Understanding the True Extent of Financial Hardship in Indiana

The number of households in financial hardship in Indiana continues to be undercounted using the Federal Poverty Level (FPL), and as a result, a significant number of families do not qualify for critical supports needed to achieve financial stability. Indiana United Ways and United Way of Central Indiana, in collaboration with its research partner United for ALICE, recently released its newest calculations for cost of living in counties across Indiana based on conditions that emerged during the COVID pandemic.

The ALICE Household Survival Budget (which represents the bare minimum cost of household basics needed to live and work in the modern economy) is calculated separately for each county, differs based on household size and composition, and is updated as costs and household needs change over time. Households falling below the ALICE Threshold are considered ALICE (Asset-Limited, Income-Constrained, Employed). This group includes both those in poverty (with income below the FPL) and those that are ALICE (earning above the FPL but below the Household Survival Budget for their county).