Income Support: OMB Seeking Comments on Federal Poverty Level Inflation Measures

On May 7, the Office of Management and Budget (OMB) issued a notice of solicitation of comments on how to measure inflation for purposes of determining the federal poverty level. The agency currently uses the Consumer Price Index for All Urban Consumers (CPI-U) to calculate inflation. One option being considered is the Chained Consumer Price Index for All Urban Consumers (C-CPI-U). The C-CPI-U will result in a lower estimation of inflation than under current practice. Over time, this change would result in people losing eligibility for these critical programs. The Federal Poverty Level (FPL) is used to determine eligibility for several means-tested benefits, including Medicaid and the Supplemental Nutrition Assistance Program (SNAP).

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