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DEFINITION of 'Federal Poverty Level-FPL'. The set minimum amount of gross income that a family needs for food, clothing, transportation, shelter and other necessities. In the United States, this level is determined by the Department of Health and Human Services. FPL varies according to family size. The number is adjusted for inflation and reported annually in the form of poverty guidelines. Public assistance programs, such as Medicaid in the U.S., define eligibility income limits as some percentage of FPL.
The True US Poverty Rate Is 4.5%, Not 14.5%. The official US poverty number is 14.5%. Thatâs the percentage of the population that are below the official poverty line. However, thatâs not actually as useful a number as many seem to think that it is. Thereâs a number of strangenesses about how that number is worked out and it might well be more accurate to say that the US poverty number is 4.5%.