More Trump Punishment of the Poors: HHS Eliminates Office That Sets Poverty Levels Tied to Benefits for 80 Million People

Yves here. We’re again and again seeing the Trump Administration use the same radical yet so far effective playbook: deny Congressionally mandated payments under all sorts of programs by smashing the bureaucratic machinery necessary to execute. Poor people are a top target. Here, Trump has eliminated the team expert in the highly technical matter of determining what poverty thresholds are. No reference point, no action.

I don’t mean to sound like I am channeling Thomas Friedman, but a taxi driver practicing his English managed to extract from me that I was American. He immediately said, “Trump America first” and gave a mini-litany on who wuffering, such as “LGTBQs”. He then explained why everyone but Trump and Elon Musk was being hurt. I gave him the update on Musk falling out with Trump.

By Arthur Allen. Originally published at KFF Health News

President Donald Trump’s firings at the Department of Health and Human Services included the entire office that sets federal poverty guidelines, which determine whether tens of millions of Americans are eligible for health programs such as Medicaid, food assistance, child care, and other services, former staff said.

The small team, with technical data expertise, worked out of HHS’ Office of the Assistant Secretary for Planning and Evaluation, or ASPE. Their dismissal mirrored others across HHS, which came without warning and left officials puzzled as to why they were “RIF’ed” — as in “reduction in force,” the bureaucratic language used to describe the firings.

“I suspect they RIF’ed offices that had the word ‘data’ or ‘statistics’ in them,” said one of the laid-off employees, a social scientist whom KFF Health News agreed not to name because the person feared further recrimination. “It was random, as far as we can tell.”

Among those fired was Kendall Swenson, who had led development of the poverty guidelines for many years and was considered the repository of knowledge on the issue, according to the social scientist and two academics who have worked with the HHS team.

The sacking of the office could lead to cuts in assistance to low-income families next year unless the Trump administration restores the positions or moves its duties elsewhere, said Robin Ghertner, the fired director of the Division of Data and Technical Analysis, which had overseen the guidelines.

The poverty guidelines are “needed by many people and programs,” said Timothy Smeeding, a professor emeritus of economics at the La Follette School of Public Affairs at the University of Wisconsin. “If you’re thinking of someone you fired who should be rehired, Swenson would be a no-brainer,” he added.

Under a 1981 appropriations bill, HHS is required annually to take Census Bureau poverty-line figures, adjust them for inflation, and create guidelines that agencies and states use to determine who is eligible for various types of help.

There’s a special sauce for creating the guidelines that includes adjustments and calculations, Ghertner said. Swenson and three other staff members would independently prepare the numbers and quality-check them together before they were issued each January.

Everyone in Ghertner’s office was told last week, without warning, that they were being put on administrative leave until June 1, when their employment would officially end, he said.

“There’s literally no one in the government who knows how to calculate the guidelines,” he said. “And because we’re all locked out of our computers, we can’t teach anyone how to calculate them.”

ASPE had about 140 staff members and now has about 40, according to a former staffer. The HHS shake-up merged the office with the Agency for Healthcare Research and Quality, or AHRQ, whose staff has shrunk from 275 to about 80, according to a former AHRQ official who spoke on the condition of anonymity.

HHS has said it laid off about 10,000 employees and that, combined with other moves, including a program to encourage early retirements, its workforce has been reduced by about 20,000. But the agency has not detailed where it made the cuts or identified specific employees it fired.

“These workers were told they couldn’t come into their offices so there’s no transfer of knowledge,” said Wendell Primus, who worked at ASPE during the Bill Clinton administration. “They had no time to train anyone, transfer data, etc.”

HHS did not respond to a request for comment. Secretary Robert F. Kennedy Jr. has so far declined to testify about the staff reductions before congressional committees that oversee much of his agency. On April 9, a delegation of 10 Democratic members of Congress waited fruitlessly for a meeting in the agency’s lobby.

The group was led by House Energy and Commerce health subcommittee ranking member Diana DeGette (D-Colo.), who told reporters afterward that Kennedy must appear before the committee “and tell us what his plan is for keeping America healthy and for stopping these devastating cuts.”

Matt VanHyfte, a spokesperson for the Republican committee leadership, said HHS officials would meet with bipartisan committee staff on April 11 to discuss the firings and other policy issues.

ASPE serves as a think tank for the HHS secretary, said Primus, who later was Rep. Nancy Pelosi’s senior health policy adviser for 18 years. In addition to the poverty guidelines, the office maps out how much Medicaid money goes to each state and reviews all regulations developed by HHS agencies.

“These HHS staffing cuts — 20,000 — obviously they are completely nuts,” Primus said. “These were not decisions made by Kennedy or staff at HHS. They are being made at the White House. There’s no rhyme or reasons to what they’re doing.”

HHS leaders may be unaware of their legal duty to issue the poverty guidelines, Ghertner said. If each state and federal government agency instead sets guidelines on its own, it could create inequities and lead to lawsuits, he said.

And sticking with the 2025 standard next year could put benefits for hundreds of thousands of Americans at risk, Ghertner said. The current poverty level is $15,650 for a single person and $32,150 for a family of four.

“If you make $30,000 and have three kids, say, and next year you make $31,000 but prices have gone up 7%, suddenly your $31,000 doesn’t buy you the same,” he said, “but if the guidelines haven’t increased, you might be no longer eligible for Medicaid.”

The 2025 poverty level for a family of five is $37,650.

As of October, about 79 million people were enrolled in Medicaid or the related Children’s Health Insurance Program, both of which are means-tested and thus depend on the poverty guidelines to determine eligibility.

Eligibility for premium subsidies for insurance plans sold in Affordable Care Act marketplaces is also tied to the official poverty level.

One in eight Americans rely on the Supplemental Nutrition Assistance Program, or food stamps, and 40% of newborns and their mothers receive food through the Women, Infants, and Children program, both of which also use the federal poverty level to determine eligibility.

Former employees in the office said they were not disloyal to the president. They knew their jobs required them to follow the administration’s objectives. “We were trying to support the MAHA agenda,” the social scientist said, referring to Kennedy’s “Make America Healthy Again” rubric. “Even if it didn’t align with our personal worldviews, we wanted to be useful.”

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24 comments

  1. ambrit

    Just a fairly silly Cynical Ideation here. What if this was a stealth attack on both American Labour and “guest workers?”
    Step 1: Start deporting masses of “illegals.” (They being those who fill the lowest rungs of the employment ladder in America. This because “native” Americans know that those jobs pay a sub-subsistence wage.)
    Step 2: Begin forcing working age Americans off of Social Safety Net programs. (Here by eliminating key nodes of functionality of the system itself. The above is a case in point.)
    Step 3: Begin an “Information Awareness Program” that disseminates the meme that Americans who will not take any job, no matter how dangerous, degrading, or poorly paid are “Dead Beats,” “Useless Eaters,” and or “Deplorables deserving of death.”
    Soon, with these tools available, America can fulfil the long-term goal of the revanchist capitalist class of returning America to the halcyon days of the Robber Barons.

    Reply
    1. judy2shoes

      >>>>the meme that Americans who will not take any job, no matter how dangerous, degrading, or poorly paid are “Dead Beats,” “Useless Eaters,” and or “Deplorables deserving of death.”

      Thank you, ambrit. As you already know, this meme has been used over and over again throughout u.s. history to justify not only cuts to the social safety net, but also the importing of labor to do the jobs Americans don’t want. Think Reagan’s cadillac-driving welfare queens, which is a repeat of what we who grew up in the south heard about Blacks. One relatively recent story, sometime in the early 2010s, comes to mind. In it, WA state fruit growers were bemoaning that Americans didn’t want to take the physically demanding jobs of being fruit pickers, so they had to import the labor. Even more recently, as in two years ago, a Bulgarian immigrant I know who is a painting contractor was complaining that he couldn’t get enough workers to take his well-paying jobs (his words, not mine).
      WA State has a minimum wage that adjusts every year; it’s $16.66 per hour for 2025, barely enough to pay rent and cover food costs, etc., in Spokane where I’m located. Since Trump is so focused on deporting the very labor which businesses say they need, his policies seem to be taking us to “the long-term goal of the revanchist capitalist class of returning America to the halcyon days of the Robber Barons” you mention.

      Reply
      1. ambrit

        Greetings. Here in the North American Deep south’s “half horse town[s],” the minimum wage is still $7.25 an hour. I still hear of businesses that offer that as the starting wage. During the early days of the Coronavirus Pandemic, the generally out of town managed retail and fast food outlets offered significantly higher wages to attract workers. In a rarely seen deflationary move, those wages actually later dropped. From what I can gather from personal conversations “on the street,” the local minimum wage has settled somewhere around $10 USD the hour.
        I know not whether it is a sign of a stubbornly low wage on offer or a severe lack of competent available workers, but I am still seeing “Workers Wanted” signs in the windows of local retail establishments.
        Stay safe!

        Reply
      1. ambrit

        That is the scary part to anyone who harbours any hopes for America being a “civilized” nation.
        As Claude Rain’s character in “Casablanca” tells Rick: “I’m only a poor corrupt official.” Rains character in the film is a policeman working for Vichy France. That tells us where America has already sunk too. When I peer over the edge of the chasm we have wandered up to, I cannot see the bottom. That worries me.

        Reply
  2. Alice X

    After the poors (like myself) find that all the Chinese goods that helped them manage have doubled in price…

    The ranks of poors will be going up, but the technical data will be MIA.

    Reply
  3. timbers

    How about firing the government staff that sets up, administers, and determines the benefits Congress and the President and Supreme Court receive and are eligible for? No more payroll-health coverage-retirement pension-tax payer provided security-free pharmacy inside Senate chambers. Not even badges to swipe yourself into buildings. They’d all have to live on their insider trading and legalized by Supreme Court bribes. So tragic I might cry if I continue writing. But…It’s only fair

    Reply
    1. Jokerstein

      Warren Buffet (for it is he) said this in 2006:

      “There’s class warfare, all right, but it’s my class, the rich class, that’s making war, and we’re winning.”

      Reply
  4. LawnDart

    Good, honest, freedom-loving red-blooded Americans, do you have guns?

    You can sell them and each may buy a week or two worth of food.

    Where will that leave you and yours?

    What happens when illusions and self-delusions cannot be maintained, and you actually are forced to make choices that will be life-defining and have real consequences?

    We might not be ready to go there, but we are going there, and all of us– rich or poor living in USA– will be there very soon.

    Welcome to the animal kingdom.

    Reply
  5. David in Friday Harbor

    Our Dear Leader has eliminated poverty with the stroke of a pen!

    No calculation — no poverty!

    Reply
  6. Jason Boxman

    This is pretty genius, as it uses liberal Democrat/technocratic complex eligibility requirements, already designed to punish poors, further against the poors and the programs themselves.

    This is Machiavellian level of epic.

    Imagine if Democrats… sigh, never mind.

    Reply
  7. Tom Stone

    This is Trump once again saying the quiet part out loud, “Go Die”.
    Since he is saying this to half or more of the US Population, enthusiastic cooperation may too much to expect.
    Particularly in the “Red” States which will be hit very hard.

    Reply
  8. Es s Ce Tera

    By poors we mean ‘deplorables’. I think it’s important to draw out that the democrats also took a dim view to the rabble, the out group they took such great pains to bracket and to differentiate as other than themselves, to highlight that the poors should remain unheard, unconsidered and most importantly in a so-called democracy, purposefully unrepresented by a government which is allegedly supposed to represent all.

    Also, I wouldn’t be surprised if most people ideologically opposed to capitalism were rarely wealthy. They’re the ones who become teachers, doctors, nurses, caregivers, ecologists, etc., and all of these are under attack.

    A bit of a tangent, Bernie has a Herculean task to turn the Democrats around, but it would probably be a good idea to at least identify those who call any groups deplorable in order to dismiss them, and those who don’t understand government, if not a dictatorship, is supposed to represent all. This would at least start to reverse the above described trends.

    Reply
  9. M Condin

    Hey, at least Trump and his administration aren’t being hypocritical — they were honest before the election about their bad intentions regarding tariffs, punishing perceived political enemies, extending tax cuts for the wealthy at the expense of everyone else, etc.

    I kept reading on this blog, mainly from Lambert, that at least Trump and the modern Republican Party are honest, whereas the Democrat Party was the object of nonstop criticism for its hypocrisy in only pretending to care about anyone besides its big money donors, for being the party of the PMC and for its misguided commitment to identity politics. This blog had worse things to say about Kamala Harris than about Donald Trump prior to the election.

    This idea that hypocrisy is the worst sin reminds me of a Norm MacDonald anecdote. Patton Oswalt opined to Norm that the worst thing about Bill Cosby was Cosby’s hypocrisy, to which Norm responded, “No, it wasn’t. The worst thing about Cosby was the raping.”

    Why pen critiques now that a presidential administration is following through on implementing an agenda that didn’t raise a lot of red flags before the election?

    Reply
    1. Yves Smith Post author

      Revisionist history, big time. I checked with Lambert, who was paying close attention, and he has no recollection of Trump promising tariffs. Nor did he say he’d destroy Social Security, escalate in the Middle East, fail to deliver on his getting a deal in Ukraine or “president of peace” blather, worsen inflation and create shortages (soon to come!), wreck the VA, harm Federal parks by gutting staffing…this list goes on. And he never said he’d grift on an unheard of scale via his memecoins or giving billionaires advance notice of his policy changes (as the size of trades placed before his tariff climbdown shows), deport Americans to gulag hell holes without due process, or act as a dictator, which is his conduct now.

      So yes, Trump is a much much much worse hypocrite. The reason that matter is voters were mislead to a far far greater degree than with “normal” candidates.

      Reply
      1. Bill B

        Agree on everything but tariffs.

        ‘In 2024, the then-candidate promised to levy duties of 10% to 20% on US trading partners and 60% on China. He also said at one point, “I don’t need Congress … I’ll have the right to impose them myself.”‘ https://finance.yahoo.com/news/wall-street-comes-to-a-painful-realization-trump-was-serious-about-steep-tariffs-all-along-080044887.html

        and

        10/20/24: Trump’s trade rhetoric may not be all bluster. He needs mammoth tariffs to pay for everything else he wants. https://finance.yahoo.com/news/trumps-trade-rhetoric-may-not-be-all-bluster-he-needs-mammoth-tariffs-to-pay-for-everything-else-he-wants-184020428.html

        I don’t recall this being made a big deal of by the MSM, though. It seems it was an integral part of his economic plan, if you can call it that.

        Reply
      2. Kouros

        Trump also didn’t say he will not do all those things enumerated. He promised America First and he claimed he’s a genius that can do any deal. Except pay his contractors and lawyer…

        Reply
      3. steppenwolf fetchit

        Weren’t things like wrecking the VA, harming National Parks by gutting staffing, abolishing NOAA to privatise the profitisable pieces of the wreckage, etc. all part of Project 2025? And didn’t some people warn ahead of time that this was a real set of real goals even as other people tried to “revisionise” Project 2025 out of meaningful existence, denialize it as a “bunch of irritations” , etc.?

        Reply
  10. Tom Stone

    Trump explicitly said that Social Security and Medicare would not be touched.
    He also promised to end Government Censorship and end the War in Ukraine.
    He did not mention the VA because not even the most insane Democrat would overtly gut the VA after decades of pious “Support the Troops” language..
    Did you miss the “Truth Social” Post when he declared that he was now the King?
    He wasn’t joking.
    And he is now overtly defying the Courts, which he may well get away with due to a corrupt Supreme Court.
    Harlan Crow bought “Justice” Thomas with a used book and a Winnebago FFS.

    Reply
  11. Boomheist

    So here in Washington state the Medicaid income limit per month is just over $ 1,000 for a single person; somewhere around 1,800 for a couple. I advise people on Medicare choices, Medicaid, as a volunteer, so I don’t have a dog in the hunt regarding insurance policies or choices. I can’t tell you how many times I talk with single elderly women – divorced, widowed, never married – who are making 1,800 a month or slightly more or less. These people cannot qualify for Medicaid because they make “too much” money. $ 1,800 a month comes to $ 21,600 a year, if my mental math is correct, and this is well over the US Gov’t definition of “poverty.” So these people cannot get Medicaid benefits, which is to say, medical coverage for doctor visits and bad things happening. They have to pay 185 a month for Medicare Part B premium, which means, from their $ 1,800, they immediately lose $ 185, leaving them $ 1,615. And from this they are expected – and they somehow do, God knows how – pay rent at $ 1,000 a month for a shack, if they can find one, rents are more in the $ 1,200 to $ 1,600 range; buy their food; own and operate a car; pay for utilities; clothing….I don;t know how they do it. Yet they are always matter of fact, dont whine or complain, have great dignity, don;t feel sorry for themselves, they just carry on as best they can. But believe me when I say the US government definition of poverty is actually about one half what it should be, if poverty is defined as the ability to get basic life needs barely met. It’s more like, for a couple, if they make less than $ 45,000 they are totally in the precariat. If there are kids. say two little kids, they need to be making at least $ 60,000 to have needs met. At least. For two parents working, full time, at $ 15 an hour, they can make the 60k. But after deducting taxes and Social Security they end up with $ 45,000, call it $ 4,000 a month to be generous, from which they need to pay mortgage rent, at least $ 1,500 a month, and probably much more. Now theyb have $ 2,500 a month. Let’s say they can feed themselves for $ 300 a week (which I doubt four people can do and get an adequate diet), that is, sufficient food to live on, $ 1,200 a month. Now they have $ 1,300 left for everything else. Utilities, at least $ 250 a month for heat water cellphone charges, that;s another $ 1,000. Now they have $ 300 left. Let’s say they have an older car, well used, here in Washington the car annual tabs are up there, will be at least $ 200. They have a hundred dollars left. From this hundred dollars they have to pay for car insurance, gas, repairs, clothing, anything for the kids beyond public school they must pay for, like lessons, tutoring, sports; they have to of course save for college (?). And don;t forget the child care costs to deal with the kids when the parents are at work, after school care, maybe even before school care and delivery, those costs will range from $ 500 a month to as much as $ 1,500 a month.

    So here is a case with a family of four, both parents working at $ 15 an hour which is the Washington minimum wage and TWICE the Federal amount, they are considered middle class and deserving of no public assistance at all, yet they cannot provide for themselves based on what they are making. Isn;t that the definition of poverty – stuck? Precarious? Forced to choose between rent or food or medicine or clothing? Based on some research, it seems that about 40% of all US families make $ 60,000 or less. Forty percent!!!! Now some reading this will cry that there are other sources of help for these people – parents, relatives, whatever – but what this seems to show me, anyway, is that whereas the US government wants to say a family earning over $ 31,000 is not in poverty the truth of the matter is that you can argue that 40% of the people in the US are facing poverty.

    So, yes, the closure of this office means that even for those under the Federal limit hard times are coming. But what is unspoken, the elephant in the room, are all those people up to 40% of the population who are, honestly, facing poverty as well.

    The tragic aspect of all this is that there is a way to refashion the federal budget and system that would actually be fair and would provide the precariat among us a better chance of success, starting with raising the standard deduction from $ 14,600 to $ 75,000. This alone would give these 40% of families some immediate available cash, because they;d have no Federal taxes withheld. Here are the details, this is something I sent to my local Washingtion State Congress people, another way to tackle the budget and one that might actually solve our problems and help us all:

    The Path Forward – A Common Sense Alternative to the Current House Plan
    House Plan: The Republican budget plan now being finalized in Congress expands the deficit by $3 to $5 trillion in 2026, never balances the budget, offers permanent tax relief to the top 1%, savagely and indiscriminately cuts government budget items, raises defense spending, provides nothing for infrastructure renewal, and offers taxpayers in the lower 89% of earners virtually nothing to cope with tariff shocks.

    Unity Plan: Top Tax Rate 40%, up from 37%; Corporate Tax at 25% from 21%; Itemized Deduction Cap at $50K; SS Payroll Tax to $520K from $176K, saving system for 50-75 years; Standard Deduction up from $14.6K to $75K, leaving more money in taxpayer pockets to offset tariff costs and meet expenses; Medicare costs reduced by $50B/year for drug negotiation and $50B/year for fraud recapture; Infrastructure Program funded by $3T in Unity Bonds, like WW2 bonds, ramping up spending over three years to $200B a year for 15 years (not a budget item); Defense, held to inflation for five years, rising to 3% by 2028 due to infrastructure, saves $186.4B over five years vs. 4.1%, then grows 2% above inflation; Other Discretionary held to inflation for five years, rising to 3% by 2028 due to infrastructure, saves $822.8B over five years vs. 5.3%; Other Mandatory (non-Defense/Discretionary budget items) increase spending by $147.8B at 4.4%; Fraud/Scofflaw Enforcement increases spending by $5B/year, totaling $25B over five years; Inflation Adjustment increases spending by $32.5B due to tariffs.

    Comparative Chart: House Plan vs. Unity Plan
    Metric House (37%) Unity (40%)
    Total Revenue (2026) $4.2043T $4.2753T
    Total Spending (2026) $6.6673T $6.51225T
    Deficit (2026) $3T–$5T $2.23695T
    Debt-to-GDP (2030) 148% 114%
    Debt-to-GDP (2040) 197% 85%
    Debt-to-GDP (2050) 220% 71%
    Budget Balanced Never 2050

    Sources: CBO, “The Budget and Economic Outlook: 2024 to 2034,” February 2024, Tables 1-1, 3-1, p. 12, 54; U.S. Treasury, “Historical Debt Outstanding,” for bond and tariff data; SSA, “2024 Trustees Report,” Table IV.B2, p. 106. Notes: House Plan’s $3T–$5T deficit reflects new Republican proposal; Unity’s $3T bonds and higher GDP (2.5% real vs. 1.8%) balance by 2050. Inflation rises to 3% (2028–2042) with infrastructure, reducing Defense/Discretionary savings to $10.5B and $42B post-2030 vs. average growth. Other Mandatory covers non-discretionary items (e.g., SS, Medicaid). Higher tax rates could accelerate Unity’s balance.

    Reply
  12. Boomheist

    Oops, my mental math is not very good – utilities at $ 250/month is not $ 1,000 a year, it is $ 3,000 a year. This only strengthens the argument that a couple with two kids making $ 60,000 a year is way, way under water pretty much anywhere in the United States.

    Reply

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