S. 3756

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 3756 Introduced in Senate (IS)]

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119th CONGRESS
2d Session
S. 3756

To require the Bureau of the Census, in measuring poverty, to 
incorporate the distributional analysis of household income used by the 
Congressional Budget Office, and for other purposes.

_______________________________________________________________________

IN THE SENATE OF THE UNITED STATES

February 2, 2026

Mr. Kennedy introduced the following bill; which was read twice and 
referred to the Committee on Homeland Security and Governmental Affairs

_______________________________________________________________________

A BILL

To require the Bureau of the Census, in measuring poverty, to 
incorporate the distributional analysis of household income used by the 
Congressional Budget Office, and for other purposes.

Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Poverty Statistics Enhancement 
Act''.

SEC. 2. DEFINITIONS AND SPECIAL RULES.

In this Act:
(1) Administering agency.--The term ``administering 
agency'' means a Federal, State, or local governmental agency 
responsible for assessing income, collecting revenue, 
administering a benefit, or collecting, compiling, and 
analyzing data related to income assessments, revenue 
collections, or benefits administration.
(2) Director.--The term ``Director'' means the Director of 
the Bureau of the Census.
(3) Earned income.--
(A) In general.--The term ``earned income'' means 
income paid to individuals from the following:
(i) Earnings from employment or self-
employment, including employment by a 
governmental entity to perform specific 
services, with continued employment conditional 
on successful delivery of those services.
(ii) Interest.
(iii) Dividends.
(iv) Rents, royalties, and estates and 
trusts.
(v) Realized capital gains.
(vi) The monetary value of employer-paid 
benefits, including--
(I) health insurance premiums;
(II) the actuarial value of--
(aa) employer-funded health 
insurance net of employee 
contributions;
(bb) life insurance 
premiums;
(cc) contributions to a 
health savings account (as 
defined in section 223(d) of 
the Internal Revenue Code of 
1986);
(dd) contributions to a 
qualified cash or deferred 
arrangement (as defined in 
section 401(k)(2) of such 
Code);
(ee) contributions to an 
individual retirement plan (as 
defined in section 7701(a)(37) 
of such Code); and
(ff) employer contributions 
to a defined contribution 
retirement plan (as defined in 
section 414(i) of such Code);
(III) benefits from a defined 
benefit retirement plan (as defined in 
section 414(j) of such Code) at the 
time the benefits are delivered;
(IV) benefits provided to 
government employees tied specifically 
to their employment, including veterans 
benefits; and
(V) other benefits paid by an 
employer during retirement, including 
pensions, healthcare coverage, and 
other benefits, counted at the time at 
which the benefit is received.
(vii) In-kind compensation such as cost-
free or reduced-cost lodging or meals, except 
for items required by the employer for 
performing work, such as uniforms or personal 
protective equipment.
(B) Special rules for earned income.--
(i) Adjustments generally.--For purposes of 
subparagraph (A), all types of earned income 
shall be reconciled and adjusted to known, 
reliable independent benchmarks, including 
benchmarks produced by statistical agencies, 
programmatic agencies, the Internal Revenue 
Service, private sources, and such other 
sources as the Director determines appropriate.
(ii) Readjustments.--In addition to 
adjusting earned income under clause (i), 
additional adjustments shall be made for 
missing and misreported data based on existing 
and future research by the Bureau of the 
Census, other government agencies, academic 
researchers, and other private research.
(4) Government transfer payments.--
(A) In general.--The term ``government transfer 
payments'' means any money, goods, services, or 
discounts provided to individuals, families, or 
households by or at the direction of Federal Government 
or State, local, or other government sources, including 
agencies and agents thereof, or by private entities at 
the direction of any such source, that are not payments 
for services performed as an employee or that are not 
provided equally to all legal residents of the United 
States without any conditions related to income, 
assets, economic status, age, social condition, or any 
other restriction.
(B) Inclusions.--The term ``government transfer 
payments'' includes the following:
(i) Unemployment insurance compensation.
(ii) Workers' compensation.
(iii) Benefits administered by the Social 
Security Administration, including--
(I) old-age insurance benefits and 
disability insurance benefits under 
title II of the Social Security Act (42 
U.S.C. 401 et seq.); and
(II) supplemental security income 
benefits under title XVI of such Act 
(42 U.S.C. 1381 et seq.).
(iv) Benefits under the Railroad Retirement 
Act of 1974 (45 U.S.C. 231 et seq.).
(v) Other disability benefits from 
government, except those provided to government 
employees as part of their employment 
compensation.
(vi) Benefits provided under the Medicare 
program under title XVIII of the Social 
Security Act (42 U.S.C. 1395 et seq.), 
including any income-related subsidy described 
in section 1860D-14 of such Act (42 U.S.C. 
1395w-114), and any other reduction in premiums 
or cost sharing, such as deductibles, 
copayments, or coinsurance under such title.
(vii) So much of the amount of any income 
tax refund paid to a taxpayer which is 
attributable to--
(I) the earned income credit under 
section 32 of the Internal Revenue Code 
of 1986;
(II) the child tax credit under 
section 24 of such Code; and
(III) any other refundable credit 
under subpart C of part IV of 
subchapter A of chapter 1 of such Code.
(viii) Assistance or benefits provided 
under the Temporary Assistance for Needy 
Families program established under part A of 
title IV of the Social Security Act (42 U.S.C. 
601 et seq.).
(ix) Medical assistance provided under the 
Medicaid program established under title XIX of 
the Social Security Act (42 U.S.C. 1396 et 
seq.).
(x) Child health assistance or pregnancy-
related assistance provided under the State 
Children's Health Insurance Program established 
under title XXI of the Social Security Act (42 
U.S.C. 1397aa et seq.).
(xi) Benefits provided pursuant to an 
Indian health program (as defined in section 4 
of the Indian Health Care Improvement Act (25 
U.S.C. 1603)).
(xii) Premium tax credits under section 36B 
of the Internal Revenue Code of 1986, cost-
sharing reduction payments under section 1402 
of the Patient Protection and Affordable Care 
Act (42 U.S.C. 18071), or any other payment 
that reduces the premium amount paid by the 
enrollee.
(xiii) Any other government payments to 
assist in purchasing medical care or health 
insurance.
(xiv) Benefits under the supplemental 
nutrition assistance program established under 
the Food and Nutrition Act of 2008 (7 U.S.C. 
2011 et seq.).
(xv) Free and reduced price meals provided 
under the Richard B. Russell National School 
Lunch Act (42 U.S.C. 1751 et seq.) and section 
4 of the Child Nutrition Act of 1966 (42 U.S.C. 
1773).
(xvi) Benefits and services provided under 
the special supplemental nutrition program for 
women, infants, and children established by 
section 17 of the Child Nutrition Act of 1966 
(42 U.S.C. 1786).
(xvii) Meals provided under the child and 
adult care food program established under 
section 17 of the Richard B. Russell National 
School Lunch Act (42 U.S.C. 1766).
(xviii) Rental assistance under section 8 
of the United States Housing Act of 1937 (42 
U.S.C. 1437f), including housing choice 
vouchers and project-based rental assistance.
(xix) Assistance provided by the Rural 
Housing Service of the Department of 
Agriculture, including rental assistance.
(xx) Assistance (including services) under 
the Low-Income Home Energy Assistance Program, 
established under the Low-Income Home Energy 
Assistance Act of 1981 (42 U.S.C. 8621 et 
seq.).
(xxi) A Federal Pell Grant under section 
401 of the Higher Education Act of 1965 (20 
U.S.C. 1070a).
(xxii) So much of the American Opportunity 
Tax Credit under section 25A of the Internal 
Revenue Code of 1986 as is allowed under 
subsection (i) thereof.
(xxiii) Such other transfers by or at the 
direction of Federal Government or State, 
local, or other government sources that the 
Director determines to be consistent with 
subparagraph (A) using available data sources.
(5) Income tax data.--The term ``income tax data'' means 
return information, as defined in section 6103(b)(2) of the 
Internal Revenue Code of 1986 (26 U.S.C. 6103(b)(2)).
(6) Statistical agency.--The term ``statisical agency'' 
means--
(A) the Bureau of Labor Statistics of the 
Department of Labor;
(B) the Bureau of Economic Analysis of the 
Department of Commerce; and
(C) any other Federal, State, or local government 
entity that collects, processes, or publishes data 
related to any of the components of income covered by 
this Act.
(7) Taxes.--
(A) In general.--
(i) General definition.--The term ``taxes'' 
means all money revenues paid by individuals, 
families, or households to the Federal 
Government or a State, local, or other 
government either directly or indirectly 
through an employer or other entity based on 
their earnings from employment, savings, 
investing, real estate, trusts, or other 
sources or on the value, ownership, or usage of 
real estate property, personal property, other 
assets of any kind, or purchases of goods and 
services (including both real and financial).
(ii) Inclusions.--The term ``taxes'' 
includes--
(I) employment taxes under subtitle 
C of the Internal Revenue Code of 1986 
(whether paid by the employer or 
employee);
(II) income taxes, including taxes 
on investment income;
(III) corporate income taxes 
allocated to shareholders based on best 
research on share of corporate taxes 
that reduce dividends;
(IV) corporate income taxes 
allocated to employees based on best 
research on share of corporate taxes 
that reduce compensation;
(V) self-employment income and 
payroll taxes;
(VI) property taxes;
(VII) capital gains taxes;
(VIII) estate taxes;
(IX) inheritance taxes;
(X) gift taxes;
(XI) sales taxes, use taxes, value 
added taxes, or any other fee collected 
by government on sales of any goods or 
any services (either real or financial) 
to households or individuals;
(XII) excise taxes paid either 
separately or included as part of the 
price paid for a good or service;
(XIII) tariffs and duties paid 
either directly or as part of the price 
paid for a good or service; and
(XIV) such other sources of money 
revenues that the Director determines 
to be consistent with clause (i).
(B) Special rules for determining amounts of tax.--
(i) In general.--For purposes of 
subparagraph (A), totals of taxes shall be 
reconciled and adjusted to sum to total tax and 
other revenue income available from other 
reliable sources, including the Office of 
Management and Budget, the Department of the 
Treasury, and the Bureau of Economic Analysis.
(ii) Treatment of tax credits.--With 
respect to any taxpayer:
(I) The amount of taxes paid shall 
be determined without regard to any 
refund paid to the taxpayer which is 
attributable to any refundable credit 
under subpart C of part IV of 
subchapter A of chapter 1 of the 
Internal Revenue Code of 1986.
(II) The amount of any refund paid 
to the taxpayer which is attributable 
to any such refundable credit shall be 
treated as a government transfer 
payment in accordance with paragraph 
(3).

SEC. 3. ADJUSTMENT OF CENSUS INCOME INEQUALITY CALCULATION.

(a) New Methodology.--
(1) In general.--Not later than 1 year after the date of 
enactment of this Act, the Director, in consultation with the 
heads of other appropriate Federal, State, and local agencies, 
as determined by the Director, shall implement a new 
methodology to measure poverty, in addition to the Official 
Poverty Measure and the Supplemental Poverty Measure, that--
(A) uses the methodology outlined in the report of 
the Congressional Budget Office titled ``Reconciling 
the Official Poverty Measure and CBO's Distributional 
Analysis of Household Income''; and
(B) measures the income of an individual as the 
amount equal to--
(i) the sum of earned income and government 
transfer payments received by the individual, 
less
(ii) the taxes paid by the individual.
(2) Resolution of potential conflict.--To the extent of any 
conflict between the requirements under subparagraphs (A) and 
(B) of paragraph (1), the requirement under such subparagraph 
(A) shall supersede the requirement under such subparagraph 
(B).
(b) Agency Data.--
(1) Federal agencies.--Not later than 180 days after the 
head of a Federal agency receives a request from the Director 
for data possessed or reasonably obtainable by such Federal 
agency for carrying out this section, such head shall make 
available to the Director such data to the extent otherwise 
permitted by law.
(2) State and local agencies.--The Director may request the 
head of a State or local agency that is an administering agency 
to provide such data as the Director determines necessary to 
carry out this section.
(c) Publication of Data.--
(1) Data report.--Not later than 1 year after the date on 
which the Director implements the new methodology required 
under subsection (a), the Director shall submit to Congress a 
report detailing the implementation of this Act, including the 
availability and quality of data from the administering 
agencies from which the Director has requested information for 
carrying out this section.
(2) Measurement report.--
(A) In general.--Not later than 1 year after the 
date on which the Director implements the new 
methodology required under subsection (a), the Director 
shall submit to Congress a report detailing the 
implementation of this Act, including--
(i) the recalculated measures of income 
inequality based on the new calculation 
methodology implemented under subsection (a);
(ii) a comparison between the recalculated 
measures of income inequality and of household 
income dispersion based on the new calculation 
methodology implemented under subsection (a) 
and such measures based on the calculation 
methodologies in use for such measures on the 
day before the date on which such new 
calculation methodology was implemented; and
(iii) a comparison between each statistic 
tracked by the Bureau of the Census based on 
the new calculation methodology implemented 
under subsection (a) and such statistic based 
on the calculation methodologies in use for 
such statistic on the day before the date on 
which such new calculation methodology was 
implemented.
(B) Data sources.--
(i) In general.--The Director shall use the 
best available data sources in creating the 
report required under subparagraph (A), 
including the use of surveys previously 
collected by the Bureau of the Census, data 
from other statistical agencies, data from 
private sources, and, in cases of missing or 
unknown data, statistical imputations.
(ii) Survey augmentation.--In carrying out 
clause (i), the Director may augment surveys 
being carried out by the Bureau of the Census 
or the Bureau of Labor Statistics of the 
Department of Labor.
(3) Statistics publication.--For all publications and data 
sets issued after the date on which the Director implements the 
new methodology required under subsection (a), the Director 
shall use such new calculation methodology to calculate each 
instance of each measure or statistic based on such 
methodology, including each historical instance.
(d) Protection and Disclosure of Personally Identifiable 
Information.--
(1) In general.--The security, disclosure, and 
confidentiality provisions set for in sections 9 and 23 of 
title 13, United States Code, shall apply to personally 
identifiable information obtained by the Bureau of the Census 
pursuant to this Act.
(2) Restricted access to personally identifiable 
information.--Access to personally identifiable information 
collected to supplement the restricted-use Current Population 
Survey Annual Social and Economic Supplements in accordance 
with subsection (b)(1) shall be available only to those who 
have access to the Current Population Survey data with the 
permission of the Bureau of the Census and in accordance with 
any other applicable provision of Federal and State law.
(3) Criminal penalties.--Any individual who knowingly 
accesses or discloses personally identifiable information in 
violation of this section shall be fined not more than 
$300,000, imprisoned for not more than 5 years, or both.
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