This report attempts to identify and provide information about federal programs that are targeted in some way toward low-income people and communities. Programs included in this report are distinct from social insurance programs such as Social Security, Medicare, or Unemployment Insurance. Important Caveats

While they share the common feature of an explicit low-income focus, programs discussed in this report are highly diverse in their purpose, design, and target population. No single label accurately describes all programs in the report. Similarly, no single trait characterizes the people served by these programs. Families with children where an adult is working account for the next largest share of spending, followed by the elderly. Still focusing on the 10 largest programs, the next section presents an analysis of spending by the population groups served, including the elderly and disabled, families with children, and childless adults and couples. Trends in Low-Income Spending, FY2008-FY2013

Federal spending for low-income programs totaled $561 billion in FY2008 and jumped to $708 billion the next year, as the Great Recession of 2007-2009 took hold. Federal spending for low-income programs peaked in FY2011 at $764 billion, dropped in FY2012, and edged up again in FY2013. By that year, spending for low-income benefits and services had receded below FY2010 levels, but remained a third higher than comparable spending in FY2008. Health Care

Just as health care dominates total federal spending on low-income programs, Medicaid dominates the health category. Medicaid accounted for 83% of health care spending in FY2013 and is the single largest program included in this report (accounting for 39% of total FY2013 low-income spending). Trends in Low-Income Spending by Category

Health care is by far the largest category of low-income spending, accounting for nearly half of all expenditures in each of the six years from FY2008 through FY2013. Spending for cash aid and food assistance generally rose over each of the six years (with a dip in the cash aid category in FY2012); peak spending for both of these categories occurred in FY2013. (The food category showed the largest growth over the period, with an 82% increase in spending between FY2008 and FY2013.) Smaller categories—housing and development, social services, employment and training, and energy assistance—all saw their peak spending in FY2009. The amount of federal spending for discretionary programs, on the other hand, is determined by Congress through the annual appropriations process. The four largest programs accounted for nearly two-thirds (65%) of total low-income spending in FY2013, and the top 10 comprised almost 82%. Because the report includes only programs with direct spending, it does not include tax provisions, with the exception of direct spending for the refundable portion of the Earned Income Tax Credit (EITC) and the refundable ACTC. For each program, the following information is provided: Catalog of Federal Domestic Assistance (CFDA) number(s); statutory and regulatory citations; the name of the federal administering agency and (where relevant) the specific office within that agency; the program's purpose; the type of benefit or service provided; criteria used to determine individual eligibility; the form and recipient of federal assistance (note that "state" includes the District of Columbia); the allocation formula used if relevant; any matching or related nonfederal spending requirements; the amount of new obligations in FY2013; the budgetary classification of the program's spending; some limited detail on program participation; and citations to relevant CRS reports. Additional Child Tax Credit (no CFDA #)
Authority: Statute: 26 U.S.C. Benefit/service: Refundable tax credit. Adults who receive SNAP, FDPIR, Supplemental Security Income (SSI) or Medicaid benefits are automatically eligible for free meals/snacks.
The Congressional Research Service (CRS) regularly receives requests about the number, size, and programmatic details of federal benefits and services targeted toward low-income populations, and the characteristics of people who participate. This report attempts to identify and provide information about such programs, including their federal spending during FY2008-FY2013. The report does not discuss social insurance programs such as Social Security, Medicare, or Unemployment Insurance, but includes only programs with an explicit focus on low-income people or communities. Tax provisions, other than the refundable portion of two tax credits, are excluded. Key findings include the following:
No single label best describes all programs with a low-income focus, and no single trait characterizes those who benefit. Programs are highly diverse in their purpose, design, and target population. Readers should use caution in making generalizations about the programs described in this report. Total federal spending on low-income programs rose sharply between FY2008 and FY2009 as the Great Recession took hold. Spending ultimately peaked in FY2011, dropped in FY2012, and edged up again in FY2013. Total low-income spending in FY2013 totaled $744 billion, significantly higher than the FY2008 level of $561 billion but below the FY2010 level of $750 billion. Peak spending over the six years was $764 billion in FY2011. Health care is the single largest category of low-income spending, accounting for nearly half of the total, and drives overall trends. The single largest program within the health category is Medicaid. Cash aid and food assistance are the next largest categories, with food assistance seeing the largest growth over the six-year period. Other categories (in descending size) are education, housing and development, social services, employment and training, and energy assistance. Most low-income spending (82% in FY2013) is classified in budgetary terms as "mandatory" (or "direct"), which means the amount spent is a function of eligibility and payment rules established by Congress in authorizing laws. Congress determines the amount spent for the remaining "discretionary" programs through the annual appropriations process. Four programs accounted for 65% of low-income spending in FY2013, and 10 programs made up 82%. Medicaid alone contributed 39% of the total. In addition to Medicaid, the top four include the Supplemental Nutrition Assistance Program (SNAP), Supplemental Security Income (SSI), and the refundable portion of the Earned Income Tax Credit (EITC). The disabled receive the single largest share of federal low-income spending, based on an analysis of spending for the top 10 programs in FY2011. The disabled received almost a third of such spending, primarily for health care and secondarily for cash aid. Working families with children received the next largest share of spending (including from the EITC and Additional Child Tax Credit), followed by the elderly. The bulk of spending for low-income elderly was in the health category. Less than 12% of total low-income spending in FY2011 went to families with nonelderly nondisabled adults who were not working.