According to Bloomberg, Trump may redefine the poverty threshold. This would put many Americans living on the edge of the threshold at risk of losing their access to welfare. Trump’s move would change how inflation is calculated in the “official poverty measure” according to a regulatory filing on Monday by the White House Office of Management and Budget. The formula is used to determine whether or not a person qualifies for certain federal programs and benefits.
The measure began in the 1960s and calculates three times the cost of a minimum food diet and adjusts the formula annually. Las year, a family of four with an annual income of $25,900 was considered to be living in poverty.
If Trump changes the index, the poverty level could rise more slowly. One administration official said the index should be reevaluated, as it has been unchanged for 40 years.
“Because of this, changes to the poverty thresholds, including how they are updated for inflation over time, may affect eligibility for programs that use the poverty guidelines,” OMB said.
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