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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.
In 2015, around 170 million people, or 12.4%, lived in poverty (defined as $1.90 (Rs 123.5)), a reduction from 29.8% in 2009. The World Bank has revised its definition and benchmarks to measure poverty since 1990, with a $2 per day income on purchasing power parity basis as the definition in use from 2005 to 2013.