California continues to have the highest poverty rate in the United States, tied with Louisiana at 17.7%, according to the U.S. Census Bureau’s latest data. Despite a decrease from 18.9% in 2023, nearly 7 million Californians struggled to afford basic necessities like food, housing, and medical care in 2024. The supplemental poverty measure (SPM) highlights these challenges, considering factors like high living costs and out-of-pocket medical expenses.
Laura Pryor, research director at the California Budget & Policy Center, explained that the poverty rate fell to a historic low of 11% after federal policies were implemented during the COVID-19 pandemic. However, as these policies expired, many Californians were pushed back into poverty. Pryor noted that the situation is particularly severe for seniors and children, especially those in mixed-status households. The child poverty rate in California more than doubled from 7.5% in 2021 to 18.6% in 2024.
The Sacramento Bee reports that renters, especially from communities of color, are disproportionately affected, with 27.1% of California renters living in poverty compared to 11.1% of homeowners. Federal and state budget cuts to health and food assistance programs have exacerbated these issues, leading to increased economic hardship.
The California Budget & Policy Center emphasized the need for state leaders to take bold action to address these challenges. They suggest raising revenue from corporations and wealthy individuals who benefited from federal tax cuts. Without intervention, recent federal actions are expected to deepen racial and ethnic disparities, leaving Californians of color with fewer resources.
Looking ahead, state policymakers are closely monitoring federal budget negotiations, as future funding allocations could significantly impact California’s poverty rates.
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