Texas Federal Poverty Level: Income Limits for State Benefits

The federal poverty level for Texas is a set of income thresholds issued annually by the U.S. Department of Health and Human Services (HHS). These figures are the primary measure used to determine eligibility for a wide range of assistance programs designed to support low-income individuals and families across the state.

These figures, also known as the Federal Poverty Guidelines (FPG), serve as the financial gateway to critical services. These include health care coverage through Medicaid, food assistance via the Supplemental Nutrition Assistance Program (SNAP), and utility bill support. For a single individual, the baseline poverty guideline is a monthly income of $1,304.17, or $15,650 annually. For a household of four, this figure is $2,679.17 per month, or $32,150 per year. Understanding these income limits is the first and most important step for Texans seeking to access benefits.

What the Federal Poverty Level (FPL) Means for Texans

The Federal Poverty Level is a foundational economic measure that directly impacts the lives of millions of Texans. It is not merely a statistical number but a functional tool used by state and federal agencies to administer aid. It is essential to distinguish the FPL, or poverty guidelines, from a related term: poverty thresholds.

Poverty Guidelines vs. Poverty Thresholds

Poverty thresholds are the original version of the federal poverty measure, updated annually by the U.S. Census Bureau. Their primary purpose is statistical; they are used to track the number of Americans living in poverty and to generate demographic data on poverty rates by age, race, and region.

The poverty guidelines, in contrast, are a simplified version of the thresholds issued by the Department of Health and Human Services. Their purpose is purely administrative. State agencies like the Texas Health and Human Services Commission (HHSC) use these guidelines to set the income eligibility limits for their programs. To account for inflation and changes in the cost of living, these guidelines are revised each year based on the Consumer Price Index.

Limitations of a National Standard

The FPL is a national standard applied uniformly across 48 contiguous states, including Texas. It does not account for the significant variations in the cost of living between different regions within the state. For example, there is a major cost difference between an urban center like Austin and a more affordable rural community. This limitation is a key reason why some programs, particularly those related to housing, use a different, more localized income measure to determine eligibility.

Federal Poverty Level Income Limits: A Detailed Breakdown

Many Texas assistance programs do not use the 100% FPL mark as their cutoff. Instead, eligibility is often set at a percentage multiple of the poverty guidelines, such as 130%, 150%, or 200%. This tiered system means a family might qualify for one type of assistance but not another, depending on their specific income level.

The close proximity of some of these tiers—for example, 130%, 133%, and 138%—is a result of different federal laws authorizing each program. This can create a "benefits cliff," where a small raise at work could push a family's income just over the limit for one program, causing them to lose a significant benefit. Below are the specific income limits for the most common FPL percentages used for Texas benefit programs.

100% of the Federal Poverty Level

This is the baseline measurement of poverty. It is used as the net income limit for SNAP benefits and the eligibility level for certain Medicaid programs.

• Household of 1: $1,304 per month / $15,650 per year
• Household of 2: $1,763 per month / $21,150 per year
• Household of 3: $2,221 per month / $26,650 per year
• Household of 4: $2,679 per month / $32,150 per year
• For each additional person, add: $458 per month / $5,500 per year

125% of the Federal Poverty Level

This level is often used to determine eligibility for free legal aid services and other community-based programs.

• Household of 1: $1,630 per month / $19,563 per year
• Household of 2: $2,203 per month / $26,438 per year
• Household of 3: $2,776 per month / $33,313 per year
• Household of 4: $3,349 per month / $40,188 per year
• For each additional person, add: $573 per month / $6,875 per year

130% of the Federal Poverty Level

This is the gross monthly income limit for most households applying for SNAP food benefits.

• Household of 1: $1,695 per month / $20,345 per year
• Household of 2: $2,291 per month / $27,495 per year
• Household of 3: $2,887 per month / $34,645 per year
• Household of 4: $3,483 per month / $41,795 per year
• For each additional person, add: $596 per month / $7,150 per year

133% of the Federal Poverty Level

This specific percentage is used to determine eligibility for certain categories of Children's Medicaid in Texas.

• Household of 1: $1,735 per month / $20,815 per year
• Household of 2: $2,344 per month / $28,130 per year
• Household of 3: $2,954 per month / $35,445 per year
• Household of 4: $3,564 per month / $42,760 per year
• For each additional person, add: $610 per month / $7,315 per year

138% of the Federal Poverty Level

Under the Affordable Care Act, 138% of FPL is the threshold for Medicaid eligibility in states that have expanded their programs. While Texas has not expanded Medicaid for all adults, this level is still relevant for certain programs and for understanding the national health care landscape.

• Household of 1: $1,800 per month / $21,597 per year
• Household of 2: $2,432 per month / $29,187 per year
• Household of 3: $3,065 per month / $36,777 per year
• Household of 4: $3,697 per month / $44,367 per year
• For each additional person, add: $633 per month / $7,590 per year

150% of the Federal Poverty Level

This income level is the primary threshold for the Low Income Home Energy Assistance Program (LIHEAP), also known as the Comprehensive Energy Assistance Program (CEAP) in Texas. It is also used for the Lifeline telephone and broadband discount program and the federal TRIO educational programs. 

• Household of 1: $1,956 per month / $23,475 per year
• Household of 2: $2,644 per month / $31,725 per year
• Household of 3: $3,331 per month / $39,975 per year
• Household of 4: $4,019 per month / $48,225 per year
• For each additional person, add: $688 per month / $8,250 per year

185% of the Federal Poverty Level

This percentage is a key threshold for nutrition programs, including eligibility for reduced-price school meals. It is also the income limit for certain Medicaid programs in Texas, such as those for pregnant women and infants.

• Household of 1: $2,413 per month / $28,953 per year
• Household of 2: $3,261 per month / $39,128 per year
• Household of 3: $4,109 per month / $49,303 per year
• Household of 4: $4,957 per month / $59,478 per year
• For each additional person, add: $848 per month / $10,175 per year

200% of the Federal Poverty Level

Twice the baseline poverty level, this income limit is used for various programs, including some Medicaid categories for disabled individuals and eligibility for Community Services Block Grant (CSBG) programs in some Texas communities.

• Household of 1: $2,608 per month / $31,300 per year
• Household of 2: $3,525 per month / $42,300 per year
• Household of 3: $4,442 per month / $53,300 per year
• Household of 4: $5,358 per month / $64,300 per year
• For each additional person, add: $917 per month / $11,000 per year

250% of the Federal Poverty Level

This higher threshold is used for specific programs like the Medicaid Buy-In program, which allows working individuals with disabilities to access Medicaid coverage.

• Household of 1: $3,260 per month / $39,125 per year
• Household of 2: $4,406 per month / $52,875 per year
• Household of 3: $5,552 per month / $66,625 per year
• Household of 4: $6,698 per month / $80,375 per year
• For each additional person, add: $1,146 per month / $13,750 per year

Health Care Assistance in Texas: Medicaid and CHIP Eligibility

In Texas, the Federal Poverty Level is the central factor in determining who can receive free or low-cost health care through Medicaid and the Children's Health Insurance Program (CHIP). Eligibility varies significantly depending on the applicant's age, pregnancy status, disability status, and household role. The income used for this determination is typically the Modified Adjusted Gross Income (MAGI).

The Texas "Coverage Gap"

A critical piece of context for Texas is that the state has not expanded Medicaid eligibility to all low-income adults under the Affordable Care Act (ACA). This policy decision creates what is known as the "coverage gap." The ACA assumed adults with incomes below 100% FPL would be covered by expanded Medicaid, while those between 100% and 400% FPL would receive subsidies on the Health Insurance Marketplace.

In Texas, however, Medicaid eligibility for parents is set at a much lower threshold. This means an adult can earn too much to qualify for Texas Medicaid but too little to qualify for federal marketplace subsidies, leaving them with no affordable coverage options.

Key Eligibility Levels for Medicaid and CHIP

• Pregnant Women and Infants (Under Age 1): Eligibility for Medicaid extends up to 215% of the FPL.
• Children Ages 1-5: Children in this age group are eligible for Medicaid with a household income up to 157% of the FPL.
• Children Ages 6-18: Older children and teenagers can receive Medicaid with a household income up to 133% of the FPL.
• CHIP: For families who earn too much for Children's Medicaid, the Children's Health Insurance Program (CHIP) provides coverage for children in families with incomes up to 201% of the FPL.
• Medicaid for the Elderly and People with Disabilities (MEPD): This category includes several programs with varying income limits, from 100% FPL for the Qualified Medicare Beneficiaries (QMB) program to 200% FPL for the Qualified Disabled Working Individuals (QDWI) program.
• Medicaid Buy-In: This program allows adults (up to 250% FPL) and children (up to 150% FPL) with disabilities to "buy in" to Medicaid coverage.

Food Assistance in Texas: SNAP Income and Eligibility Rules

The Supplemental Nutrition Assistance Program (SNAP) is the nation's primary defense against hunger, providing monthly benefits to help low-income Texans purchase food. Eligibility for SNAP is determined by a two-part income test based on the FPL, and a household must typically pass both tests to qualify.

The Two-Part Income Test

1. A household's gross monthly income (total income before any taxes or deductions) must be at or below 130% of the FPL.
2. After subtracting certain allowable deductions, the household's net monthly income must be at or below 100% of the FPL.

Allowable deductions can include expenses for childcare, medical costs for elderly or disabled members, and high shelter costs. This system means a family whose gross income is slightly above the 130% limit might still qualify if they have high expenses that bring their net income below the 100% FPL threshold.

Special Rules and Programs

Special, more generous rules apply to certain households. If a household includes at least one person who is age 60 or older or has a disability, the gross income test is raised to 165% of the FPL.

Texas also offers the Texas Simplified Application Project (TSAP) for households where all members are either age 60 or older or are receiving disability benefits. TSAP offers significant advantages:

• A much shorter application.
• A three-year certification period instead of the standard six months.
• No interview requirement for benefit renewal.

In addition to income, households must also meet an asset test. Generally, a household may have up to $3,000 in countable resources (like cash in a bank account). This limit increases to $4,500 if the household includes an elderly or disabled member.

Energy and Utility Bill Assistance in Texas (LIHEAP/CEAP)

The Low Income Home Energy Assistance Program (LIHEAP) is a federal program that helps low-income households pay their energy bills. In Texas, LIHEAP is administered by the Texas Department of Housing and Community Affairs (TDHCA) and is known as the Comprehensive Energy Assistance Program (CEAP). CEAP can provide direct payments to utility companies, assist in an energy crisis, and provide funds for energy-related home repairs.

A Dual Eligibility Standard

CEAP uses a unique dual standard for income eligibility. A household's income must be at or below the greater of two different measures:

1. 150% of the Federal Poverty Level, OR
2. 60% of the State Median Income (SMI).

This dual standard recognizes that a single national poverty metric may not adequately reflect local energy costs. For most Texas households of one to eight members, 60% of the SMI is a higher income threshold than 150% of the FPL, expanding eligibility to more families. Priority for assistance is typically given to households with the highest energy burdens and those containing vulnerable individuals, such as the elderly, people with disabilities, and young children.

Housing Assistance: Understanding a Different Income Standard

A critical point of confusion for those seeking assistance is that federal housing programs do not use the Federal Poverty Level to determine eligibility. Instead, programs like Public Housing and the Section 8 Housing Choice Voucher program rely on a different measure called Area Median Income (AMI).

Why Housing Programs Use AMI

AMI is calculated annually by the U.S. Department of Housing and Urban Development (HUD) for every metropolitan area and county. Unlike the FPL, which is an absolute measure of poverty, AMI is a relative measure that compares a household's income to the median income of other households in their specific geographic area. This is essential because housing is the largest and most geographically variable expense for most families.

Income Tiers for Housing Assistance

Eligibility for HUD programs is categorized into three main tiers based on a percentage of the local AMI:

• Low-Income: Households with incomes at or below 80% of the AMI.
• Very Low-Income: Households with incomes at or below 50% of the AMI.
• Extremely Low-Income: Households with incomes at or below 30% of the AMI.

For example, in the Houston metropolitan area, the low-income limit (80% AMI) for a four-person household is $80,900, while the very low-income limit (50% AMI) is $50,550. These figures are substantially different from the FPL for a family of four ($32,150), illustrating why the localized AMI standard is necessary for housing programs.

How to Apply for Benefits in Texas

Navigating the application process for these varied programs can seem daunting, but Texas has worked to centralize access for its largest benefit programs.

Applying for SNAP, Medicaid, and TANF

The primary and most efficient way to apply for SNAP food benefits, Medicaid, CHIP, and TANF cash assistance is through the state's official online portal, YourTexasBenefits.com. This website and its mobile app serve as a one-stop shop where you can:

• Apply for new benefits.
• Check the status of a pending application.
• Renew existing benefits.
• Report changes to your household circumstances.
• Upload required documents directly.

Applications can also be submitted by mail, by fax, or in person at a local HHSC benefits office. You can find your nearest office or get help over the phone by calling 2-1-1.

Applying for Energy and Housing Assistance

Assistance for energy and housing is managed through separate, local channels.

• Energy Assistance (CEAP/LIHEAP): To apply for help with utility bills, you must contact the local community action agency that administers the CEAP program in your county. The Texas Department of Housing and Community Affairs provides resources to help Texans find their local provider.
• Housing Assistance (Section 8/Public Housing): To apply for housing assistance, you must contact your local Public Housing Authority (PHA). Each PHA maintains its own application process and waiting list. You can find your local PHA through the HUD website.

For Texans facing financial hardship, understanding the Federal Poverty Level and its application to these vital programs is the first step toward securing support. While the system is complex, resources are available to help individuals and families achieve greater economic stability.

Frequently Asked Questions