Report: About 1 in 3 New Jersey residents struggle to afford basic needs
Legal Services of New Jersey says more than 3 million residents faced "true poverty" in 2024, arguing the federal poverty measure fails to reflect the state's high cost of living.
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More than 3 million New Jersey residents experienced financial hardship in 2024 when the state's cost of living is taken into account, according to a new report from Legal Services of New Jersey that argues the federal poverty measure significantly undercounts those struggling to make ends meet.
The report, released by the nonprofit's Poverty Research Institute in June, estimates that about 3.1 million New Jerseyans, or 33.1% of the state's population, lived below what it calls the "True Poverty Level," compared with about 859,000 residents, or 9.2%, counted under the federal poverty level. Researchers said the difference amounts to more than 2.2 million residents whose financial hardship is not reflected by the federal measure.
The institute said its "True Poverty Level" adjusts for New Jersey's higher cost of living, while the federal poverty threshold applies the same income standard nationwide regardless of differences in housing, childcare, transportation and other living expenses. The report argues the federal formula, developed more than 60 years ago, does not adequately reflect the cost of living in high-cost states such as New Jersey.
According to the report, more than 823,000 New Jersey children, about 1.68 million working-age adults and nearly 585,000 seniors fell below the institute's poverty measure in 2024. It also found higher rates of financial hardship among Hispanic and Black residents than among white and Asian residents.
The report is based on 2024 U.S. Census Bureau American Community Survey data but applies Legal Services of New Jersey's alternative poverty methodology rather than the federal poverty level. Researchers said the federal measure remains the official standard used by the U.S. government to track poverty and determine eligibility for many public assistance programs.
