Family incomes rose and the national poverty rate edged lower in 2025, according to an annual Census Bureau report that offers a mixed picture of household financial security. Average family income increased 2.6% after accounting for inflation, reaching $87,460. The official poverty rate fell to 10.2%, down from 10.7% in 2024. About 34.5 million people were below the poverty line last year, compared with 36 million in 2024. The gains were not shared evenly. Families in the top 10% of earners saw income rise 1.7%, while incomes for the bottom 10% changed little. Black families recorded the largest average income increase, 4.8%, but their median income was $59,980—well below the median for white families, at $91,930, and Asian families, at $126,300. A broader Census measure that accounts for taxes, government benefits and expenses such as medical costs put the poverty rate at 13.1% in 2025, essentially unchanged from the previous year. That measure reflects the role of programs including the Supplemental Nutrition Assistance Program in helping households afford food and avoid poverty. Those supports are now under pressure. Cuts included in a sweeping tax package passed by the Republican-controlled Congress are scaling back some safety-net programs, and the effects are expected to appear in future poverty data. Food insecurity is also expected to rise as assistance is reduced. “Things like SNAP and Medicaid made a really big difference in lowering poverty and expanding health coverage,” said Sharon Parrott, president of the Center on Budget and Policy Priorities. She said lawmakers should have built on those gains rather than reducing food and health assistance. Health insurance coverage held steady in 2025. That stability may not last: enhanced subsidies for Affordable Care Act plans have expired, and stricter Medicaid work requirements are scheduled to begin next year. Those changes could leave more people uninsured, adding pressure to household budgets and community health providers. The report arrives as inflation remains a concern. Prices had been rising faster than average wages for five consecutive months, threatening to erode the purchasing-power gains recorded during 2025. For families already near the poverty line, even modest increases in food, housing or medical costs can quickly outweigh higher earnings. The data suggest that economic improvement cannot be measured by wages alone. Whether families can keep food on the table, maintain health coverage and manage essential expenses will depend in significant part on the public programs available to them.