How often is the federal poverty level updated?

The federal poverty level is updated every year to reflect changes in the economy and ensure that it accurately represents the cost of living and inflation. This annual adjustment allows for a more precise measurement of poverty thresholds, taking into account variations in income and living costs across different regions. By updating the poverty level annually, the government can better assess eligibility for various assistance programs, ensuring that the support provided aligns with the most current economic realities. This process is crucial for determining eligibility for programs like Medicaid and the Children's Health Insurance Program (CHIP), which often rely on the federal poverty guidelines.