Trump may redefine poverty, cutting Americans from welfare rolls

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Trump may redefine poverty, cutting Americans from welfare rolls
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The Trump administration may change the way it determines the national poverty threshold, putting Americans living on the margins at risk of losing access to welfare programs.

The possible move would involve changing how inflation is calculated in the “official poverty measure,” the White House Office of Management and Budget said in a regulatory filing Monday. The formula has been used for decades to determine whether people qualify for certain federal programs and benefits.The measure, first set in the 1960s, is calculated at three times the cost of a minimum food diet and adjusted every year as prices rise.

One proposal the Office of Management and Budget suggested in the filing was to shift to chained consumer price index, or chained CPI, which regularly shows a slower pace of price gains than traditional measures. Chained CPI shows slower inflation growth because it assumes consumers will substitute less-expensive items when prices for specific individual goods increase significantly.

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