In FY2009, federal spending on programs for people with low income was almost $708 billion, and totaled nearly $578 billion the previous year. Most of the growth between the two years was related to the recession and associated policy responses, with almost two-thirds (64%) of the increase coming from the American Recovery and Reinvestment Act of 2009 (ARRA, P.L. 111-5 ). In both years, four programs accounted for almost 60% of total spending, and 10 programs accounted for more than 75%. The distinguishing feature of federal programs examined here is their explicit focus on low-income populations, as distinct from social insurance programs such as Social Security, Medicare, or Unemployment Insurance. Social insurance programs aim to protect American workers universally against lost wages and work-related benefits due to retirement, disability, or temporary periods of unemployment. The next section looks specifically at the 10 largest programs, which together account for three-fourths of all spending in the report, followed by an overview of all programs, organized by major category in order of FY2009 spending: health care, cash aid, food assistance, housing and development, education, social services, energy assistance, and employment and training. Overview of Federal Spending on Benefits and Services for People with Low Income

Federal spending on benefits and services for low-income people totaled $708 billion in FY2009 and $578 billion in FY2008. These programs generally seek to mitigate the effects of low income by helping people meet basic needs such as health care, food, or shelter, or to address the root causes of economic disadvantage through services, education, or job training. Key target populations for many of these programs, including some of the largest, include low-income elderly and disabled individuals, and dependent children and their families. Almost two-thirds (64%) of the additional spending was provided under ARRA, the economic stimulus enacted in February 2009. As Table 2 shows, Medicaid is the single largest program and alone accounts for nearly 40% of low-income spending. Next in size are the Supplemental Nutrition Assistance Program (SNAP, formerly food stamps), Supplemental Security Income (SSI), and the refundable portion of the Earned Income Tax Credit (EITC). Instead, these large programs either allocate funds to states or another unit of government by formula, as just described, or give benefits to eligible individuals directly (or through a nongovernment intermediary). Programs use different concepts to define who is eligible. Other target groups for selected programs include veterans, students, people who are homeless, Indians, and refugees, among others. With the exception of postsecondary student aid, education programs typically do not require individuals to be determined income-eligible for assistance; rather, they target assistance toward areas or entities where low-income students are likely to be served (such targeting mechanisms are discussed later in the report). Many programs in this report are formula grants (as compared with competitive or discretionary awards, or direct benefits to individuals), and use population-based allocation factors as a way to direct resources toward areas with large concentrations of the program's target group. This report provides a snapshot of policies and spending in FY2008 and FY2009 on specified categories of benefits and services for low-income people. Many of these programs require states, or sometimes other entities within states, to spend a certain amount of nonfederal funds to access their full federal grant. Individual eligibility criteria: States must give priority to low-income women. However, states may supplement the federal benefit with their own funds. S+C: Competitive grants to states and local governments and public housing authorities. Federal Poverty Guidelines and Related Poverty Measures
Federal Poverty Guidelines, Research and Measurement —include links to current and prior poverty guidelines and frequently asked questions about the guidelines, their use by various federal programs to determine eligibility, and the federal poverty thresholds:
http://aspe.hhs.gov/ poverty/ index.shtml
U.S. Census Bureau: Poverty —includes links to information about poverty data reported by the Census Bureau from several major household surveys and programs, including the Annual Social and Economic Supplement to the Current Population Survey, the American Community Survey, the Survey of Income and Program Participation, and the Small Area Income and Poverty Estimates:
http://www.census.gov/ hhes/ www/ poverty/ poverty.html 
Department of Veterans Affairs Income Thresholds
VA Health Care—National Income Thresholds for FY2011 and FY2010 : 
http://www4.va.gov/ healtheligibility/ Library/ pubs/ VAIncomeThresholds/ VAIncomeThresholds.pdf
Questions and Answers on Veterans Pension Program :
http://www.vba.va.gov/ bln/ 21/ pension/ vetpen.htm#1
Pension Rate Table, effective December 2009 —provides annual income limits for maximum annual pension rates, and includes links to prior year limits:
http://www.vba.va.gov/ bln/ 21/ Rates/ pen01.htm 
Supplemental Security Income
Monthly Federal SSI Payment (Maximum) and Monthly Income Limits, 2010 :
http://www.ssa.gov/ pubs/ 10003.html 
Understanding Supplemental Security Income—SSI Eligibility Requirements, 2010 Edition :
http://www.ssa.gov/ ssi/ text-eligibility-ussi.htm
Earned Income Tax Credit
Income Limits and Maximum Credit Amounts, 2010 , and links to prior year limits:
http://www.irs.gov/ individuals/ article/ 0,,id= 150513,00.html
Median Income
State median income data published by the Census Bureau :
http://www.census.gov/ hhes/ www/ income/ statemedfaminc.html
FY2010 HUD Income Limits Briefing Material :
http://www.huduser.org/ portal/ datasets/ il/ il10/ IncomeLimitsBriefingMaterial_FY10.pdf
FY2010 Income Limits for the Public Housing and Section 8 Programs :
http://www.huduser.org/ portal/ datasets/ il/ il10/ HUD-sec8.pdf
Frequently Asked Questions, FY2010 Income Limits :
http://www.huduser.org/ portal/ datasets/ il/ il10/ faq_10.html
"Need Analysis" System
The EFC Formula, 2010-2011 (June 2010 update) —explains the formula used to calculate a student's "expected family contribution" and the amount of aid the student would be eligible to receive:
http://www.ifap.ed.gov/ efcformulaguide/ attachments/ 062810EFCFormulaGuideUpdate1011.pdf
Lower Living Standard Income Levels
Federal Register notice of determination of Lower Living Standard Income Levels for 2010 , and links to LLSILs for prior years:
http://www.doleta.gov/ llsil/ 2010/
The federal government spent almost $708 billion in FY2009 on programs for low-income people, and nearly $578 billion the previous year. The increased spending between the two years was largely due to the recession, with almost two-thirds coming from the American Recovery and Reinvestment Act (ARRA, P.L. 111-5), the economic stimulus enacted in February 2009.
Low-income programs discussed in this report are distinct from social insurance programs, such as Social Security or Medicare, which aim to protect American workers universally against lost wages or benefits when they retire, become disabled, or lose a job. In contrast, programs addressed here focus explicitly on low-income populations. They provide assistance in obtaining basic needs, such as health care, food, or housing, and seek to address the causes of low income through education, training, or other services. While these programs are very diverse, the analysis in this report yields certain general findings:
• Health care dominates all other categories of benefits and services, accounting for nearly half of federal spending for low-income people. Cash aid is second but trails far behind, comprising 18% of spending in FY2009. Other categories, in decreasing size, are food assistance, housing and development, education, social services, energy assistance, and employment and training.
• Four programs account for 60% of federal spending for low-income people and 10 programs make up more than three-fourths. Medicaid alone accounted for nearly 40% of FY2009 low-income spending; next were the Supplemental Nutrition Assistance Program (SNAP, formerly food stamps), Supplemental Security Income, and the refundable portion of the Earned Income Tax Credit.
• Elderly and disabled individuals, and families with children are key target populations for much of the spending for low-income people. Federal policy toward families with children generally encourages work and includes incentives to "make work pay." Other populations served by selected programs include veterans, students, homeless people, Indians, and refugees.
• Within broad target populations, programs use different concepts to determine who is eligible. Most spending is on behalf of people determined individually eligible by virtue of their low income or eligibility for another income-tested program. "Low income" is defined in a multitude of ways, using different percentages of the federal poverty guidelines, specific dollar amounts, percentages of local area median income (primarily for housing programs), or other measures.
• Many programs distribute funding to states or other entities to provide benefits and services to low-income people, using population-based allocation factors, cost-sharing formulas, or other mechanisms to target resources toward areas or entities with the greatest need. Some of these programs (especially in elementary and secondary education) have no further requirements for individuals to be determined income-eligible.
• Programs for low-income people are most likely to use formula grants to distribute funds to states or another unit of government. Under many of these programs, notably including Medicaid, states must spend a specified amount of their own funds to receive federal dollars. State and local governments administer most of these federal programs; however, many of the largest programs provide federal benefits directly to individuals or via a nongovernmental intermediary.