Beyond the Numbers: What the 2026 ALICE Report Means for Communities around the United States

It’s hard to look around and not notice how expensive it is to merely exist in today’s economy, let alone thrive. United Way of Northern New Jersey produces the ALICE report to quantify the number of individuals and families that are working, yet struggle to make ends meet. ALICE stands for Asset Limited, Income Constrained, and Employed. The latest report delivers a sobering reminder of a reality many of us are already experiencing firsthand: working harder does not equal financial security.

In 2024, more than 54 million households across the United States lived below the ALICE Threshold. While 12.5% of households lived below the federal poverty level, an additional 28.8% were classified as ALICE, which also means they earn too much to qualify for many assistance programs but still not enough to cover essential expenses such as housing, child care, food, transportation, health care, technology, and taxes. Together, more than 41% of U.S. households are essentially living paycheck to paycheck.

These households are not disconnected from the workforce. They are the workforce. They are child care providers, health aides, delivery drivers, retail workers, food service employees, and countless others who keep our communities functioning every single day. Yet many are one unexpected expense away from crisis. A car repair, medical bill, missed shift, or rising insurance premium can quickly destabilize a household budget that is already stretched to its limit.

Across the country, local United Ways are seeing these challenges play out in different ways. In Southwest Louisiana, nearly half of households are living below the ALICE Threshold, raising concerns not only about financial stability but also about disaster preparedness, recovery, and transportation for workers in rural areas. In Florida, communities are grappling with rising housing and child care costs that continue to drastically outpace wages. In Southwest Michigan, local leaders report that many working families simply do not have the financial cushion to absorb routine emergencies.

While the data helps us understand the scope of the challenge, it also points to an important truth: there is no single solution.

The factors contributing to financial hardship are interconnected. Housing affordability, workforce development, transportation access, child care availability, benefits navigation, financial education, and emergency assistance all play a role. As the national report notes, improving long-term financial stability requires coordinated action across household supports, community infrastructure, employer practices, and public policy.

Increasingly, organizations are using ALICE data not only to understand and communicate the needs, but to better design and target services for families that are struggling financially but are ineligible for public assistance. Through our work with United Way organizations and nonprofit partners, we have seen firsthand how communities can utilize the ALICE framework to identify who they are serving and how they are serving them, where gaps exist, and what partners and resources are available to fill a need.

The challenges facing ALICE households are significant, systemic, and compounding, but they are not insurmountable. Communities and organizations already possess many of the resources and building blocks needed to build financial security for working families. The next step is ensuring those efforts are coordinated among partners and sectors, informed by data, and focused on the realities of supporting and engaging with ALICE. 

The 2026 ALICE Report reminds us that financial hardship is not limited to any one demographic or geographic area. It affects almost half of our country. It affects millions of working households who are contributing to their communities while struggling to make ends meet. Understanding that reality is the first step. Building coordinated and responsive systems that realistically address their needs is next. 

Check out the 2026 State of ALICE Report here.