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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.
Right now, approximately 100 million Americans are either âpoorâ or ânear poorâ. For a lot of people âpovertyâ can be a nebulous concept, so letâs define it. The poverty level as defined by the federal government in 2010 was $11,139 for an individual and $22,314 for a family of four.