The Supplemental Poverty Measure (SPM) released by the U.S. Census Bureau today (November 6, 2013) shows that the poverty rate for all persons was 16.0 percent in 2012, virtually the same as in 2011, 16.1 percent. A key finding in today’s Census release is that millions of people would have been poor in 2012 in the absence of our safety net programs. For example, the Supplemental Nutrition Assistance Program (SNAP, formerly food stamps) raised about 5 million people above the poverty line; the Earned Income Tax Credit (EITC) and other refundable tax credits raised more than 9 million people above the poverty line.
The Supplemental Poverty Measure (SPM) is important because, unlike the Official Poverty Measure (OPM) which counts only money income (e.g., wages and cash transfers from the government), the SPM also includes non-cash government benefits such as SNAP, the school lunch program, housing subsidies and the EITC. These noncash benefits have grown more rapidly than cash benefits in recent decades.