U.S. Census data released this week shows slight improvements in poverty rates and median household income in Kentucky in 2024, but fewer Kentuckians were covered by health insurance last year as COVID protections came to an end. And this year’s federal budget and tax bill, H.R. 1, combined with depleting state revenues threatens to move the state backward on recent economic progress.
The newly released numbers from the American Community Survey (ACS) 1-year estimates show recent improvements that are likely due to the strong economy created by COVID-19 stimulus funds and federal job-creating investments in infrastructure and clean energy:
• The statewide poverty rate based on the Official Poverty Measure (OMP) decreased from 16.4% in 2023 to 15.6% in 2024.
• The OPM rate for child poverty decreased from 21% to 19.3%.
• The median household income increased from $61,118 to $64,526.
However, Kentucky still has one of the highest poverty rates in the country, including for children living below the poverty level. By choosing not to reinstate the expanded the Child Tax Credit for everyone – including as many as 308,000 Kentucky children currently shut out of receiving the full credit – in the H.R. 1 mega-bill passed over the summer, federal lawmakers missed an opportunity to reduce child poverty. And while there were gains in median household income across the board, deep disparities across racial groups persist. For example, the median income for Black households in Kentucky was $47,881 in 2024, while the median household income for white Kentuckians was $66,749. Similarly, the poverty rate for people in the 5th Congressional District of eastern Kentucky was 24.3% in 2024, compared to 15.6% for the state as a whole.
The Census data shows that the end of policies put in place during the pandemic to keep people covered has already caused a dip in marketplace coverage. Overall, Kentucky’s rate of uninsured people rose from 5.4% in 2023 to 6.8% in 2024. The rate of uninsured children in the state increased from 3.4% to 5.0%, and the rate of uninsured Hispanic or Latino Kentuckians increased from 20.2% to 24.4%.
That trend is likely to continue given the coming expiration of enhanced premium tax credits, which help people afford the high cost of health insurance on kynect, and the work reporting requirements designed to cut Medicaid. These changes are expected to cause 282,000 more Kentuckians to become uninsured or lose health care in coming years in addition to putting 35 of the state’s hospitals at risk of closure.
Even though the Supplemental Nutrition Assistance Program (SNAP) helps one in eight Kentuckians keep food on the table, with children, older adults and people with disabilities particularly benefitting from this vital program, the massive cuts to SNAP in H.R. 1 will take food away from 562,000 Kentuckians, including children, workers, veterans, seniors, people with disabilities and chronic health conditions and many others.
“We know how to reduce poverty with programs like Medicaid, the Child Tax Credit and food assistance,” said Patience Martin, State Policy Fellow for the Kentucky Center for Economic Policy. “But cuts passed by Congress this summer to these life-sustaining programs will derail progress for all of us, but especially those living in rural areas and Black Kentuckians, who already experience higher uninsured rates and lower incomes due to systemic inequities.”
“Every Kentuckian should be able to take their child to the doctor, afford medication for serious health conditions, or go to the hospital if they are injured. No one should be forced to go hungry because of the high cost of food. And yet, our nation’s hallmark budget and tax policies now prioritize huge tax breaks for the wealthiest people at the expense of everyone else.”
Kentucky Center for Economic Policy