According to United Way of Frederick’s (UW) 2025 ALICE report, 33% of Frederick County families live beneath the ALICE threshold, which stands for access limited, income constrained but employed. In Frederick City, that number goes up to 45% of families.

With chapters across the U.S., United Way gathers data about the conditions of households in the jurisdictions they operate. The ALICE report is produced annually, and provides a local snapshot of what it costs to live in America.

The ALICE threshold represents those families who live above the national poverty level (NPL), but are still not able to meet their day to day needs.

The NPL is the amount of money a household has to make in a year to be considered in poverty. The level remains the same regardless of where someone lives in the US, except for Alaska and Hawaii. Instead it changes depending on the size of a household.

Of the 48 contiguous states, the NPL for a person living on their own is $15,650 per year. For a family of four, it’s $32,150.

National Standards, Local Needs

Ken Oldham, CEO of United Way of Frederick, says the NPL is an outdated system that needs to be adjusted. He points out that even though the NPL is a uniform number, cost of living can vary between states, and even counties. “The federal poverty level uses the same dollar amount for each of those counties,” Oldham said. “That brings with it simplicity, but it also brings with it inaccuracy.”

Each year, the NPL is updated using the consumer price index (CPI). According to the US Bureau of Labor Statistics, the CPI is a, “a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.”

This includes luxury items like jewelry, lawn care and even boats, Oldham says. Things that many ALICE families can’t afford. In response, UW created the ALICE essentials index (AEI), which measures the increase in the cost of essential goods and services over time, without the luxury goods.

Oldham says UW’s data shows the AEI is out pacing the CPI, despite efforts to adjust the national numbers each year. “Which means that every year it's adjusted, it's a little further behind,” Oldham explained. “So not only is the number itself irrelevant, the policy of adjustment is also flawed.”

UW used the AEI to create the ALICE survival budget, an itemized list of average Frederick household expenses. According to UW’s budget, a single adult needs to make $49,380 per year to meet their needs, which is an hourly wage of $24.69. Alternatively, a family of four needs to make $111,588 per year, or $55.79 per hour.

The ALICE Gap

Oldham refers to the difference between the ALICE threshold and the NPL as the ALICE gap.

Most federal programs like the Supplemental Nutrition Assistance Program, Medicare and even housing vouchers rely on the NPL. In some cases, a family can earn twice the NPL for their family size and still be eligible for programs.

Even still, Oldham says there are many Frederick families left ineligible. “They’re making too much to qualify for a housing voucher but they still can’t afford groceries,” Oldham said.

When this happens, Oldham explained that case workers can struggle to find programs their client families can take advantage of. On the other end, local policy makers may find themselves in an even trickier spot. “Just imagine being a decision maker in a community, trying to resolve homelessness and access to food, and having to work with a number that is completely irrelevant for my community compared to one of my neighboring communities,” Oldham explained.

Primary Causes

In Frederick County, Oldham identified four primary factors that pushed families below the ALICE threshold.

Rent and cost of housing, Oldham said, made up a disproportional amount of that burden. The median household rent in 2000 was $719, while in 2025, it’s $1,706. That is an increase of 137%.

Transportation made up the next highest burden, with fuel playing a primary role in that cost. Oldham explained that was only the case if a family owned a car. “We’re also dealing with a number of households that are completely dependent on public transportation,” Oldham said.

This became a costly problem, Oldham explained, for families that lived outside of city centers and in more rural areas. They might need to rely on ride share services, the costs of which could become an impediment.

Child care also plays a major role, Oldham explained, with a 2023 study finding that 80% of Frederick County families relied on childcare for work. 38% of families said child care added more than 30 minutes to their commute, while 46% spent more than $1,200 per month on services.

Food and health care were the last factors on Oldham’s list. He pointed out that many Frederick residents have health care through their employers, but explained costs can go up quickly if someone becomes unemployed or is self employed.

Vulnerable Demographics

While Frederick residents under the age of 25 make up the smallest population of ALICE households, 85% find themselves below the threshold, the highest percentage of any age range.

Oldham says it can be a challenge to track data about that age range because they may not be seeking services. This partly comes from the fact that many young adults find themselves living on their own for the first time.

One cause that pushes 25-year-olds below the ALICE threshold is that wages are not keeping up with the cost of living, Oldham explained.

UW was surprised to find the cost of living for senior citizens, $53,496, was higher than for a single adult, $49,380. “We had presumed for years that the cost of living for a senior may be lower,” Oldham said.

As UW dug deeper, higher health care costs, mortgages and the possibility of caring for grandchildren were theorized to play a role.

The ALICE threshold also sheds light on gender and race based disparities. In 2023, 76% of single mothers lived beneath the ALICE threshold. 42% and 45% of African American and Hispanic households, respectively, struggle to provide for their basic needs as well.

Staying Level

Frederick is the fastest growing County and City in the state. With a population of more than 100,000 by 2023, UW estimates that approximately 20,000 new households have found their way to Frederick since 2010.

Despite this, the percentage of ALICE households has remained relatively level at 32% across that time. Oldham says that still means the amount of ALICE households is getting bigger.

While people are constantly moving in and out of Frederick, Oldham notes the numbers show few people are leaving the ALICE threshold. “Between 2022 and 2023, there was a net increase of one household that was not ALICE,” Oldham explained.

In order to look at why the percentage of ALICE households is remaining so level, Oldham says the problem needs to be looked at from 20,000 feet.

Taxes can play a significant role, Oldham explained. The child tax credit was temporarily increased during Covid, elevating millions of children out of poverty. When that was taken away, many of those children found themselves in poverty once more.

While the percentage of ALICE households isn’t going up, Oldham explained stabilization was insufficient. He wants to see that number go down. “We want the support infrastructures to be put in place to support ALICE households,” Oldham said. “We’d like to see wages increase for low income households as well.”

Next Steps

Oldham explained one of the best ways to get people out from under the ALICE threshold is to help them out of renting situations and into homes. The ability to grow equity in a house allows a family to build up resources for themselves and their heirs.

One such program is UW’s pathway to homeownership. As part of the program, residents are required to save $3000, which UW then matches with $14,000. Oldham says 34 families have graduated from the program.

Expanding the public transportation system, Oldham explained, would allow more residents the ability to get to and from work. “You are putting money back into the pockets to afford rent, food and medications.”

Lastly, Oldham says education is key. Not just focusing on academia, but also on practical and career focused skills.