Income Stability

Income Stability is a family’s ability to meet their basic needs on a regular basis.

Income Stability

Income Stability is a family’s ability to meet their basic needs on a regular basis.

Food insecurity isn’t driven by a lack of food – it’s an economic issue rooted in a family’s inability to close the gap between their basic needs and their income.

Learn About Hunger - Income Stability

Food Insecurity is Driven by Lack of Income Stability

In households living paycheck to paycheck, the cost of rent, utilities, childcare, internet , transportation, and healthcare often leave little left over for nutritious food. As a result, families teeter on the edge of financial instability, where one unexpected expense — a blown tire, a rent hike, or unpaid sick days — can push them into hunger.

This issue isn’t confined to those living in poverty. A large gap between income and basic need expenses exists for almost half of Americans, limiting the economic mobility of working families both above and below the poverty line. They lack a “Survival Budget” – a term that refers to what it takes to pay for necessities plus having a small contingency fund.

A couple with their shopping cart of food.
For a Family of 4 the gap between the poverty line ($31,200) and the basic cost of living ($72,816) is $41,616. 4.7 million Texas households fall into this gap and live below the survival budget.

More than half of food-insecure families work full time, and 28% of working Americans, while not counted as “poor” by federal standards, still face difficult choices between basic needs.

0%
of Texas families cannot afford the basics to live.
0%
of food insecure families are employed full-time.

In Texas, recent wage increases haven’t kept up with the rising costs of living, leaving many workers — home health aides ($10.20/hr), cooks ($13/hr), waiters ($10.38/hr), retail sales workers ($11/hr), cashiers (12.39/hr) and construction workers ($16/hr) — earning barely enough to get by.

A large (and growing) number of Texans working these jobs face unpredictable schedules, fluctuating incomes, and lack access to paid leave, healthcare, and childcare.

What Contributes to Income Instability?

Job Stability and Opportunity

Unpredictable schedules, low wages, and lack of paid sick time leave workers constantly exposed to financial shocks. Without worker protections, families are forced to pay out-of-pocket costs, postpone preventative care, or come to work sick, possibly infecting others. Minor disruptions like car trouble or illness have the potential to spiral into major financial crises, which not only destabilize workers but employers and the broader economy.

Education Access

Without affordable pathways to higher education, vocational training, or skills development, individuals are often confined to low-wage jobs with little room for stability, advancement, and long-term economic security.

Transportation Barriers

Reliable, affordable transportation is critical for connecting families to well-paying jobs, grocery stores, healthcare, and childcare.

Childcare

Childcare in Texas is often expensive or unavailable due to limited subsidy vouchers. This means many parents must choose between staying home and losing income or finding substandard care for their children.

Benefits Cliff

The benefits cliff is a phenomenon where even a small bump in income can result in the loss of public benefits such as subsidized childcare, housing, or nutrition benefits – leaving families financially worse off. Instead of serving as a bridge to stability, sharp cutoffs create a system where people are forced back into dependency.

The barriers to income stability — and by extension, food security — are deeply intertwined. Families whose members have disabilities, single parents (especially women), children, formerly incarcerated individuals, and veterans often face these barriers more acutely, compounding financial strains and increasing their risk of food insecurity.

Income Instability

In the United States, nearly 40% of households cannot cover a $400 expense. One unexpected cost – a car repair, medical emergency, or busted pipe can lead them to a financial crisis.

0%
of Texas households living paycheck to paycheck can’t manage three months of living costs in case of an emergency.

This instability isn’t an individual problem; it impacts the broader economy. Financially stable workers — pay rent on time, shop at local businesses, and foster economic growth. Conversely, the chaos of perpetual income instability drives food insecurity and weakens local economies.

Policy Roadmap

Affordable Childcare and Paid Leave

Ensuring access to affordable childcare and paid sick leave allows parents to stay in the workforce and maintain steady incomes.

Expanded Child Tax Credits

Expanding child tax credits for low income working families is a proven way to reduce childhood poverty, free up income for family necessities, and boost local economies.

Education and Training

Enhancing access to education and specialized job training can help bridge the income gap and reduce food insecurity. Many Texas industries are projected to grow in demand for workers with specialized training. However, education and training must be directly linked to jobs which provide stable earnings and opportunities for long-term economic security.

Reduce the Benefits Cliff

Too often, small income increases result in families losing benefits before reaching the level of stability the public assistance was intended to help them achieve. Eliminating the benefits cliff allows families to transition smoothly out of poverty, thereby reducing the likelihood they will have to return to using public benefits.

Sources

U.S. Department of Health and Human Services. (2024). Poverty Guidelines. https://aspe.hhs.gov/topics/poverty-economic-mobility/poverty-guidelines

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