What does the Federal Poverty Level (FPL) estimate?

The Federal Poverty Level (FPL) is designed to estimate the minimum amount an individual or family requires to meet basic living expenses, such as food, shelter, and healthcare. This benchmark is critical for determining eligibility for various social programs and assistance, including Medicaid, food assistance programs, and other types of financial aid. The FPL is updated annually and reflects changes in the economy, ensuring that it remains a relevant gauge for assessing poverty.

The purpose of the FPL is specifically tied to identifying individuals and families who may be in need of financial support to cover essential living costs, making it a vital tool in social policy and welfare programs. Understanding this context can help clarify why this choice accurately reflects the function of the Federal Poverty Level.