Meet ALICE: 29% of American households who earn above poverty level but don't have enough to make ends meet

How do the ALICE Essentials Index and the CPI compare? The ALICE Essentials Index rate (currently still a projection) increased to an annual rate of 7.3% from 2021 to 2023, compared with a CPI-based annual rate of 6.1% for those years, according to the recent ALICE report.

Why is the ALICE-generated inflation rate higher than the CPI? It’s because the ALICE Essentials Index tracks only the basic categories of living expenses, whereas the CPI tracks a broader range of goods and services, according to the ALICE report. For more than a decade, the rise in the cost of these essentials has outpaced the price increases for the CPI’s larger basket of goods and services, the report states.

“ALICE faces a higher rate of inflation, and has been facing a higher rate for a long time,” says director Hoopes.

ALICE statistics by state

Designed by researchers with the United for ALICE program, the ALICE Essentials Index is an inflationary measure comprising six core household spending categories. The data shows this rate jumped to a national level of 7.3% (still a projected number) from 2021 to 2023. Broken down by state, Arizona saw the highest increase (10.4%), while Hawaii saw the lowest (1.7%).

Nationally, 42% of households had income below the ALICE threshold in 2022. This included 29% who were ALICE and 13% who were in poverty. The state with the highest percentage of households below the ALICE threshold was Mississippi (52%), while the state with the lowest percentage was Alaska (33%).

Where ALICE can get help

Federal Poverty Levels are used to determine eligibility for certain federal assistance programs. In 2024, individuals earning less than $15,060 qualify for benefits, while families of four earning less than $31,200 qualify.

By definition, ALICE individuals earn amounts higher than the Federal Poverty Level, making them ineligible for benefits. No matter your income level, there are various non-governmental resources available if you’re struggling to make ends meet.

“The main place we see ALICE getting assistance is food banks,” Hoopes says. “They provide food for anyone who’s hungry, and they don’t normally ask for income verification or any justification. If you’re hungry, you’re hungry.”

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