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GAO-10-240R 1 (2009-11-10)

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  GA 0

       A o bintabity  I integrity I Rehability
United States Government Accountability Office
Washington, DC 20548



        November 10, 2009


        The Honorable Jeff Bingaman
        Chairman
        Lisa Murkowski
        Ranking Member
        Committee on Energy and Natural Resources
        United States Senate

        The Honorable Madeleine Z. Bordallo
        Chairwoman
        Henry E. Brown, Jr.
        Ranking Member
        Subcommittee on Insular Affairs, Oceans and Wildlife
        Committee on Natural Resources
        House of Representatives

        Subject: Poverty Determination in U.S. Insular Areas

        Owing to high levels of poverty, American Samoa, the Commonwealth of the
        Northern Mariana Islands (CNMI), Guam, the Commonwealth of Puerto Rico, and
        the U.S. Virgin Islands (USVI) rely heavily on need-based federal programs to
        provide basic services.! Two federal agencies publish measures used by some
        federal programs to determine poverty status and allocate need-based assistance:
        the Census Bureau (Census) publishes poverty thresholds-dollar-value
        benchmarks for determining poverty status-and the Department of Health and
        Human Services (HHS) provides poverty guidelines, which are derived from the
        poverty thresholds. The approaches used to determine these poverty measures
        affect, respectively, poverty population statistics and income eligibility of
        individuals and families for certain need-based federal assistance. The poverty
        thresholds apply nationwide and in the insular areas, with no geographic variation,
        while separate poverty guidelines for Alaska and Hawaii, but not for the insular
        areas, have been provided since 1970.




        'According to the U.S. Census Bureau (Census), in 1999, the percentage of individuals in poverty
        ranged from 23 in Guam-nearly twice as high as the continental U.S. poverty rate of 12 percent-to
        61 in American Samoa (see encl. II). For more information about reliance on federal programs in
        American Samoa, the CNMI, Guam, and the USVI, see GAO, U.S. Insular Areas: Economic, Fiscal,
        and Financial Accountability Challenges, GAO-07-119 (Washington, D.C.: Dec. 12, 2006).


GAO-10-240R Poverty Determination in U.S. Insular Areas

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