INDIANA — More than one-third of Indiana households are locked in a quiet financial crisis. Despite being employed, an increasing number of Hoosiers earn less than the baseline cost of living in their own communities, according to the newly released State of ALICE in Indiana report.
The study, published by United For ALICE in partnership with Indiana United Ways and the United Way of Central Indiana, highlights a stark reality: 38% of households statewide, representing more than 1.05 million families, cannot consistently afford necessities like housing, child care, food, transportation, health care, and technology.
The report shifts focus away from the traditional federal poverty guidelines, which researchers say are obsolete and severely underestimate modern financial hardship. Instead, it tracks ALICE households, an acronym for Asset Limited, Income Constrained, Employed.
In Lawrence County, Indiana, 44% of households struggle to make ends meet. This is significantly higher than the statewide average of 38%.
Breaking down the local data from the most recent UnitedForALICE Indiana County Snapshots, the community’s financial landscape reveals severe strains on working families.
Out of the 12,349 total households in Lawrence County:
- 10% live in poverty (below the Federal Poverty Level).
- 34% are classified as ALICE (above poverty, but earning below a survival income).
- 44% total households live below the ALICE threshold.
Local Demographics & Economy
- Median Household Income: $61,731 (lower than the Indiana state average of $66,785).
- Labor Force Participation: 61.9% (below the state average of 63.9%).
- Elderly Vulnerability: Lawrence County has a higher percentage of residents aged 65 or older (20.6% compared to the state’s 16.1%), a demographic that heavily populates the ALICE fixed-income population.
The Household Survival Budget tracks the absolute minimum needed for housing, child care, food, transportation, healthcare, technology, and local taxes. It leaves zero room for savings, minor emergencies, or entertainment.
Because the cost of necessities is outpacing standard local wages, a single adult in Lawrence County must earn roughly $13.85 per hour full-time ($27,696 annually) just to survive. For a family of four with two adults and two young children, that survival threshold jumps to $37.19 per hour combined ($74,376 annually). Meanwhile, many of the county’s retail, food service, and caregiving jobs continue to pay below $15 to $20 an hour.
According to Sam Snideman, Vice President of Government Relations for the United Way of Central Indiana, unlike the federal poverty line, which is a national standard based on a limited basket of goods, United Way’s ALICE calculations are based on cost-of-living data and thus vary by state, county, and year.
While the 2024 Federal Poverty Level sits at $31,200 for a family of four, the United Way report reveals that a realistic Household Survival Budget for two adults, an infant, and a preschooler in Indiana averages $74,028. That survival threshold sits above Indiana’s median household income of $71,958, forcing many working families into impossible trade-offs between groceries and prescription medications.
Disparities and Essential Occupations
The data underscores how financial hardship disproportionately impacts specific demographic sectors and household structures across the state:
| Demographic / Household Category | Percentage Below ALICE Threshold |
| Households Headed by Single Women | 72% |
| Black Households | 55% |
| Households Headed by Single Men | 49% |
| Hispanic & Multiracial Households | 43% |
| White Households | 36% |
David Schroeder, Senior Director of Strategic Insights for the United Way of Central Indiana, noted that the economic strain results from stagnant wages colliding with relentless inflation. Bureau of Labor Statistics data from May show overall prices climbed 4.2% year-over-year, with sharp increases in essential categories like clothing (4.8%), medical care (3.6%), and shelter (3.4%).
Furthermore, holding a job is no longer a guarantee of financial stability. Hardship extends into Indiana’s most common occupations. According to the report, 41% of workers in the accommodation and food services sector live below the threshold, including 54% of waitstaff and 46% of cashiers.
According to Schroeder, the percentage of households in ALICE in central Indiana has stayed about the same, but it’s the volume that’s increased. So, proportionately, it looks similar, but the actual number has gone up.
The Policy Path Forward
To stem the rising tide of financial insecurity, United Way leaders are pointing state lawmakers toward structural policy solutions. At the top of the priority list are targeted child care investments and the reinforcement of the social safety net.
According to Snideman, child care disruptions mean the loss of a job and, ultimately, the descent into poverty. He says there is a need to strengthen the child care system to ensure that families don’t fall into poverty and can climb out of ALICE.
Child care remains a severe economic barrier, but it has caught the attention of state leadership. Governor Mike Braun has signaled that expanding child care access will be a legislative priority during the upcoming 2027 state budget session.
Beyond child care, advocacy groups are urging policymakers to address the “cliff effect” embedded in public assistance programs. Currently, individuals can lose their public benefits abruptly once their earnings cross a strict threshold. Snideman recommended implementing a gradual step-down phase for public assistance, which would prevent the sudden loss of benefits and encourage workers to confidently accept job promotions and raises that foster long-term independence.
