U.S. News

Federal COVID-19 aid lifted 12M in U.S. out of poverty in 2020, report says

By Clyde Hughes   |   Sept. 14, 2021 at 1:18 PM
In its report, the Census Bureau said the direct stimulus payments alone lifted 11.7 million Americans above the poverty line. File Photo by John Angelillo/UPI The U.S Capitol is seen on Capitol Hill in Washington, D.C., on December 28, 2020. On that date, the House voted on a measure to increase direct stimulus payments to Americans to $2,000 each. File Photo by Ken Cedeno/UPI President Donald Trump signs the $2.2 trillion CARES Act in the Oval Office of the White House in Washington, D.C., on March 27, 2020. The bill provided direct stimulus payments to millions of Americans struggling due to the coronavirus pandemic. File Photo by Erin Schaff/UPI Lawmakers display the $2.2 trillion CARES Act at the U.S. Capitol in Washington, D.C., on March 27, 2020 in Washington, D.C. The stimulus bill provided direct payments to Americans struggling due to the COVID-19 pandemic. File Photo by Stefani Reynolds/UPI Senate Republican leader Mitch McConnell gives a thumbs up as he heads to the Senate chamber on Capitol Hill in Washington, D.C., on March 25, 2020. The Senate approved a $2 trillion coronavirus relief bill after landmark agreement with White House. File Photo by Tasos Katopodis/UPI

Sept. 14 (UPI) -- Large-scale stimulus efforts, including direct payments to millions of Americans, by the government last year in response to the COVID-19 pandemic helped lift almost 12 million people out of poverty, according to figures published Tuesday by the Census Bureau.

The bureau noted the changes in its Current Population Survey Annual Social and Economic Supplement.

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According to Census figures, the official U.S. poverty rate in 2020 actually increased one percentage point to 11.4%, amounting to 37.2 million people.

However, the poverty figure doesn't account for "supplemental poverty measures," which include government programs designed to help low-income families and individuals with provisions like child support and food stamps.

Other income also included stimulus payments and other economic relief packages, like the one passed by Congress in March 2020 in response to COVID-19.

"In 2020, the overall [supplemental poverty measure] rate was 9.1%," the report said. "This was 2.6 percentage points lower than the 2019 rate."

The bureau said the rate last year was 2.3 points lower than the official poverty rate of 11.4%.

"This is the first time in the history of the SPM where poverty is lower using the SPM than the official poverty rate."

In its report, the Census Bureau said the direct stimulus payments alone lifted 11.7 million Americans above the poverty line.

Social Security, it added, also played a critical role and helped 26.5 million people in the United States in 2020.

Without the government's relief efforts, the report said, the U.S. poverty rate would have been close to 13%.

"There were 11 states plus the District of Columbia for which SPM rates were higher than official poverty rates, 30 states with lower rates, and nine states for which the differences were not statistically significant," the bureau said.

Congress passed two direct stimulus payments to millions of Americans in 2020. The first in March was $1,200 for most recipients and the second in December was $600.