Connecticut’s latest ALICE (Asset‑Limited, Income‑Constrained, Employed) report shows that 570,000 households could not meet a basic survival budget in 2024. While the number is slightly lower than the 581,000 households recorded in 2023, it remains 14.5% higher than before the COVID‑19 pandemic, according to United Way of Connecticut.
What the ALICE metric measures
The ALICE methodology expands on the traditional Federal Poverty Level by accounting for the full cost of food, housing, utilities, childcare, health care and transportation. For a family of four, the survival budget is set at $116,000 annually.
Geographic spread of hardship
United Way’s director of advocacy, Daniel Fitzmaurice, notes that the surge in hardship is no longer confined to urban centers. Communities such as New Milford, Chester, and Deep River – traditionally viewed as more suburban or rural – are now seeing notable increases in households that cannot afford the basic budget.
Federal policy impact
Lisa Tepper Bates, president and CEO of United Way’s Connecticut chapter, warned that the 2024 figures do not yet reflect the full impact of federal program reductions ordered in 2025 by Congress and President Donald Trump. The administration’s omnibus measure, dubbed the “One Big Beautiful Bill Act,” is projected to cut more than $1.1 trillion from health‑care, nutrition and other assistance programs by 2034 in order to fund an estimated $4.5 trillion in federal tax cuts.
Connecticut has already seen roughly 63,000 people lose Supplemental Nutrition Assistance Program benefits, and state officials have cautioned that about 110,000 low‑income adults could lose Medicaid coverage by January. An additional 143,000 residents lost $295 million in federal tax subsidies for health‑insurance purchases last winter, a loss partially offset by Governor Ned Lamont’s use of $115 million in state surplus funds.
State response and legislative action
United Way and other anti‑poverty groups have urged Governor Lamont and the Democratic‑controlled General Assembly to adopt a new state income‑tax credit for low‑ and middle‑income families with children. While nearly two‑thirds of the Senate and 76 House members co‑sponsored child‑tax‑credit bills last spring, the proposals were omitted from the latest state budget.
Governor Lamont, a fiscal moderate, has expressed a preference for broader tax‑rate reductions that would benefit a larger segment of taxpayers rather than targeted credits.
Comparing metrics
The Federal Poverty Level, still used by many agencies, classifies a family of four as impoverished at an income of $31,200 or less in 2024 – only 27% of the $116,000 ALICE survival budget. United Way estimates that about 11% of Connecticut households fall below the federal line, but the ALICE data suggest that roughly 39% of residents are struggling each month to meet essential costs.
Looking ahead
With inflation persisting and federal assistance programs slated for deep cuts, United Way officials fear that the ALICE numbers could worsen in 2026. Bates emphasized that many families are already unable to afford basic necessities such as gasoline for commuting.
While the Trump administration’s tax‑cut agenda aims to stimulate economic growth, the United Way’s findings highlight the real‑world impact on Connecticut families who rely on safety‑net programs. The debate over how to balance tax relief with protection for the most vulnerable continues to shape state policy discussions.
Original reporting: The Connecticut Mirror — read the source article.
