KNOXVILLE, Tenn. (WOKI / WVLT) — A new report is shedding light on the growing number of working families in Tennessee who are struggling to afford basic necessities, even if they earn above the federal poverty line.
The 2024 ALICE Report reveals that while 14% of Tennessee households officially fall below the federal poverty level, an additional 28% are considered “ALICE” — Asset Limited, Income Constrained, Employed. These are households that earn too much to qualify for many forms of assistance, yet still cannot cover essential expenses.
Altogether, the report estimates that 41% of Tennessee households — roughly 1.19 million out of 2.88 million — were living below the ALICE Threshold in 2024. That threshold reflects the real cost of living, including housing, child care, food, transportation, health care, technology, and taxes, which can vary depending on location.
Kaki Reynolds, Senior Director of Economic Mobility at the United Way of Greater Knoxville, says the federal poverty level does not fully capture the financial reality for many working families.
“The federal poverty level is the amount nationally that families or households need to make to be able to access public benefits,” Reynolds said. “And those that are ALICE are above that, but not yet making enough to afford the cost of basics.”
Locally, the numbers paint a similar picture. Reynolds said just under 40% of households in Knox County fall below the ALICE threshold, with significant differences depending on the neighborhood. In some ZIP codes, she said, the percentage approaches nearly 88%.
For many families, the financial strain means making difficult, everyday decisions. Reynolds described what she called “impossible choices,” such as deciding between paying rent or repairing a car needed to get to work, or choosing between higher-cost childcare and less reliable alternatives.
The strain is also being felt at the checkout line. Knoxville shopper Shantae Hockman said she has noticed prices steadily climbing.
“It’s definitely increased over the years, for sure,” Hockman said. After learning about the ALICE classification, she said the 41% figure did not surprise her.
Community leaders say resources are available for those who need help. Reynolds encourages anyone struggling with food, housing, or other essential needs to call 2-1-1, a free service that connects people with local support programs.
