ALICE is your neighbor, the barista taking your coffee order, a teacher at your child’s school, an administrative assistant—or it could even be you.
ALICE stands for Asset Limited, Income Constrained, Employed. It describes households that earn above the Federal Poverty Level but still struggle to afford basic, everyday necessities. These are individuals and families who work hard, often full time, yet remain one unexpected expense away from financial crisis.
The ALICE research and initiative began with United Way of Northern New Jersey in 2009 and now spans more than two-thirds of the United States. This article provides an overview of ALICE and a snapshot of what ALICE looks like in Escambia and Santa Rosa counties.
ALICE households span all races, ages, ethnicities, and abilities, though households of color are disproportionately ALICE. These households often include workers whose wages cannot keep up with the rising cost of goods and services. Many are made up of individuals working two or more jobs who still cannot pay their bills. ALICE households frequently include family members who need care and assistance, making it harder for caregivers to find adequate work. As a result, these households often live paycheck to paycheck and are forced to make impossible choices between essentials.
Methodology
United for ALICE uses data from the U.S. Census and other government agencies to ensure a comprehensive and accurate picture of financial hardship. Every two years, representatives from each state’s Research Advisory Committee review and evaluate aspects of the methodology to ensure accuracy and relevance.
Household Survival Budget
A key measurement used in this research is the ALICE Household Survival Budget. This budget reflects the bare minimum cost of living for households to meet basic needs such as housing, childcare, food, transportation, healthcare, technology, and taxes. It does not include savings for emergencies or future goals like college or retirement, highlighting just how tight household budgets truly are.
ALICE Threshold
Another important measure is the ALICE Threshold, which represents the minimum income required for household survival. Households below the ALICE Threshold include both ALICE households and those earning below the Federal Poverty Level.
ALICE Snapshot
Nationally, 42% of households live below the ALICE Threshold. Of these households, 29% are ALICE households, while 13% live below the Federal Poverty Level.
In Florida, households struggle at an even higher rate. A total of 47% of households earn below the ALICE Threshold, with 34% classified as ALICE households and 13% living below the Federal Poverty Level.
Escambia County Snapshot
In Escambia County, 28% of households are ALICE, while 12% live below the Federal Poverty Level. Altogether, 40% of households struggle to afford basic needs.
The Household Survival Budget in Escambia County illustrates the financial pressure many families face. A single adult requires $33,948 annually to meet basic needs, while a single adult age 65 or older requires $56,856. For a household with two adults and two children, the survival budget is $71,928, which increases to $84,369 when childcare costs are included.
Housing costs further compound these challenges. According to Zumper, a rental platform, the median rent in Pensacola for December is $1,699 a month.
Santa Rosa County Snapshot
In Santa Rosa County, 27% of households are ALICE, and 8% live below the Federal Poverty Level. In total, 35% of households struggle to afford basic needs.
The Household Survival Budget in Santa Rosa County reflects similar financial strain. A single adult needs $34,752 annually to cover basic expenses, while a single adult age 65 or older requires $57,876. For two adults with two children, the survival budget is $75,552, increasing to $88,212 when childcare is needed.
Housing costs are also significant in Santa Rosa County. According to Zumper, the median rent in Milton for December is $1,850 a month.
ALICE and UWWF
United Way of West Florida (UWWF) provides services and programs that support all household makeups, including those struggling to make ends meet. Through 211 Northwest Florida, individuals and families can access resources and referrals tailored to their needs. The 988 Lifeline is available to anyone going through a crisis or simply looking for someone to talk to.
Additional support includes the Florida Veteran Support Line, which serves active-duty service members, veterans, and their family members who need resources and assistance. AARP provides support to any unpaid caregiver, helping them navigate the challenges of caregiving. Volunteer Income Tax Assistance (VITA) offers free tax preparation during tax season to households with an income below $67,000. UWWF’s Community Investment grants support local nonprofits working directly with ALICE households, strengthening the network of services that help families achieve stability.
UWWF is here to help
ALICE households are not defined by a lack of effort, but by a lack of margin, and that is where UWWF makes a critical difference. By funding local partners, expanding access to essential services, and connecting individuals and families to support through programs like 211, 988, VITA, and community investments, UWWF helps close the gap between working and truly getting by. Together with donors, volunteers, and community partners, UWWF is committed to ensuring that hardworking families have the stability, resources, and opportunities they need not just to survive, but to move toward lasting financial security.