1.This Act may be cited as the
Measuring American Poverty Act of
2009
.
2.The Congress finds as follows:
(1)Poverty imposes substantial costs on all
Americans that can be addressed through effective poverty reduction.
(2)States and cities throughout the country
have acknowledged the need to reduce poverty and the role of the Federal
Government as an essential partner.
(3)On January 22, 2008, the House of
Representatives, by voice vote, passed House Concurrent Resolution 198 of the
110th Congress expressing the sense of the Congress that the United States
should set a national goal of cutting poverty in half over the next 10
years.
(4)The poverty rate is a critical indicator of
how widely shared prosperity is in the economy, and a key benchmark for
targeting resources towards the most disadvantaged.
(5)The poverty measure is critical for efforts
to strengthen and enlarge the middle class, as it indicates who falls from or
struggles to join the middle class.
(6)The official
poverty measure, while helpful, is based on outdated assumptions and fails to
accurately measure economic deprivation or take into account the availability
of many economic resources.
(7)The official
poverty measure offers inadequate guidance about the effectiveness of public
anti-poverty efforts.
(8)In 1995, the
National Academy of Sciences’ Panel on Poverty and Family Assistance
recommended adoption of an improved poverty measure, which addresses many
shortcomings of the official poverty measure and which remains relevant and
offers a starting point for an improved measure.
(9)Since even an improved poverty measure
remains a measure of deprivation, not of adequacy, a measure of adequate income
needed to reach a decent living standard is also necessary.
(10)Since an inability to access needed medical
care is an important indicator of economic insecurity, a medical care risk
measure would further enhance understanding of Americans’ well-being.
3.The purpose of this
Act is to provide for an improved and updated method for measuring the extent
to which families and individuals in the United States have sufficient income
to allow a minimal level of consumption spending that meets their basic
physical needs, including food, shelter (including utilities), clothing, and
other necessary items, in order to better assess the effects of certain
policies and programs in reducing the prevalence and depth of poverty, to
accurately gauge the level of economic deprivation, and to improve
understanding of the targeting of public resources, without directly affecting
the distribution of, or eligibility for, any Federal benefits or
assistance.
4.Modernization of
the measurement of povertyPart A of title XI of the Social Security
Act (42 U.S.C. 1301—1320b–21) is amended by adding at the end the
following:
1150A.Modernization
of the measurement of poverty
(a)The Bureau of the
Census, in collaboration with the Bureau of Labor Statistics, after
consultation about methodology with other Federal statistical agencies and
outside experts, shall, to the extent possible and based on the best available
data, calculate modern poverty thresholds, and modern poverty rates as provided
for in subsection (d), for each calendar year (including any calendar year
before the first year for which the first annual report is published, for which
the information needed to perform the calculations is available or can be
estimated with a reasonable degree of confidence, as determined by the Bureau
of the Census) in accordance with this section.
(b)No effect on
benefit programsThis section shall not be interpreted to modify
or authorize modification of eligibility of any entity for, or the amount or
kind of benefits or assistance to be provided to any entity under, any program
or activity funded, in whole or in part, with Federal funds.
(c)Modern poverty
thresholds
(1)Consumption
distribution for reference family
(A)Within 12 months
after the date of the enactment of this section, the Bureau of the Census and
Bureau of Labor Statistics shall choose—
(i)the most
appropriate distribution of consumption expenditures (including the value of
relevant amounts described in subsection (d)(3) or that would otherwise be
described in subsection (d)(3) if included in the distribution) on food,
clothing, and shelter (including utilities), which may, if appropriate, exclude
families receiving subsidies for food, clothing, or shelter (including
utilities); and
(ii)the reference
family for the modern poverty measure.
(B)Calculation for
reference familyThe modern
poverty threshold for a reference family, as determined under subparagraph (A),
shall be an amount equal to the average of 120 percent of the 33rd percentile
of the distribution chosen under subparagraph (A) allowing for calculations to
rely on a limited band converging on this percentile, during 4 or more of the
most recent years for which data is available from the Consumer Expenditure
Survey, a superior Federal Government source of data, or some combination of
such sources as determined by the Bureau of the Census and the Bureau of Labor
Statistics. The threshold shall be updated no less often than annually using
this method.
(C)Notwithstanding any
other provision of this section, insofar as the amounts described in
subparagraphs (F) and (G) of subsection (d)(3) are not easily included in the
distribution referred to in subparagraph (B) of this paragraph, the Bureau of
the Census and the Bureau of Labor Statistics shall develop methods for
including, and shall include, the actual or estimated amounts in the
distribution.
(2)Adjustment for
family size and composition, and for geographic cost variationThe Bureau of the Census, in collaboration
with the Bureau of Labor Statistics and the Bureau of Economic Analysis, and in
consultation with other relevant Federal statistical agencies, shall adjust the
modern poverty threshold calculated under paragraph (1) of this
subsection—
(A)for other family sizes and compositions,
using the best available equivalence scales that consider economies of scale
and any special needs of children, including young children; and
(B)to the maximum extent possible and not
earlier or later than the inclusion of State and local taxes and transfers as
described in subsection (e)(4), for differences in the costs for the goods and
services included in the threshold among States, sub-State non-metropolitan
areas, and metropolitan areas.
(3)Accommodation of
housing statusTo the maximum
extent possible, the calculation for the threshold for the reference family
described in paragraph (1) and the adjustments to the modern poverty thresholds
for varied family sizes and compositions under paragraph (2)(A) shall be made
separately for each of the following categories of families:
(A)Families who own
their primary residence and do not have a mortgage secured by the
residence.
(B)All other families, or for any subgroups of
all other families if the Bureau of Labor Statistics determines that reliable
data indicates substantial variation in the amounts of money needed by the
subgroups to purchase similar quality shelter.
(4)Annual
publication of weighted average poverty thresholdsNot
less often than annually, the Bureau of the Census, in collaboration with the
Bureau of Labor Statistics, shall publish—
(A)the average
poverty threshold for each family size, determined by weighting each threshold
by the proportion of families of that size to which the threshold applies,
and
(B)the average poverty threshold for each
family size in each category described in paragraph (3), determined by
weighting each threshold by the proportion of families of that size in that
category and to which the threshold applies.
(d)
(1)The Bureau of the Census shall use the modern poverty
thresholds calculated under subsection (c) to calculate, at a minimum—
(A)the number and
percentage of families in the United States whose adjusted market income does
not exceed the applicable modern poverty threshold, and the number and
percentage of individuals in the United States who are members of such
families;
(B)the number and percentage of families in
the United States whose adjusted disposable income does not exceed the
applicable modern poverty threshold, and the number and percentage of
individuals in the United States who are members of such families; and
(C)the numbers and
percentages described in subparagraphs (A) and (B) for various demographic,
geographic, and other subgroups of families in the United States, and for
individuals who are members of such subgroups of families.
(2)For purposes of this
section, the adjusted market income of a family is—
(A)the total of the amounts received by any
member of the family during a calendar year from wages, salaries, and
self-employment income, interest income, dividend income, realized capital
gains, rents, royalties, estate and trust income, a qualified retirement plan
(as defined in section 4974(c) of the Internal Revenue Code of 1986), a plan
described in section 457(b) of such Code, or any other plan, contract, annuity,
or account payments or distributions from which are in the nature of a
retirement benefit, survivor and disability pensions and annuities, paid-up
insurance policies, alimony payments, child support payments, private workers’
compensation, regular contributions from persons not living with the family,
and other relevant income as determined by the Bureau of the Census except for
income described in subparagraph (C), (D), (E), or (F) of paragraph (3) of this
subsection; minus
(B)the total of the amounts paid by any member
of the family during the calendar year for—
(i)alimony or the support or maintenance of a
noncustodial child;
(ii)medical expenses;
and
(iii)necessary
work-related expenses, including—
(I)dependent care
expenses;
(II)transportation
expenses; and
(III)if there is
reliable data therefor, work-search expenses.
(3)Adjusted
disposable incomeFor
purposes of this section, the Bureau of the Census shall define the adjusted
disposable income of a family as follows, excluding any amounts that are not
taken into account in determining poverty thresholds under this section:
(A)the adjusted
market income of the family; minus
(B)the total of the amounts paid by any member
of the family during the calendar year to cover Federal income tax liability or
Federal payroll tax liability, or if such information is not available, the
total of any such liabilities that are payable by any member of the family
during the calendar year; plus
(C)the total of the amounts received by any
member of the family during the calendar year from refundable Federal tax
credits, or if such information is not available, the total of any such credits
that are expected by any member of the family to be received during the
calendar year; plus
(D)the total of the amounts received by any
member of the family during the calendar year which may be used to meet food,
clothing, or shelter (including utilities) needs—
(i)referred to in
section 459(h)(1)(A)(ii) of this Act; or
(ii)paid under a State or local program funded
under part A of title IV of this Act, the supplemental security income program
under title XVI of this Act, or any other Federal program or activity the
eligibility for which is based, in whole or in part, on need; plus
(E)the total dollar value of any food
assistance benefit (as defined in section 3(d) of the Food and Nutrition Act of
2008) received by any member of the family during the calendar year under
section 8 of the Food and Nutrition Act of 2008; plus
(F)the total of the amounts received by any
member of the family during the calendar year as described in section
2605(b)(2) of the Low-Income Home Energy Assistance Act of 1981; plus
(G)the total of the amounts received by any
member of the family during the calendar year as government-funded nonmedical
in-kind, cash and near cash benefits that help families meet food, clothing,
and shelter (including utilities) needs and are not intended to reimburse or
subsidize other expenses, including nutrition programs, housing subsidies, and
the value of public housing, not to exceed to the lesser of the share of the
threshold defined in subsection (c) attributable to the component of the
threshold towards which the benefit may be used or the estimated monetary value
of the benefit to the recipient, to the extent possible.
(4)Inclusion of
state and local taxes and transfersWithin 5 years after the date of the
enactment of this section, the Bureau of the Census, in collaboration with the
Bureau of Labor Statistics, and after consultation with other relevant
statistical agencies, shall modify the calculation under paragraph (3) to take
account of State and local taxes and transfers.
(e)For purposes of this section, the term
family includes—
(1)an individual who
is living alone;
(2)all members of a
household who are related by blood, marriage, adoption, or other legal
arrangement; and
(3)any unrelated individuals living together
whom the Bureau of the Census, in collaboration with the Bureau of Labor
Statistics, after assessing existing research and undertaking any necessary new
research, determines should be treated as a family for purposes of this
section.
(f)Not less
frequently than annually, the Bureau of the Census shall produce, release
simultaneously with publication and announcement of poverty thresholds and
rates under the traditional poverty measure, and make readily accessible to the
public, a report which contains detailed tables and explanations of poverty
rates—
(1)as determined on
the basis of adjusted market income;
(2)as determined on
the basis of adjusted disposable income; and
(3)as determined on
the basis of the traditional poverty measure referred to in subsection
(g).
(g)References to
existing poverty measure as the traditional poverty
measure
To the extent
practicable, whenever an officer or employee of the Federal Government refers
to the poverty measure outlined in Office of Management and Budget Statistical
Policy Directive 14, the officer or employee, as the case may be, shall refer
to that measure as the traditional poverty measure
. Any
reference in a law, regulation, document, paper, or other record of the United
States to the poverty measure outlined in Office of Management and Budget
Statistical Policy Directive 14 is deemed to be a reference to the
traditional poverty measure
.
(h)Inclusion of
information based on modern poverty thresholds and rates in published documents
containing information based on traditional poverty thresholds and
rates
(1)To the extent possible, a relevant Federal statistical
agency that publishes a document which contains information about a subject,
which was produced using the poverty measure outlined in Office of Management
and Budget Statistical Policy Directive 14, shall include in the document
information about the subject, which is produced using the modern poverty
thresholds and modern poverty rates calculated under this section.
(2)Public release
of microdata file and online toolsOn releasing a document described in
paragraph (1), the Bureau of the Census shall release to the public, while
maintaining privacy and confidentiality standards required by Federal
law—
(A)microdata files (modified as necessary to
avoid unduly increasing the risk of serious primary and secondary disclosure
problems) containing all of the individual variables that are necessary to
compute the published modern poverty rates, as well as poverty rates determined
on the basis of the traditional poverty measure referred to in subsection (g),
and to calculate poverty rates using different definitions of income and
poverty thresholds;
(B)other public
online tools that enable detailed poverty rates to be calculated using
different definitions of income and poverty and adequacy thresholds, including
1/2 and 3/5 of median income;
and
(C)the definitions of
income set forth in, and the poverty thresholds established under, this
section.
(i)Consultation on
improving calculation of the modern poverty thresholds or modern poverty rates;
report to the CongressFrom
time to time, and no less frequently than every 5 years, the Bureau of the
Census, in collaboration with the Bureau of Labor Statistics, shall—
(1)consult with other relevant Federal
statistical agencies and outside experts on whether the method of, and sources
of data for, calculating the modern poverty thresholds or modern poverty rates
provided for in this section could be improved so as to better measure,
including through adjustments for any underreporting or other misreporting of
income and adjustments for families with greater income needs (such as those
including persons with disabilities), the extent to which families in the
United States are able to secure sufficient income to allow a minimal level of
consumption that meets their basic physical needs, including food, clothing,
shelter (including utilities), and other necessary items; and
(2)report to the
Congress on any need for any such improvement.
(j)Relevant federal
statistical agencyIn this
section, the term relevant Federal statistical agency means a
Federal agency that—
(1)is listed as a
major statistical program of the United States in the annual report most
recently made under section 3504(e)(2) of title 44, United States Code;
or
(2)the Office of Management and Budget expects
to be so listed in the next such report.
(k)Limitations on
authorization of appropriationsTo carry out this section, there are
authorized to be appropriated—
(1)to the Bureau of
the Census—
(A)for fiscal year
2010, not more than $5,000,000; and
(B)for each
succeeding fiscal year, not more than the amount specified in subparagraph (A),
multiplied by the sum of 1 plus the percentage (if any) by which the Consumer
Price Index for All-Urban Consumers for September of the fiscal year then
preceding the succeeding fiscal year exceeds the index for September of the
fiscal year second preceding the succeeding fiscal year; and
(2)to the Bureau of
Labor Statistics—
(A)for fiscal year
2010, not more than $2,500,000; and
(B)for each succeeding fiscal year, not more
than the amount specified in subparagraph (A), multiplied by the sum of 1 plus
the percentage (if any) by which the Consumer Price Index for All-Urban
Consumers for September of the fiscal year then preceding the succeeding fiscal
year exceeds the index for September of the fiscal year second preceding the
succeeding fiscal year.
1150B.Study of
decent living standard
(a)The Bureau of the
Census, in collaboration with the Bureau of Labor Statistics, shall enter into
a contract with the National Academy of Sciences which obligates the National
Academy of Sciences to develop and publish a method of calculating a decent
living standard threshold, including relevant variations for geography, family
size, and other such factors, and a method of measuring the extent to which the
income of families in the United States is sufficient to meet the threshold.
The National Academy of Sciences shall consider and critically review the
growing body of work in this area, comparing different underlying concepts in
existing approaches such as family budgets, basic needs budgets, and
self-sufficiency standards, and comment on the best ways to move forward
towards building consensus.
(b)The Bureau of the Census, the Bureau of Labor Statistics,
and other relevant statistical agencies shall provide necessary technical
support for the efforts to develop the threshold and method referred to in
subsection (a).
(c)Definition of
decent living standard thresholdIn subsection (a), the term decent
living standard threshold means the amount of annual income that would
allow an individual to live at a safe and decent, but modest, standard of
living. The decent living standard shall be a measure of income adequacy
reflecting the resources necessary to meet basic needs and live beyond
deprivation.
(d)Limitations on
authorization of appropriationsTo carry out this section, there are
authorized to be appropriated to the Bureau of the Census—
(1)for fiscal year
2010, not more than $500,000; and
(2)for fiscal year 2011, not more than the
amount specified in paragraph (1), multiplied by the sum of 1 plus the
percentage (if any) by which the Consumer Price Index for All-Urban Consumers
for September 2010 exceeds the index for September 2009.
1150C.Study of
medical care risk measure
(a)The Bureau of the
Census, in collaboration with the Bureau of Labor Statistics, the Agency for
Healthcare Research and Quality, and the Centers for Medicare and Medicaid
Services shall enter into a contract with the National Academies, including the
National Academy of Sciences and the Institute of Medicine, which obligates the
National Academies to develop and publish a method of measuring the extent of
medical care risk in the United States and calculating the number and
percentage of individuals in the United States who, to varying degrees, lack
adequate health insurance, placing them at risk of being unable to afford
needed treatment.
(b)The Bureau of the Census, the Bureau of Labor Statistics,
the Agency for Healthcare Research and Quality and the Centers for Medicare and
Medicaid Services, and other relevant health and statistical agencies shall
provide necessary technical support for the efforts to develop the method and
measure referred to in subsection (a).
(c)Definition of
medical care riskIn subsection (a), the term medical care
risk means the extent to which individuals are at risk of being unable
to afford needed medical treatment, services, goods, and care.
(d)Limitations on
authorization of appropriationsTo carry out this section, there are
authorized to be appropriated to the Bureau of the Census—
(1)for fiscal year
2010, not more than $500,000; and
(2)for fiscal year 2011, not more than the
amount specified in paragraph (1), multiplied by the sum of 1 plus the
percentage (if any) by which the Consumer Price Index for All-Urban Consumers
for September 2010 exceeds the index for September 2009.
1150D.Study to
improve state and local poverty measurement
(a)The Bureau of the
Census, in consultation with other relevant statistical agencies, shall enter
into a contract with the National Academy of Sciences which obligates the
National Academy of Sciences to develop a set of recommendations for methods to
implement annual modern poverty measurement at the State and local level and a
timeframe for the implementation. The methods to be examined shall include
revisions to the American Community Survey questionnaire, use of administrative
records, and use of modeled estimates.
(b)The Bureau of the Census and other relevant statistical
agencies shall provide necessary technical support for the effort referred to
in subsection (a).
(c)Limitations on
authorization of appropriationsTo carry out this section, there
are authorized to be appropriated to the Bureau of the Census—
(1)for fiscal year
2010, not more than $250,000; and
(2)for fiscal year
2011, not more than the amount specified in paragraph (1); multiplied by the
sum of 1 plus the percentage (if any) by which the Consumer Price Index for
All-Urban Consumers for September 2010 exceeds the index for September
2009.
.