Executive Director Nicole McAlexander was a representative for our area on a statewide webinar discussing updated data for the Asset Limited, Income Constrained, and Employed (ALICE) report. The latest State of ALICE in Iowa report shows that one in three Iowa households are struggling to afford basic needs.
Defining ALICE
In 2024, based on the Federal Poverty Level (FPL), 11% of Iowa households were defined as being in poverty. Yet this measure did not account for an additional 23% of the state’s households — more than twice as many — that were also in financial hardship. These households are ALICE: Asset Limited, Income Constrained, Employed — earning above the FPL, but not enough to afford basic expenses in the county where they live.
Combining ALICE households plus those living in poverty, an estimated 34% of households in Iowa were below the ALICE Threshold in 2024.
Households below the ALICE Threshold don’t have enough income to afford their basic needs. They are forced to make impossible choices, like deciding whether to pay for utilities or a tank of gas; whether to buy food or fill a prescription; whether to live close to work and pay more for housing or opt for a longer, more costly commute. And they are less likely to have the resources to cover unexpected household expenses (like an unforeseen car repair or a costly medical bill), or to recover from crises, both widespread (like a natural disaster or public health emergency) and personal (like the loss of a job or family member).
Source: United For ALICE. (2026). “The State of ALICE in Iowa: 2026 Update on Financial Hardship.”