Unlike the official poverty measure, which is based solely on cash resources, the supplemental poverty measure uses cash resources and also includes noncash benefits and subtracts necessary expenses (such as taxes and medical expenses).
Deeper Dive
The SPM adds more complexity by incorporating additional items such as tax payments and work expenses in its family resource estimates. Thresholds used in the SPM are derived from Consumer Expenditure Survey data on basic necessities (food, shelter, clothing and utilities) and take into account geographic differences in the cost of housing, as the Census Bureau explains.
Supplemental poverty thresholds are not used to assess eligibility for government programs. Instead, SPM serves as an additional indicator of economic well-being and provides a deeper understanding of economic conditions and policy effects. Research files and data are available for public use. Kaiser Family Foundation has a state-by-state analysis.