Poverty rate in US drops due to welfare program expansion

Published January 12, 2025 3:39pm ET



(The Center Square) – Low-income households are becoming increasingly dependent on government welfare and entitlement programs rather than work paychecks, according to a new report from the Congressional Budget Office.

Comparing data from Distribution of Household Income reports and the Official Poverty Measure, the CBO found that Americans living below the poverty threshold in 2021 received about 25% of their income from employment earnings, versus 60% in 1979.

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