The share of Americans living in poverty fell to its lowest level on record last year, according to Census Bureau figures released this week, and median household income reached a record high.
The poverty rate dropped to 10.2% in 2025, down about half a percentage point from 2024 and the lowest since the measure has been tracked. Median household income rose 2.6% to $87,460, also a record in nominal terms.
The gains were substantially offset by prices. Inflation of roughly 3% erased much of the income growth, and housing costs continued to climb faster than wages.
Republicans seized on the numbers. Rep. Michael Baumgartner of Washington wrote: “Poverty is bad.
Every American should celebrate poverty rates are now the lowest on record. Good job everyone. Keep it going.” Rep. Don Bacon of Nebraska called it “good news we can all celebrate.”
The figures sit awkwardly against how Americans say they feel.
Fox News reported that 85% of people it polled described their financial situation as worsening or unchanged, and that roughly two-thirds of voters believe the Trump administration is making the economy worse.
The Census data covers calendar year 2025 and measures income before the effect of price changes on purchasing power.
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