Red Wing– The cost of household necessities in Minnesota has risen faster than inflation for
more than 15 years, leaving many households vulnerable to the growing affordability crisis,
according to new data from United For ALICE, released in partnership with United Way
Goodhue, Wabasha & Pierce Counties and United Way organizations across the state.
The latest State of ALICE report for Minnesota highlights the growing financial strains on the
demographic known as ALICE® (Asset Limited, Income Constrained, Employed). With income
above the Federal Poverty Level but unable to afford basic expenses, 579,571 Minnesota
households were ALICE in 2024. When combined with households in poverty, 35% of all
households in Minnesota fell below the ALICE Threshold of Financial Survival.
“Behind these numbers are families making impossible choices every day between groceries
and utilities, childcare and rent,” said United Ways of Minnesota Executive Director Beni
Westgor. “The ALICE data helps guide our work with partners across Minnesota, so we can
respond to immediate needs and help build stronger paths to stability.”
The report includes data from the ALICE Essentials Index, which tracks the rising costs
of only six basics families need to live and work: housing, childcare, food, transportation, health
care and technology. Between 2007 and 2024, the ALICE Essentials Index
for Minnesota increased 64%, compared with 52% for the broader Consumer Price Index
(CPI), which reports inflation across more than 200 categories of goods and services.
The crux of the struggle for ALICE families is the gap between wages and expenses. In 2024, a
family of four in Goodhue County needed $83,160 just to cover the essentials -almost 3 times
the Federal Poverty Level of $31,200.
“We hear from ALICE individuals on a regular basis, and they are working hard to support their
families. ALICE presents us with an opportunity to focus conversations and partnerships around
how we can help ALICE individuals and families move from a place of surviving to thriving,” said
United Way Executive Director Nicolle Mechelke.
The State of ALICE in Minnesota also reveals that in 2024:
11% of households in Goodhue County were in poverty in 2024; another 21% were
ALICE.
● ALICE households were found in every major industry statewide, with the highest levels
of hardship in food service and accommodation 39%, retail trade 26%, and health care
22%.
● Poverty rates in Minnesota have remained relatively flat since 2010, while the number of
ALICE households has started leveling.
● Minimum-wage workers in Minnesota saw hourly pay rise to $10.85, up from $10.59 in
2023. Yet for one full-time adult worker with one school-age child, that wage still was not
enough to support the ALICE Household Survival Budget, the minimum cost of basics, in
nearly half of all counties across Minnesota.
● Minnesota ranked 6th in financial hardship among all 50 states plus the District of
Columbia, with one of the nation’s lowest percentages of households struggling to make
ends meet.
More state and local data is available through the interactive dashboards on UnitedForALICE.org/Minnesota.
About United Ways of Minnesota
Since 2002, United Ways of Minnesota United Ways of Minnesota is a collective of United Ways
spanning all corners of the state. We exist to build capacity and support the work of local United
Ways in Minnesota. We offer professional development and training, collective community
impact and advocacy work. Local United Ways are the local conveners and collaborators,
building stronger communities through innovation and partnership. ALICE in Minnesota was
introduced in 2024.
About United For ALICE
United For ALICE is a U.S. research organization driving innovation, research and action to
improve life across the country for ALICE® (Asset Limited, Income Constrained, Employed) and
for all. Through the development of the ALICE measurements, a comprehensive, unbiased
picture of financial hardship has emerged. Harnessing this data and research on the mismatch
between low-paying jobs and the cost of survival, ALICE partners convene, advocate and
collaborate on solutions that promote financial stability at local, state and national levels. This
grassroots ALICE movement, led by United Way of Northern New Jersey, has spread to 41
states and the District of Columbia and includes United Ways, corporations, nonprofits and
foundations in Alabama, Alaska, Arkansas, Colorado, Connecticut, Delaware, Florida, Georgia,
Hawai‘i, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Michigan,
Minnesota, Mississippi, Missouri, Nebraska, New Jersey, New Mexico, New York, North
Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina,
South Dakota, Tennessee, Texas, Virginia, Washington, Washington, D.C., West Virginia and
Wisconsin; we are United For ALICE. For more information, visit: UnitedForALICE.org.
