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US Poverty Rate Hits Record Low as Median Household Income Reaches New High

Real median household income rose 2.6% to $87,460, while the poverty rate fell to 10.2% and gains remained concentrated at the top.

  • On Tuesday, the U.S. Census Bureau reported that 2025 median household income rose 2.6% to $87,460, the highest on record, while the official poverty rate dropped to a historic low of 10.2%, affecting about 34.5 million people.
  • Despite these historic topline numbers, economic gains were not spread evenly; income among the wealthiest 10% rose 1.7%, while the bottom 10% showed no significant change, indicating low-income households largely missed out on growth.
  • Asian American households earned a median of $126,300, while Hispanic poverty reached an unprecedented 13.9%; households at the 90th percentile earned about $261,300, more than 13 times the roughly $20,010 earned at the 10th percentile.
  • Health insurance coverage remained steady at 92.1% in 2025, though medical expenses pushed 7.7 million people below the supplemental poverty line; the report reflects the economy before President Trump's "Big Beautiful Bill" safety-net cuts took hold.
  • Analysts warn that upcoming data will likely show grimmer statistics as new federal policies take hold; the Congressional Budget Office estimates roughly 15 million people could become uninsured by 2034, far exceeding the current 1.3 million.
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Fox 10 PhoenixFox 10 Phoenix
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US poverty rate hits record low as median household income reaches new high

New federal data show changes in poverty, household income and health insurance coverage across the United States in 2025.

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Axios broke the news in Arlington, United States on Wednesday, September 16, 2026.
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