Despite the severe economic disruptions brought about by the pandemic, government aid led to a decline in poverty last year.

Census Bureau numbers show a nationwide drop in poverty from 2019 to 2020 (11.8% to 9.1%), when accounting for social safety net benefits and federal pandemic relief efforts. In California, federal stimulus payments (also known as economic impact payments) and key expansions to unemployment insurance (UI) helped millions make ends meet.

California saw a similar decline in poverty—from 16.2% to 12.3%—compared with the nation as a whole. The state’s poverty rate nonetheless remains higher than the nationwide rate. California has long been a high-poverty state, as the boost that families get from safety net programs is often outweighed by high housing costs. (INT)

Story Date: September 28, 2021