Who establishes the federal poverty level?

Answer 1

There are two slightly different U.S. federal poverty measures: poverty thresholds, based on the thrifty food plan by the U.S. Department of Agriculture, and poverty guidelines, a simplification of the poverty thresholds used to determine eligibility for a number of programs. The poverty thresholds are established after the year is over, based on the Current Population Survey from March of the current year. For example, the 1998 poverty threshold, which reflects the 1998 calendar year, was calculated by the 1999 March Current Population Survey. Until it is calculated, the poverty threshold is merely an estimate. Poverty thresholds are used mainly for statistical purposes and research, such as preparing estimates of the number of Americans in poverty each year.

Poverty guidelines are issued at the beginning of each year, generally in February or March, and are used to determine eligibility for poverty programs such as the Oregon Health Plan. In most cases, guidelines and thresholds can be used interchangeably, except when precision is needed for administrative or legislative purposes. When people talk about the federal poverty level, or federal poverty line, they are usually referring to guidelines, unless it is in a research-oriented context. It is always good to check which is being used.