Urges federal government to raise federal poverty line for public assistance programs.
According to the resolution, nearly 53 million households are unable to afford necessary living expenses, but only about 37.9 million are officially recognized as being in poverty. This discrepancy prevents a substantial segment of the population from accessing vital public assistance programs such as Medicaid and the Supplemental Nutrition Program. The resolution argues that raising the federal poverty line could allow a more accurate representation of impoverished households and facilitate greater access to assistance for those in need, potentially alleviating their financial burdens.
Overall, SR100 seeks to prompt action at the federal level to redefine the poverty measurement used for public assistance eligibility, which its supporters argue is critical for accurately aiding those facing economic challenges today. By urging these changes, the resolution aims to ensure that assistance programs can reach a broader base of individuals and families who genuinely require help in navigating the increasingly expensive cost of living.
Senate Resolution 100 (SR100) from the State of New Jersey urges the federal government to raise the federal poverty line utilized for determining eligibility in public assistance programs. The current measurement of poverty has remained largely unchanged since its establishment in the 1960s, with only inflation adjustments affecting its calculation. Given that this original threshold only considers basic food needs and neglects essential costs associated with housing, healthcare, child care, and transportation, the resolution highlights the growing disparity between the number of individuals struggling to meet their basic needs and those classified as living in poverty based on the federal definition.
The document also addresses the consequences of recent minimum wage increases, which have inadvertently led to some low-wage workers losing their eligibility for public assistance due to slight pay raises. This phenomenon, termed the 'benefits cliff', creates a disincentive for these workers to increase their hours or accept promotions, as doing so may result in the loss of essential assistance programs. Thus, the resolution advocates for an adjustment in the poverty line to include a more comprehensive assessment of what constitutes financial hardship in current economic conditions.