When researchers view the Federal Poverty Level from two years ago, it shows that 10% of Virginia households live at or below the poverty line.
But those statistics do not consider the 28% of households in the commonwealth who are barely making ends meet.
Since 2009, the United Way has been calculating a formula called ALICE (Asset Limited Income Constrained Employed) which accounts for families who are above the Federal Poverty Level but are still struggling to afford basic expenses.
The 2025 ALICE report was released recently, and it shows that many Fredericksburg area families fall into that category as three of the five localities in the region — the City of Fredericksburg and Spotsylvania and Caroline counties — are above the state ALICE level.
“When we underestimate how many households are struggling, we underestimate what it truly takes to build thriving communities,” said Sarah Walsh, Chief Impact Officer with Rappahannock United Way. “This means entire families and essential workers may be overlooked for support, left without the resources they need to stay healthy, achieve financial stability and reach their fullest potential.”
In 2023, 39% of households in Virginia were below the ALICE threshold as the commonwealth ranked 19th in the nation. Out of 3.4 million households in Virginia, 351,398 were below the Federal Poverty Level and another 956,236 were considered ALICE.
In Virginia, the ALICE household budget was $34,200 for a single adult and $99,240 for a family of four with two adults, an infant and preschooler. The poverty line is $14,580 for an individual and $30,000 for a family of four.
According to a release from the Rappahannock United Way, one in three workers in the Fredericksburg region are struggling to pay for their basic needs.
The City of Fredericksburg recorded a population of 28,383 in 2023 with 11,443 households. The median household income was $85,368 (state average: $89,931). The labor force participation rate was 69% (state average: 65%). The ALICE rate was 31% (state average: 28%). The poverty rate was 13% (state average: 10%).
Spotsylvania County’s population at the time of the report was 149,588 with 55,487 households. The median household income was $112,595 with 68% participating in the labor force, 30% of households were ALICE and 5% were living in poverty.
There were 165,428 people living in Stafford at the time of the report with 51,309 households. The median household income was $134,619 with a 71% labor force participation rate. ALICE households were at 27% with 5% below the poverty line.
King George County had a population of 27,468 with 9,877 households. The median household income was $110,517 and the labor force participation rate was 68%. ALICE households were the lowest in the region at 22% and 6% of households were in poverty.
Caroline County had a population of 31,541 with 11,680 households. The average household income was $86,267 and the labor force participation rate was 68%. ALICE households were 29%, just above the state average. Nine percent of the county’s households were in poverty.
More state and local data is available through the interactive dashboards on UnitedForALICE.org/Virginia.
