The Federal Reserve Bank of New York released new data Wednesday showing a dramatic rise in the number of American households unable to afford sufficient food since 2020, a trend economists describe as “remarkable.” The analysis, drawn from the bank’s monthly Survey of Consumer Expectations, highlights deepening economic divides as higher-income families benefit from rising asset prices while lower-income households grapple with inflation and the expiration of pandemic-era aid.
“We find a remarkable increase in food insecurity, particularly among lower-educated and lower-income households and households with young children,” the economists wrote. The report underscores a broader K-shaped recovery where economic gains flow predominantly to the wealthy, leaving working-class families behind.
Among the most striking findings: 10 percent of households now report struggling to obtain enough food, a six-percentage-point jump from 4 percent in June 2020. For non-white households, the situation is even starker—19.1 percent said they lacked adequate food, a surge from 4.5 percent in 2020. The report also found that more families are dipping into savings, receiving food donations, or relying on SNAP benefits compared to three years ago.
This trend coincides with the end of expanded SNAP benefits and rising costs of living, which have eroded household budgets. Meanwhile, those on the upper end of the K-shaped economy have seen gains from stock market appreciation and home equity growth. The New York Fed researchers noted that respondents reporting food insufficiency also showed declining consumer sentiment and less optimism about finding a job.
The data was collected before the joint U.S.-Israel strikes on Iran in late February, which have since driven up global energy prices. These energy cost increases are likely to further strain household budgets, compounding existing pressures on low-income families. For a deeper look at how state and local leaders can mitigate these impacts, see our analysis on protecting Americans from Iran war energy price spikes.
Consumer sentiment has already fallen sharply, dropping from 56.6 percent in February to 53.3 percent in March, and further to 49.8 percent in April, according to the University of Michigan. The New York Fed noted that these levels are “near or below the low levels seen during the Great Recession and pandemic,” signaling deep unease about the economy.
The findings come as political debates over food assistance and economic policy intensify. The Biden administration has faced pressure to restore expanded benefits, while some GOP lawmakers have argued against further federal spending. The issue is likely to remain a flashpoint as the 2024 election approaches, with voters closely watching how leaders address the rising cost of living. For more on the shifting dynamics within the GOP, read about how Republican lawmakers are increasingly defying Trump.
Experts warn that without targeted policy interventions, food insecurity could worsen, particularly if energy prices remain elevated. The New York Fed’s analysis serves as a stark reminder that the pandemic-era safety net, once dismantled, has left millions of Americans exposed to economic shocks.
