United Way urges action as more households fall below the ALICE threshold
CHATTANOOGA, Tenn. (June 2025) — A new report from United Way of Greater Chattanooga and its research partner United for ALICE revealed that the cost of living for a Hamilton County family of four with two children in child care rose by $8,200 in just one year. At the same time, poverty rose by 2%. Even though more residents joined the workforce, it wasn’t enough to close the growing gap between wages and the cost of basic needs like housing, child care, food, and transportation.
The latest ALICE data from 2023 provides a clearer picture of financial hardship across the Greater Chattanooga region.
Statewide Insights
ALICE stands for Asset Limited, Income Constrained, Employed. These are households earning more than the Federal Poverty Level but not enough to afford the basics. ALICE families often work multiple jobs and earn too much to qualify for assistance, but too little to make ends meet. Traditional federal poverty measures overlook ALICE families entirely.
In the most recent year of available data, 14% of Tennessee households were officially in poverty. But that number more than doubles when ALICE is included. Combined, 44% of Tennessee households were living below the ALICE threshold. In Georgia, that number is 45% of households.
“When we underestimate how many families are struggling, we underestimate what it truly takes to build a thriving community,” said Lesley Scearce, President and CEO of United Way of Greater Chattanooga. “ALICE represents our teachers, healthcare workers, delivery drivers, and caregivers—people holding up the local economy while struggling to support their own households.”
In both Tennessee and Georgia, many of the most common jobs don’t pay enough to cover basic needs. In Tennessee, 32% of workers in the 20 most common occupations lived in households that couldn’t afford essentials. In Georgia, that number was slightly higher at 35%.
Hamilton County Snapshot
In 2023, 10,961 households with children lived below the ALICE threshold, a 15% increase from the previous year. While the percentage of ALICE households overall remained steady, poverty rose by 2%, meaning more families are falling deeper into crisis.
North Georgia Snapshot
Catoosa County: 2% decrease in households below the ALICE threshold, with improvements in income and workforce participation.
Walker County: 6% decrease in ALICE households, but poverty increased by 3%, showing mixed progress.
Dade County: Little change, but financial hardship remained high.
Across Greater Chattanooga, families are struggling to find stability. A single unexpected expense can spiral into deeper hardship.
Community Action
ALICE represents our neighbors, coworkers, and friends. United Way of Greater Chattanooga is urging the community to take action to support local families.
“When businesses, nonprofits, and local governments work together, we can make a real difference for working families,” said Scearce. “When families thrive, so does the economy. Thriving families raise thriving kids—the future of our workforce. And a strong workforce is the foundation of a strong economy. We can’t afford to leave hardworking families behind.”
Employers: Join the upcoming United for Working Families Summit to support financial resilience for local employees.
Community Members: Advocate for family-friendly policies and vital resources like Head Start and SNAP by sending a message to U.S. representatives and senators.
Donors: Support emergency assistance and long-term solutions through United Way’s 211 helpline and community programs. Learn more and explore the latest ALICE data at unitedwaycha.org/alice.