Understanding Poverty

What do we mean by poverty and how do can it be measured? A broad spectrum of individuals and families in New Jersey struggle economically. They include people with very low incomes, who face dire deprivation and daily sacrifices, as well as many among the working poor, who often are ignored in official poverty statistics, but who nevertheless experience real and harmful economic challenges. Since CSBG funding uses the federal poverty level (FPL) for eligibility, data includes the FPL and census information.

It is widely understood and acknowledged that the federal poverty measure is not sufficient to measure the poverty especially with increased cost of living expenses in recent years. Still, the FPL is what measures eligibility so until it changes CSBG services are tied to the FPL. The FPL for 2024 is $15,060 per year for an individual and $20,440 per year for a family of two. In 2022, New Jersey’s poverty rate was 9.7%. Poverty rates vary by county, with Essex County having the highest rate at 15.7% and Hunterdon County having the lowest at 3.6% (Census, 2022).

New Jersey Poverty Trends

While the state’s poverty rate is lower than the national rate, the state number obscures the true scope of economic struggle in New Jersey because of our cost of living. Nationally, New Jersey ranks as one of the most expensive states to live in and has the second highest median income for households with children, trailing behind Massachusetts.

The cost of living puts extra stress on those struggling financially. Poverty levels are also higher for segments of the population. For example, in 2022, the poverty rate for children in New Jersey was 13% and for children under five, it was even higher at 14.3%.

How poor are New Jersey municipalities?

Essex County and Cumberland County have the highest poverty rate in New Jersey, at 15.7% and Hunterdon County has the lowest at 3.6%. The New Jersey State Health Assessment Data highlights the disparity of individuals below the poverty level by county NJ DOH SHAD Portal.

Using federal standards, a family of four is considered "in poverty" if they bring in less than $25,900 per year (2018 federal poverty threshold). An individual (one-person family) under age 65 would have to earn more than $13,064 to be above the poverty line, while, for an individual over age 65, the 2018 level is $12,043.

In New Jersey, more than 387,000 individuals lived in "deep poverty" in 2017, meaning their earnings didn't even add up to half the poverty line, the report said.

In more than 60 percent of New Jersey's poor families, at least one person had a job at some point during 2017.

The snapshot found that children in New Jersey are more likely to live in property than any other age group. In 2017, nearly 14 percent of Garden State children lived in poverty, compared to 18.4 percent nationally. The rate of poverty was even greater among African American and Latino children.

As long as poverty exists in New Jersey, Community Action Agencies are needed to provide a safety net and respond to community needs.

Impact of CSBG Network on Poverty

The Community Services Block Grants network tackles the complex issues of poverty by addressing the needs of individuals, families and communities within such domains as employment, education, health, housing and more.

Using programs and services tailored to local needs, Community Action Agencies develop human capacity and decrease dependency. The CSBG Network is working daily to help families become stable and achieve economic security.

Across the country, over 1,000 eligible entities receive Community Services Block Grant funding annually.

Nationally, CSBG network outcomes from federal fiscal year 2017 include:

• 800,000 low-income households increased financial assets or skills.
• 4 million families reduced or eliminated barriers to stability through access to childcare, food assistance, after-school programs, and more.
• Agencies created or expanded 3.1 million community resources, including public facilities, local businesses, and other entities.
• Total volunteer hours donated were valued at just over $1 billion.
• 116,000 housing units were weatherized, preserved, or otherwise improved.
• 339,000 people obtained safe, affordable housing.
• 167,000 people obtained a job.

Calculating eligibility for CSBG services

Eligibility for CSBG services is calculated at 125 percent of the federal poverty level. This chart shows income limits by size of household calculated for 2020.