California and Louisiana Share Highest Poverty Rate in 2024

California finds itself tied with Louisiana for the highest poverty rate in the nation at 17.7%, according to a recent analysis by the California Budget and Policy Center. This report, based on updated census data, suggests that the situation has seen “specific improvements from 2023.” Despite significant investments into public welfare programs by Governor Newsom, many residents, it seems, still face dire poverty levels. Homelessness continues to be a growing concern amid these struggles.

The analysis indicates that approximately 7 million Californians lacked adequate resources to meet their essential needs last year. This number is roughly equivalent to the populations of major cities like Los Angeles and San Francisco combined. Alarmingly, about two million individuals are categorized as being in deep poverty, defined as households living on less than 50% of the supplemental poverty threshold.

The California Center for Budget and Policy suggests that these findings reflect a broader picture of economic well-being compared to formal poverty measures. While the overall poverty rates didn’t shift significantly from 2023 to 2024, they’ve sharply risen from an all-time low of 11% in 2021. California and Louisiana’s rates have topped supplemental poverty measures since 2022, even as national levels saw a minor decrease of 0.4% during the same period.

Children and minority groups appear to be the most affected, with the child poverty rate in California reportedly rising by 18.6% in 2024. The high cost of housing, which tends to dominate family budgets, plays a significant role in pushing vulnerable families further into financial hardship.

Interestingly, Governor Newsom’s office has yet to comment on the analysis. Some experts in energy policy have expressed skepticism towards reforms aiming to address the state’s housing crisis, suggesting that they fall short of the substantial changes needed. While Newsom has allocated millions to tackle homelessness and strengthen welfare programs, critics have noted potential cuts to state resources that could undermine these efforts.

For example, the recent “Care Court” initiative, designed to assist Californians battling untreated mental health issues, has reportedly helped fewer than 550 individuals despite considerable investment and promises of significant outreach. Meanwhile, recent polling data shows Newsom as a potential frontrunner for the 2028 Democratic presidential nomination.