The overlooked geography of American poverty

When accounting for the cost of living, California and Louisiana both rank among the top states with high poverty rates, according to data from the U.S. Census Bureau. This contrasts with the traditional view that Southern states dominate America's poverty rankings. Axios analyzed 2023-2025 state poverty estimates to examine how housing, taxes, medical expenses, and government benefits impact families' financial situations.

Traditionally, Louisiana's poverty rate is 19.6%, while California's is 10.7%, with New Hampshire having the lowest at 5.4%. Ten states in the South have traditional poverty rates significantly higher than the national average. However, when considering the broader Supplemental Poverty Measure (SPM), which factors in additional benefits and expenses, California's poverty rate rises to 17.8%, and Louisiana remains high at 19.0%. Maine has the lowest SPM rate at 6.4%, followed by Nebraska at 7.5% and Minnesota at 7.9%.

The traditional poverty measure uses pretax cash income compared to a family-size threshold, not adjusted by geography. In contrast, the SPM includes government benefits like SNAP, adjusts for taxes and tax credits, subtracts work and medical expenses, and considers housing costs. Despite the official poverty rate falling for the third year in a row to 10.2% and child poverty reaching a record low of 13.4%, the SPM rate remained unchanged at 13.1%, nearly three percentage points higher than the official rate.

The median household income reached a record $87,460 in 2025, but the SPM doesn't replace the traditional official rate. It serves as an additional perspective, highlighting resources and unavoidable expenses that the traditional measure overlooks. The state figures are three-year averages due to smaller samples in the Current Population Survey. Ultimately, income alone does not determine whether a family can make ends meet.