Poverty and Income Security

Numerous federal programs and policies aim to reduce poverty, alleviate some of poverty's adverse consequences, enhance the security of people’s incomes, and affect the distribution of income and economic well-being. CBO provides cost estimates for legislative proposals related to those programs and policies. The agency also conducts in-depth analyses of the budgetary and other effects of those programs and policies and of options for changing them. (A separate page on Social Security provides additional information on CBO’s work in that area.)

Report
Projected Changes in the Distribution of Household Income, 2016 to 2021
December 19, 2019
This report projects the distributions of household income, means-tested transfers, and federal taxes under current law in 2021 and compares them with the actual distributions in 2016.
Interactive
How Increasing the Federal Minimum Wage Could Affect Employment and Family Income
November 7, 2019
This interactive tool allows users to explore how various policies to increase the federal minimum wage would affect earnings, employment, family income, and poverty.
Report
The Distribution of Household Income, 2016
July 9, 2019
In 2016, average household income before accounting for means-tested transfers and federal taxes was $21,000 for the lowest quintile and $291,000 for the highest quintile. After transfers and taxes, those averages were $35,000 and $214,000.
Report
The Effects on Employment and Family Income of Increasing the Federal Minimum Wage
July 8, 2019
The federal minimum wage is $7.25 per hour for most workers. In this report, CBO examines how increasing the federal minimum wage to $10, $12, or $15 per hour by 2025 would affect employment and family income.