Sen. John Kennedy (R-LA) discussed how the Census Bureau measures poverty during a February 10, 2026, hearing at the Senate Commerce Justice Science Appropriations Subcommittee hearing with Commerce Secretary Harold Lutnick.
Kennedy noted that, since the Census Bureau, which is under the Commerce Department’s jurisdiction, “is in charge of defining what it means to be poor or in poverty in America,” that the Bureau says “around 11 percent” of Americans “live at or below the poverty level.”
However, he said, “When the Census Bureau defines poverty using income, they only count income that the individual earns or cash income that the individual gets from the federal government. … So, so if a person makes $11,000 a year, that’s considered toward poverty level. But if the person gets a cash payment, let’s say in the form of SSI or TANF, that counts too. … Are you aware that your agency doesn’t count non-cash payments from the Federal Government defining poverty?”
Lutnick expressed his uncertainty on the topic.
Sen. Kennedy continued, asking if Lutnick was “aware that your agency doesn’t count refundable earned income tax credits or food stamps or housing subsidies or utility bill subsidies or Medicaid or free school meals? They don’t count that. They call it a non-cash payment and it doesn’t count. You aware of that?”
Secretary Lutnick responded that, “It sounds to me that you and I are going to spend some time together and we’re going to change it, but I did not know that. And it sounds like something that we should add.”
Kennedy clarified that his purpose was “not to punish people who need help. The American people are the most generous people in the world. That’s why we spend $1.4 trillion a year helping people that other countries would allow to die in a ditch. But your Census Bureau says it’s 11% who live at or below the poverty level. That’s a lie. It’s 1%. If you count as, as any person with a brain above a single cell organism would, cash and non-cash payments, they’re not, they’re above the poverty level. And we ought to be honest with the American people and thank them for getting the poverty level down to 1% instead of giving them a curb stomping and calling them selfish.”
The Senator then provided a “real life” case example. “Let’s suppose you’ve got a mom and two kids. According to your Census Bureau, the poverty level for her is $27,000. She makes $11,000 a year, let’s say. So she’s below the poverty level. But she also qualifies for $3,400 in refundable tax credits based on her $11,000 salary, $9,200 in food stamps, that’s for her and her two children, $9,500 in housing subsidies, $900 in utility bill subsidies, $16,000 in Medicaid, $3,100 a year in free school lunches, and $6,600 a year in TANF. That’s $64,100 a year, tax free. Is she living in poverty?”
The Commerce Secretary replied that it did not sound like she was living in poverty.
“No, but your Census Bureau counts her as being poor,” Kennedy continued. “I’m not saying take away her benefits. I’m saying give the American people a little credit. And I really think you need to change the definition to a definition that looks like somebody designed the damn thing on purpose.”
The entire hearing, as well as this exchange, can be viewed on the Senate Appropriations Committee website at: Hearing | Hearings | United States Senate Committee on Appropriations
