ALICE offers a clearer picture of the Oregonians caught between rising costs, modest wages and the basic necessities of everyday life
A popular activity at United Way workshops is the “Impossible Choices” interactive simulation. Participants are asked to make budget decisions for a two-income family earning above the federal poverty level but still struggling to meet basic needs. Do they pay the electric bill or buy groceries? Do they host a child’s birthday party or pay for a prescription?
For about 30% of working Oregonians, that is not an imaginary scenario – it is bitter reality. According to The Ford Family Foundation’s most recent Oregon by the Numbers report, many of Oregon’s working families with two employed adults and two children in childcare earn nearly $18,000 less than the cost of basic expenses, but do not qualify for public assistance.
United Way has developed a measurement tool called ALICE (Asset Limited, Income Constrained, Employed) that quantifies the true number of people who have an income above federal poverty thresholds but below the level needed to meet basic needs. Combining ALICE households with those living in poverty, an estimated 41% of all households in Oregon were below the ALICE threshold in 2024. By contrast, the federal poverty level identified just 12% of Oregon households as being in poverty during the same year. In four of Oregon’s rural counties, the majority are ALICE households.
Forty-one percent of Oregon households faced financial hardship in 2024. Sources: ALICE Threshold, 2024; U.S. Census Bureau, American Community Survey, 2024.
“We adopted ALICE as a measure of financial hardship in Oregon by the Numbers because it tells a clearer story about the realities so many Oregonians are facing, especially families with children,” says Kasi Allen, the Foundation’s vice president of Learning and Impact. “These are your hardworking neighbors – the teller at your bank, the teacher’s aide at your local school, the checker at your favorite grocery store. The ALICE tool sheds light on the affordability challenge in ways that can potentially lead to policy changes.”
Oregon was one of the first states to participate in the national ALICE initiative, which now includes more than 40 states. The Oregon by the Numbers report has included this data since 2020, including insights like this: A large percentage of people employed in the most common Oregon occupations are paid wages below the ALICE basic necessities threshold. This includes cashiers (47%), truck drivers (39%) and retail workers (36%).
Federal definitions
“One thing that ALICE does is illustrate the disparity and the dysfunction of the federal definitions right now,” says Jim Cooper, president and CEO of the United Ways of the Pacific Northwest. For example, the federal poverty level in Oregon for a family of four is $31,200. A combined salary for a cook and bank teller averages $73,000. But, considering the cost of basic bills in Oregon, those two jobs need to make $91,000 for what ALICE calls a survival budget. “If they want to have a little bit for a movie, save some money for a rainy day, then they probably need to make $110,000, $120,000 for what we call a sustainability budget,” Cooper says. “It’s really about knowing what people are getting paid, and then what the actual costs of housing and childcare and taxes are in each community.”
And then there’s the cost of constantly living on the edge. Households existing on a survival budget must operate in a state of constant stress, affecting mental and physical health, education opportunities, and quality of life for the entire family.
ALICE in action
The United for Alice website features a variety of reporting tools, comprehensive interactive dashboards and state-level reports. It also offers insight in how the measure is being used by partners, including The Ford Family Foundation, to support programs, practices and policy change. Early childhood advocates are using ALICE data to support legislation that promotes affordable daycare. An Oregon credit union is looking at data insights to inform its commitment to helping individuals and families build stronger financial futures. Funders in Arkansas are joining forces to alleviate medical debt.
And the movement is growing, with recent national concern about the economy bringing attention to the ALICE initiative. “The thing that’s hopeful for me is that for the first time in history, affordability is a central talking point,” Cooper says. “I’m getting more calls, and there’s more presentations, and more conversations, and my motivation right now is just to get more people talking about the reality of what people are facing.”