H.R.1 will push millions more Californians into poverty. Federal and state policymakers have the moral imperative to act with urgency to cut child poverty in half and lift children and families into abundance

The U.S. Census Bureau recently released data from 2024 on poverty, income, and health from its Current Population Survey. California’s 2024 overall poverty rate of 17.7% and child poverty rate of 18.6% (as measured by the Supplemental Poverty Measure) have not statistically changed since last year, and California still has the highest poverty and child poverty rates in the country. 

Yet just a few years ago, Congress cut child poverty in half by investing in proven solutions like the enhanced Child Tax Credit, child care, and nutrition assistance. Federal and state policymakers must address the crisis of child poverty, especially deep poverty, through the investments and revenues necessary for an equitable future for every child. Because the tools to end poverty through policy are well-known and proven, this is a moral imperative.

More from California’s 2024 Supplemental Poverty Measure (SPM) data:

• Despite California being the fourth-largest economy in the world, about 7 million Californians live in poverty, and nearly 2 million Californians live in deep poverty. Deep poverty means living below 50% of the SPM threshold, which is about $20,000 a year (including public assistance) for a family of four.
• The racial wealth gap persists as Black, Latine, Indigenous, AAPI, and immigrant Californians continue to disproportionately experience poverty. Black (23.3%) and Latine (22.7%) Californians experience poverty at almost twice the rate of white Californians (13.3%).
• The increases in poverty for all age groups and all racial/ethnic groups from 2021 to 2024 are statistically significant. This shows that pandemic-era expansions to the social safety net, namely the Child Tax Credit, SNAP/CalFresh emergency allotments, and Pandemic EBT, successfully combated both overall poverty and child poverty. Poverty in California dropped to 10.5% in 2021, the lowest it has been over the last decade. Expirations of these proven programs led to historic spikes in poverty and a return to pre-pandemic levels as California’s 2019 SPM was 17.2% (about 6.7 million people).

Federal cuts are worsening affordability challenges for families, and accelerating income and wealth inequities 

Seven million Californians live without the means and resources they need to survive, much less thrive. As the impacts of President Trump’s regressive tariffs are currently unfolding, consumers bear the brunt of increased grocery bills and everyday costs. It is estimated that the average middle-income American household will see an additional $1,200 to $1,700 added to their annual expenses.

Moreover, poverty rates will only skyrocket as the Trump Administration rolls out its implementation of H.R.1. The republican megabill will drive up costs for all Californians, but Californians with low incomes, immigrants, and households of color will face the most financial hardship as many will lose access to their MediCal/Medicaid and CalFresh/SNAP benefits, be excluded from the Child Tax Credit, and face increasing threats from immigration enforcement. H.R.1 implementation, coupled with the tariff hikes, will leave the bottom 99 percent of Americans with less after-tax-and-transfer income by 2027, while the wealthiest 1% of Americans continue to profit.

Policy is and has always been a policy choice. We have the choice to end poverty now.

We are at an inflection point. With the impending ramifications of H.R.1 expected to push millions more into poverty and widen existing racial disparities, California has an opportunity to counter the federal  administration’s harmful, regressive policies and continue progress toward a more equitable future. Bold investments are needed to achieve this vision, and the time to act is now. 

Just as public policy choices cut poverty in half during the pandemic, we call on  the Legislature and Governor to enact uncompromising policies that uplift children, families, workers, and immigrant Californians, including to:

• Choose to raise revenues instead of the failed pathway of austerity cuts, in particular to raise revenues from highly profitable corporations that received major tax breaks in H.R. 1 that are financed by the same deep cuts to food and healthcare.
• Eradicate deep child poverty by lifting CalWORKs grants for all families to at least 50% of the federal poverty level. 
• Bolster proven basic needs programs that mitigate experiences of poverty, help families afford their basic needs, and provide pathways out of poverty. 
• Reverse harmful, discriminatory cuts to health care for immigrant Californians taken in the 2025-26 budget and
• Expand interventions like HOPE Accounts to close the racial wealth gap.

State leaders must protect California’s progress by raising revenues and lifting children and families into abundance. A future free from poverty is within our reach.

Attacks on federal data collection and statistics threaten data transparency

Defunding of federal statistical agencies by the Trump Administration threatens data availability and reliability. On September 20th, the US Department of Agriculture (USDA) announced that it will be terminating future data collection on food insecurity, effective 2025. In spite of their many flaws, national data collection surveys like the USDA’s and the Census Bureau’s capture every year of data in every geographic area in the U.S. Understanding trends in poverty and food insecurity will be increasingly more difficult as reliable and comprehensive data sources become more sparse. We also urge the Legislature to protect federal data collection as we enter an era of widespread misinformation and constant attacks on scientific research. Public data and resources belong to our communities and allow us to demand transparency and accountability from the governing bodies meant to serve us.