, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Louisiana, Maine, Maryland, Michigan, Mississippi, New Jersey, New York, Ohio, Oregon, Pennsylvania, South Carolina, Tennessee, Texas, Virginia, Washington, West Virginia, and Wisconsin. Learn more about ALICE by visiting unitedforalice.org.
- A partnership with United Ways of Iowa is uncovering insights about community members who qualify as as ALICE, employed yet struggle under limited assets and constrained income. Learn more in “GreenState Foundation Invests In Data To Improve Its Community.”
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