How does the Social Security Administration create the poverty threshold?

The Social Security Administration (SSA) uses the poverty threshold established by the U.S. Census Bureau, which is based on the cost of a minimum food diet in 1963, adjusted for inflation and updated annually. The threshold varies by family size and composition and is calculated using a formula that considers the poverty rate and economic conditions. This measure helps determine eligibility for various federal and state assistance programs, ensuring support reaches those in need.