A new report released by the United Ways of Georgia reveals that nearly 44 percent of Georgia households are unable to afford the basic cost of living in their counties, highlighting deep economic strain despite the state’s post-pandemic growth.
The biennial ALICE Report (Asset Limited, Income Constrained, Employed), published in partnership with the national research organization United For ALICE, paints a stark picture of a working-class workforce that is working full-time but remains one emergency away from financial ruin.
According to the data, 13 percent of Georgia households live below the Federal Poverty Line, while another 31 percent are classified as ALICE. These are households that earn more than the official poverty level—often disqualifying them from public assistance—but less than what is needed to cover a bare-bones survival budget.
The rising cost of survival
The report tracks a localized “Household Survival Budget” across Georgia’s 159 counties. The budget measures the minimal cost of essentials: housing, childcare, food, transportation, healthcare, technology, and taxes.
For a family of four with two adults and two children in childcare, the average statewide survival budget rose to $77,240 in 2024, up more than 18 percent from two years prior.
| Budget Category | Monthly Cost (Family of Four) |
|---|---|
| Housing & Utilities | $1,280 |
| Childcare | $1,150 |
| Food | $980 |
| Transportation | $840 |
| Healthcare | $720 |
| Technology | $95 |
| Miscellaneous / Taxes | $1,372 |
| Monthly Total | $6,437 |
“These aren’t luxury budgets,” said Dr. Sandra Cosner, a researcher studying economic policy at Georgia State University. “There is no savings built in, no travel, no restaurant meals, and no cushion for a car repair or a medical emergency. For 44 percent of our neighbors, this is the absolute floor, and they are falling through it.”
Capitol policy debate reignited
The report’s release is already reverberating under the Gold Dome, where lawmakers are grappling with how to deploy Georgia’s historic $16 billion budget surplus.
Democratic lawmakers quickly pointed to the findings to push for an expansion of the state’s Earned Income Tax Credit (EITC) and a bump in the state’s minimum wage, which has been pegged to the federal minimum of $7.25 since 2009.
“When nearly half of our state is working and still can’t afford groceries and rent, the system is broken. We have the resources in our surplus to provide real, targeted relief through a state-level EITC. It’s time to put that money back in the pockets of working Georgians.”
— State Sen. Nabilah Islam (D-Dunwoody)
Meanwhile, Republican leadership at the Capitol has favored broad-based income tax cuts rather than targeted assistance programs, arguing that lowering the overall tax burden is the most sustainable way to stimulate the economy and lower costs.
“Our focus remains on building a resilient economy that creates high-paying jobs and keeps money in the pockets of all taxpayers,” said a spokesperson for the House Budget Office. “Lowering the state income tax rate to a flat 3.99 percent by 2029 will provide ongoing relief for every working family in Georgia.”
Geographic and demographic divides
The report also highlights deep disparities across the state. While metropolitan Atlanta counties like Fulton and Gwinnett have higher absolute costs, many rural South Georgia counties show much higher percentages of households struggling to get by.
In counties such as Clay, Hancock, and Telfair, more than 60 percent of households fall below the ALICE threshold.
Demographics also play a critical role. According to the report, 57 percent of Black households and 52 percent of Hispanic households in Georgia live below the ALICE threshold, compared to 36 percent of white households.
What happens next
The United Ways of Georgia plans to present the report’s findings to the joint legislative budget committees ahead of the 2027 legislative session. Advocacy groups are hoping the localized data will push counties to dedicate more federal development block grants toward affordable housing and childcare subsidies.
In the meantime, local food banks and direct-aid non-profits are bracing for a busy summer.
“We are seeing people who work two jobs coming to our food pantries because after paying rent and childcare, they have nothing left,” said Marcus Holloway, director of the Metro Atlanta Food Cooperative. “The ALICE report confirms what we see on the ground every single day.”
Marcus James covers the Georgia statehouse, Atlanta city hall, and state policy for WACN 21. Reach him at mjames@wacn21.com.
