When considering the cost of living, California and Louisiana unexpectedly rank among the states with the highest poverty rates. This contrasts with traditional poverty rankings which often highlight Southern states. Axios analyzed Census Bureau data for 2023-2025 after incorporating factors like housing, taxes, medical expenses, and government benefits. Under the traditional measure, Louisiana had a 19.6% poverty rate and California was at 10.7%. However, California's poverty rate significantly increased to 17.8% when using the Supplemental Poverty Measure (SPM). The SPM accounts for benefits, taxes, and expenses, and adjusts for geographic cost of living differences. This broader measure reveals a more nuanced picture of poverty beyond just pre-tax cash income. The SPM remained statistically unchanged nationally at 13.1%, nearly three percentage points higher than the official rate of 10.2%. While median household income reached a record high, the SPM serves as an additional perspective on financial realities. State poverty figures are based on three-year averages due to sample size limitations. Ultimately, income alone does not fully indicate a family's ability to meet their needs.