New state income and poverty data show a strong economy in 2024, but Trump policies threaten progress
U.S. Census data released this week showed that national median household income held strong in 2024. However, income growth was uneven and regional poverty disparities persisted.
Today, the Census Bureau released 2024 state-level income and poverty data from the American Community Survey (ACS). Although these data come from a different survey than the national income and poverty data, the overall trends are similar, with a range of outcomes across states.
Importantly, these data describe trends for 2024 and tell us nothing about economic conditions this year, in which Trump administration actions—chaotic tariffs, mass deportations, attacks on federal employees—have weakened the labor market, put upward pressure on prices, and threatened to undo recent progress of historically high wage growth and declining inequality.
State-level changes in household incomeBetween 2023 and 2024, U.S. median household income rose 2.0% to $81,604.1 Median household income varied significantly by state, from a low of $59,127 in Mississippi to $109,707 in the District of Columbia in 2024. Compared with 2023, median household incomes saw the largest decline in Rhode Island (–4.5%) and the largest increase in Alaska (7.3%). Twenty-nine states had a statistically significant increase in median income while the remaining 21 states and D.C. had no measurable year-over-year change in household income, positive or negative.
Because single-year changes can be volatile, it’s useful to look over a longer timeframe to identify trends. Specifically, we compare 2024 data with 2019—the year before the COVID-19 pandemic began—to understand the change in median household income between two recent years in which the economy was relatively strong. Between 2019 and 2024, ACS-measured median household income nationally increased only 1.1% after adjusting for inflation. Idaho (8.3%) and Montana (7.3%) experienced the largest increases in median household income since 2019, while Wyoming (–5.4%) and Minnesota (–4.9%) saw the largest declines. Overall, 30 states experienced an increase in median incomes from 2019 to 2024 and 20 states plus D.C. experienced a decline (see Figure A).
Figure A
The Census reported that poverty rates measurably fell in 13 states from 2023 to 2024. The share of people with incomes below the poverty line ranged from a low of 7.2% in New Hampshire to a high of 18.7% in Louisiana in 2024, compared with the U.S. average of 12.1% as measured by the ACS. Regionally, poverty rates were higher in the South and lower in the Northeast and West. Since 2023, poverty declined nationwide by 0.4% but declined much faster in Montana (–1.5%), New Mexico (–1.4%), and South Dakota (–1.4%). Poverty increased by more than one percentage point in DC (3.3%) and North Dakota (1.3%).
Poverty rates declined slightly less over the past year compared with 2019, but most states made progress nonetheless. Twenty-nine states had lower poverty rates in 2024 than in 2019, while 18 states and D.C. had poverty rates above their 2019 rates, and there was no change in California, New Jersey, and Wyoming (see Figure A). Since 2019, the poverty rate increased the most in D.C. (3.8%)—from 13.5% to 17.3%.
Trump administration actions will harm working families and deepen inequalityThe Biden administration’s fiscal response to the COVID-19 pandemic prevented prolonged economic pain, particularly in comparison to the Great Recession. Though inflation was pronounced in 2022, inflationary pressures declined in 2023 and 2024 while wages continued to rise, outpacing inflation and bolstering household income.
Unfortunately, Trump administration policies will undermine recent progress and exacerbate economic precarity for low-income households. In the years ahead, the Republican “One Big Beautiful Bill Act” will decimate access to health care and nutrition assistance for the poorest households while providing a massive tax cut for the wealthy—a giveaway that will cause pain for millions of U.S. households. And Trump’s chaotic trade policies and mass deportation agenda will harm U.S.-born and immigrant workers alike. In fact, some of these harms are already being felt. This month’s jobs report showed slowed growth and rising unemployment.
The Trump administration has also taken actions to undermine the work of civil servants who collect and analyze the data summarized here. The Bureau of Labor Statistic and U.S. Census Bureau provide high-quality, nonpartisan economic data that allow policymakers at all levels of government—as well as business leaders—to plan and make decisions that keep our economy functioning. But the Trump administration has implemented deep staffing cuts at federal agencies and politicized the work of economists and statisticians, eroding trust in government and threatening the credibility of future data collection and analysis efforts.
Amid federal attacks on working families, state lawmakers can advance economic justiceWhile recently released household income and poverty data showed some improvement in 2024, much more progress is needed to address income inequality and disparities by race and gender in every state. For example, policymakers need to raise the minimum wage, increase workers’ access to a union, implement pro-family policies like affordable child care and paid leave, and make our tax system fairer. In the face of anti-worker policies at the federal level, state lawmakers have an opportunity and responsibility to champion policies that enable workers and families to thrive.
Note
1. According to the data released on Tuesday from the Current Population Survey (CPS), U.S. median household income in 2024 was $83,730—a small (1.3%) but not statistically significant change from 2023. The 2024 value was also essentially the same as that from 2019 ($83,260). The ACS data released Thursday show that median household income rose 2.0% nationally from 2023 to 2024. The differences between these values reflect differences in the methodologies of the two surveys that make them not directly comparable; however, the fact that the ACS change was a statistically measurable increase validates the direction of the change reported by the CPS.
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