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Get to Know ALICE

Across the Greater Twin Cities, 35% of our neighbors struggle to afford basic needs despite working in jobs we all rely on. A quarter of these households earn less than the federal poverty threshold, but most are ALICE® (Asset-Limited, Income-Constrained, Employed). ALICE households earn less than the Federal Poverty Level (FPL) but too much to qualify for many types of assistance.
Family reviewing documents while working on a computer.

Who is ALICE?

ALICE is your family, friend, neighbor, or you, who works full time, but doesn’t earn enough income to afford their basic needs. Like many of us, ALICE works every day to strengthen our community by keeping our businesses running, caring for our loved ones and making the Greater Twin Cities a better place to live.  

Every day, ALICE households are forced to make difficult choices, like deciding whether to pay for utilities or a tank of gas; whether to buy food or fill a prescription; whether to pay for childcare or miss work.

The State of ALICE in Minnesota

According to data in the report, The State of ALICE in Minnesota: 2026 Update on Financial Hardship, 35% of Greater Twin Cities residents lived in households that couldn’t afford basic needs like housing, food and childcare. This includes the percentage of households earning at or below the Federal Poverty Level (FPL) combined with ALICE households, which earn more than the FPL, but not enough to cover the cost of basic needs.

Twin Cities Households Facing Financial Hardship

9%
below Federal Poverty Level
+
26%
ALICE households
=
35%
financial hardship

What it Takes to Survive in the Twin Cities

Costs of living vary widely across Minnesota. ALICE data breaks down what it takes for local families to survive in each county. The ALICE Household Survival Budget considers the real cost of basic needs such as housing, childcare, food, transportation, health care and technology.

For example, this is what it takes to cover the basics for a family of four (two adults, two children in childcare) in different Twin Cities counties compared to Federal Poverty Level guidelines

US Federal Poverty Level: $31,200 annually
Hennepin County: $106,344 annually
Isanti County: $94,344 annually

As you can see, the FPL does not come close to covering what it takes to survive in the Twin Cities. Though widely used as a benchmark for measuring financial hardship, this obsolete measure significantly underestimates the true scale of economic distress in our community.

For ALICE households a survival budget means just that, they earn enough to get by, but anything extra is just out of reach. So, saving for the future, or even those unexpected expenses we all experience, is simply not possible.

Is your household ALICE? Discover The ALICE Household Survival Budget →

What it Means to Thrive in the Twin Cities

We’re all better off when everyone has stable housing, nutritious food, opportunities to learn, and careers that support our families. In the Greater Twin Cities, thriving means consistently being able to:

Cover the basics

housing, childcare, food, transportation, health care, and technology to connect with work, school and community.

Manage Emergencies

whether community-wide (like the impacts of policy changes) or personal (such as car trouble).

Save for the Future

which is necessary to achieve long-term financial stability.
For ALICE households, these benchmarks of financial stability are out of reach. Despite “doing all the right things,” they can’t get ahead and are often one emergency away from financial disaster.
“The barrier to entry is high, and entering doesn’t mean thriving because there’s catch up like paying off debt among other things. ALICE data shows us that you can do all the right things and still be unable to meet your basic needs.”
– Daisuke Kawachi, Program Officer, Holistic Grantmaking

WHY WE'RE UNITED FOR ALICE

Supporting everyone in our region to advance above the ALICE threshold is core to our vision of a community where all thrive regardless of income race and place. This is why we invest in:  

We also lead various volunteer initiatives that help our neighbors meet their basic needs and reduce their budgets, including food, household essentials and school supplies.  

Greater Twin Cities United Way and our partners use data from The State of ALICE in Minnesota to inform our development of future funding opportunities, as well as our ongoing advocacy at the state and federal level.  

Why Does ALICE Matter?

ALICE matters for all of us: taxpayers, employers, families and seniors, rural, suburban and metro. Every neighbor that moves from ALICE to thriving contributes to:

  • Reduced spending on crisis services, such as food and housing, and lower health care costs.
  • Greater health and academic outcomes for individuals, families and our region as a whole.
  • A stronger, more productive regional economy with more consumer spending and tax revenue.  

Frequently Asked Questions About ALICE

The State of ALICE in Minnesota was developed in partnership between the United Ways of Minnesota (including Greater Twin Cities United Way) and research partner United for ALICE. The report is updated every two years and compiles data on financial hardship in Minnesota.  

Traditional measures of poverty, like the Federal Poverty Level (FPL), are obsolete and continue to undercount the number of Twin Cities households experiencing financial hardship. The FPL is calculated using household size and is the same for all 48 contiguous United States. It does not consider cost of living variances by location or the true cost of basic needs. 

While 9% of all households in the nine-county Twin Cities metro area earned at or below the FPL in 2024, the latest research shows that 26% of households – nearly three times as many – were ALICE® (Asset Limited, Income Constrained, Employed). These households earned more than the FPL, but not enough to fully cover the costs of basic needs. Combined, an estimated 35% of Twin Cities households fell below the ALICE Threshold of Financial Survival in 2024.  

The Greater Twin Cities United Way's 211 resource helpline provides free and confidential health and human services information for people in Minnesota. Our call specialists are available 24 hours a day, 7 days a week to connect individuals with resources and information, including food, housing, employment and more. Learn more about the 211 resource helpline. 

United is the Way to Local Impact

Our community is stronger when every neighbor — regardless of income, race or place — has nutritious food, stable homes, a quality education and economic opportunity. Join us as we work toward our vision of a community where all people thrive.  

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