I 
110TH CONGRESS 
2D SESSION 
H. R. 6941 
To amend title XI of the Social Security Act to provide for an improved 
method to measure poverty so as to enable a better assessment of 
the effects of programs under the Social Security Act, and for other 
purposes. 
IN THE HOUSE OF REPRESENTATIVES 
SEPTEMBER 18, 2008 
Mr. MCDERMOTT introduced the following bill; which was referred to the 
Committee on Ways and Means, and in addition to the Committee on 
Oversight and Government Reform, for a period to be subsequently deter-
mined by the Speaker, in each case for consideration of such provisions 
as fall within the jurisdiction of the committee concerned 
A BILL 
To amend title XI of the Social Security Act to provide 
for an improved method to measure poverty so as to 
enable a better assessment of the effects of programs 
under the Social Security Act, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Measuring American 
Poverty Act of 2008’’. 
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SEC. 2. FINDINGS. 
The Congress finds as follows: 
(1) On January 22, 2008, the House of Rep-
resentatives, by voice vote, passed House Concurrent 
Resolution 198 expressing the sense of the Congress 
that the United States should set a national goal of 
cutting poverty in half over the next 10 years. 
(2) The poverty rate is a critical indicator of 
how widely shared prosperity is in the economy, and 
a key benchmark for targeting resources towards the 
most disadvantaged. 
(3) The official poverty measure, while helpful, 
is based on outdated assumptions and fails to accu-
rately measure economic deprivation or take into ac-
count the availability of many economic resources. 
(4) The official poverty measure offers inad-
equate guidance about the effectiveness of public 
anti-poverty efforts. 
(5) In 1995, the National Academy of Sciences’ 
Panel on Poverty and Family Assistance rec-
ommended adoption of an improved poverty meas-
ure, which addresses many shortcomings of the offi-
cial poverty measure and which remains relevant 
and offers a starting point for an improved measure. 
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ing any calendar year before 2009 for which the informa-
tion needed to perform the calculations is available or can 
be estimated with a reasonable degree of confidence, as 
determined by the Bureau of the Census) in accordance 
with this section. 
‘‘(b) MODERN POVERTY THRESHOLDS.— 
‘‘(1) CALCULATION FOR REFERENCE FAMILY.— 
‘‘(A) IN GENERAL.—The modern poverty 
threshold for a reference family consisting of 2 
adults and their 2 related children shall be an 
amount equal to the average of 120 percent of 
the 33rd percentile of the distribution of annual 
expenditures by such families on food, clothing, 
and shelter (including utilities) during each of 
the 3 most recent years for which data is avail-
able from the Consumer Expenditure Survey, a 
superior Federal Government source of data, or 
some combination of such sources. 
‘‘(B) 
SPECIAL
RULE.—Notwithstanding 
any other provision of this section, insofar as 
the amounts described in subparagraphs (F) 
and (G) of subsection (c)(3) are not easily in-
cluded in the distribution of expenditures re-
ferred to in subparagraph (A) of this para-
graph, the Bureau of the Census and the Bu-
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reau of Labor Statistics shall develop methods 
for including, and shall include, the actual or 
estimated amounts in the distribution of ex-
penditures 
‘‘(2) ADJUSTMENT FOR FAMILY SIZE AND COM-
POSITION, 
AND
FOR
GEOGRAPHIC
COST
VARI-
ATION.—The Bureau of the Census shall adjust the 
modern poverty threshold calculated under para-
graph (1)— 
‘‘(A) for other family sizes and composi-
tions, using the best available equivalence scales 
that consider economies of scale; and 
‘‘(B) to the maximum extent possible, for 
differences in the costs for the goods and serv-
ices included in the threshold among States, 
sub-State non-metropolitan areas, and metro-
politan areas, based on the best available data 
on the costs. 
‘‘(3) ACCOMMODATION OF HOUSING STATUS.— 
To the maximum extent possible, the calculation for 
the threshold for the reference family described in 
paragraph (1) and the adjustments to the modern 
poverty thresholds for varied family sizes and com-
positions under paragraph (2)(A) shall be made sep-
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arately for each of the following categories of fami-
lies: 
‘‘(A) Families making rent payments for 
their primary residence, or who own their pri-
mary residence and have a mortgage secured by 
the residence. 
‘‘(B) Families who own their primary resi-
dence and do not have such a mortgage. 
‘‘(4) ANNUAL PUBLICATION OF WEIGHTED AV-
ERAGE POVERTY THRESHOLDS.—Not less often than 
annually, the Bureau of the Census, in collaboration 
with the Bureau of Labor Statistics, shall publish— 
‘‘(A) the average poverty threshold for 
each family size, determined by weighting each 
threshold by the proportion of families of that 
size to which the threshold applies, and 
‘‘(B) the average poverty threshold for 
each family size in each category described in 
paragraph (3), determined by weighting each 
threshold by the proportion of families of that 
size in that category and to which the threshold 
applies. 
‘‘(c) MODERN POVERTY RATES.— 
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‘‘(1) IN GENERAL.—The Bureau of the Census 
shall use the modern poverty thresholds calculated 
under subsection (b) to calculate— 
‘‘(A) the number and percentage of fami-
lies in the United States whose adjusted market 
income does not exceed the applicable modern 
poverty threshold, and the number and percent-
age of individuals in the United States who are 
members of such families; 
‘‘(B) the number and percentage of fami-
lies in the United States whose adjusted dispos-
able income does not exceed the applicable mod-
ern poverty threshold, and the number and per-
centage of individuals in the United States who 
are members of such families; and 
‘‘(C) the numbers and percentages de-
scribed in subparagraphs (A) and (B) for var-
ious demographic, geographic, and other sub-
groups of families in the United States, and for 
individuals who are members of such subgroups 
of families. 
‘‘(2) ADJUSTED
MARKET
INCOME.—For pur-
poses of this section, the adjusted market income of 
a family is— 
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‘‘(A) the total of the amounts received by 
any member of the family during a calendar 
year from wages, salaries, and self-employment 
income, interest income, dividend income, real-
ized capital gains, rents, royalties, estate and 
trust income, a qualified retirement plan (as de-
fined in section 4974(c) of the Internal Revenue 
Code of 1986), a plan described in section 
457(b) of such Code, or any other plan, con-
tract, annuity, or account payments or distribu-
tions from which are in the nature of a retire-
ment benefit, survivor and disability pensions 
and annuities, paid-up insurance policies, ali-
mony payments, child support payments, pri-
vate workers’ compensation, regular contribu-
tions from persons not living with the family, 
and other relevant income as determined by the 
Bureau of the Census except for income de-
scribed in subparagraph (C), (D), (E), or (F) 
of paragraph (3) of this subsection; minus 
‘‘(B) the total of the amounts paid by any 
member of the family during the calendar year 
for alimony or the support or maintenance of a 
noncustodial child, or to cover health care ex-
penses or necessary work-related expenses, in-
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cluding child care and transportation expenses, 
and capping necessary work-related expenses at 
the lesser of the earnings of the parent with 
lesser earnings or another reasonable cap tied 
to the median expenditures of the reference 
family or Federal program and tax credit poli-
cies as determined by the Bureau of the Census 
in collaboration with the Bureau of Labor Sta-
tistics. 
‘‘(3) ADJUSTED
DISPOSABLE
INCOME.—For 
purposes of this section, the Bureau of the Census 
shall define the adjusted disposable income of a fam-
ily as follows, excluding any amounts that the Bu-
reau of the Census, in collaboration with the Bureau 
of Labor Statistics, believes are not included in the 
distribution of expenditures referred to in subsection 
(b)(1) of this section or whose inclusion in the ad-
justed disposable income of a family would otherwise 
be inconsistent with the modern poverty thresholds 
described in subsection (b): 
‘‘(A) the adjusted market income of the 
family; minus 
‘‘(B) the total of the amounts paid by any 
member of the family during the calendar year 
to cover Federal income tax liability or Federal 
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which is based, in whole or in part, on 
need; plus 
‘‘(E) the total dollar value of any food as-
sistance benefit (as defined in section 3(d) of 
the Food and Nutrition Act of 2008) received 
by any member of the family during the cal-
endar year under section 8 of the Food and Nu-
trition Act of 2008; plus 
‘‘(F) the total of the amounts received by 
any member of the family during the calendar 
year as described in section 2605(b)(2) of the 
Low-Income Home Energy Assistance Act of 
1981; plus 
‘‘(G) the total of the amounts received by 
any member of the family during the calendar 
year as government-funded nonmedical in-kind, 
cash and near cash benefits that help families 
meet food, clothing, and shelter (including utili-
ties) needs, including nutrition programs, hous-
ing subsidies, and the value of public housing, 
not to exceed to the lesser of the share of the 
threshold defined in subsection (b) attributable 
to the component of the threshold towards 
which the benefit may be used or the estimated 
monetary value of the benefit to the recipient, 
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to the extent possible and to the extent that ex-
penditures of the amounts are taken into ac-
count in determining poverty thresholds under 
this section. 
‘‘(4) INCLUSION OF STATE AND LOCAL TAXES 
AND TRANSFERS.—Within 5 years after the date of 
the enactment of this section, the Bureau of the 
Census, in collaboration with the Bureau of Labor 
Statistics, and after consultation with other relevant 
statistical agencies, shall modify the calculation 
under paragraph (3) to take account of State and 
local taxes and transfers. 
‘‘(d) FAMILIES.—For purposes of this section, the 
term ‘family’ includes— 
‘‘(1) an individual who is living alone; 
‘‘(2) all members of a household who are re-
lated by blood, marriage, adoption, or other legal ar-
rangement; and 
‘‘(3) any unrelated individuals living together 
whom the Bureau of the Census, after assessing ex-
isting research and undertaking any necessary new 
research, determines should be treated as a family 
for purposes of this section. 
‘‘(e) REPORT ON POVERTY RATES.—Not less fre-
quently than annually, the Bureau of the Census shall 
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produce, and make readily accessible to the public, a re-
port which contains detailed tables and explanations of 
poverty rates— 
‘‘(1) as determined on the basis of adjusted 
market income; 
‘‘(2) as determined on the basis of adjusted dis-
posable income; and 
‘‘(3) as determined on the basis of the tradi-
tional poverty measure referred to in subsection (f). 
‘‘(f) REFERENCES TO EXISTING POVERTY MEASURE 
AS THE ‘TRADITIONAL POVERTY MEASURE’.—To the ex-
tent practicable, whenever an officer or employee of the 
Federal Government refers to the poverty measure out-
lined in Office of Management and Budget Statistical Pol-
icy Directive 14, the officer or employee, as the case may 
be, shall refer to that measure as the ‘traditional poverty 
measure’. Any reference in a law, regulation, document, 
paper, or other record of the United States to the poverty 
measure outlined in Office of Management and Budget 
Statistical Policy Directive 14 is deemed to be a reference 
to the ‘traditional poverty measure’. 
‘‘(g) INCLUSION OF INFORMATION BASED ON MOD-
ERN POVERTY THRESHOLDS AND RATES IN PUBLISHED 
DOCUMENTS CONTAINING INFORMATION BASED ON TRA-
DITIONAL POVERTY THRESHOLDS AND RATES.— 
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‘‘(1) IN GENERAL.—To the extent possible, a 
relevant Federal statistical agency that publishes a 
document which contains information about a sub-
ject, which was produced using the poverty measure 
outlined in Office of Management and Budget Sta-
tistical Policy Directive 14, shall include in the docu-
ment information about the subject, which is pro-
duced using the modern poverty thresholds and mod-
ern poverty rates calculated under this section. 
‘‘(2) PUBLIC
RELEASE
OF
MICRODATA
FILE 
AND ONLINE TOOLS.—On releasing a document de-
scribed in paragraph (1), the Bureau of the Census 
shall release to the public— 
‘‘(A) microdata files containing all of the 
individual variables that are necessary to com-
pute the published modern poverty rates, as 
well as poverty rates determined on the basis of 
the traditional poverty measure referred to in 
subsection (f), and to calculate poverty rates 
using different definitions of income and pov-
erty thresholds; 
‘‘(B) other public online tools that enable 
poverty rates to be calculated using different 
definitions of income and poverty thresholds; 
and 
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‘‘(C) the definitions of income set forth in, 
and the poverty thresholds established under, 
this section. 
‘‘(h) CONSULTATION ON IMPROVING CALCULATION 
OF THE MODERN POVERTY THRESHOLDS OR MODERN 
POVERTY RATES; REPORT TO THE CONGRESS.—From 
time to time, and no less frequently than every 5 years, 
the Bureau of the Census, in collaboration with the Bu-
reau of Labor Statistics, shall— 
‘‘(1) consult with other relevant Federal statis-
tical agencies and outside experts on whether the 
method of, and sources of data for, calculating the 
modern poverty thresholds or modern poverty rates 
provided for in this section could be improved so as 
to better measure the extent to which families in the 
United States are able to secure sufficient income to 
allow a minimal, socially acceptable, level of con-
sumption that meets their basic physical needs, in-
cluding food, clothing, shelter (including utilities), 
and other necessary items; and 
‘‘(2) report to the Congress on any need for any 
such improvement. 
‘‘(i) NO EFFECT ON BENEFIT PROGRAMS.—This sec-
tion shall not be interpreted to modify or authorize modi-
fication of eligibility of any entity for, or the amount or 
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