CARY, NC — A new update to The State of ALICE report in North Carolina finds that 1,816,053 households — 41% of all households in the state — were unable to afford the basic cost of living in 2024. Combining households in poverty with ALICE households (Asset Limited, Income Constrained, Employed), the report shows that millions of working families are one emergency away from crisis. This is because many essential jobs do not pay enough; for example, 53% of Cooks and 51% of Cashiers live in households below the ALICE Threshold. “ALICE is not a single story — it’s our neighbors, coworkers, and friends. This report gives us the data to act. When we invest in housing, childcare, living wages, and targeted tax support, we strengthen families and the entire North Carolina economy,” says Sally Gordon, Director of Mission Advancement at United Way of North Carolina.
ALICE individual Tatiana Johnson knows firsthand what it’s like to work hard and still not make enough to make ends meet. As a waitress and single mother, she knows what it’s like to be one crisis away from financial burden. Last year her three-year-old son was hospitalized for a week, and she had no choice but to miss work. She quickly fell behind on her rent and utilities and had a massive hospital bill on top of it. “What was once manageable soon felt overwhelming,” said Ms. Johnson. Unsure where to turn, she called NC 211, which allowed her to get connected with local resources through United Way of Wayne County. There, she met with her community case worker and began to address her situation. It’s taken time, but with financial assistance and adjustments to her budget and money habits, she is on her way to rising out of ALICE.
Key Findings
- Scale of hardship: North Carolina had 4,452,562 total households in 2024; 13% (570,996) were below the Federal Poverty Level and 28% (1,245,057) were ALICE households.
- Cost versus earnings gap: The ALICE Household Survival Budget in North Carolina was $31,740 for a single adult and $79,596 for a family of four, far above the Federal Poverty Level and often above combined wages for common occupations. “In North Carolina, the ALICE Household Survival Budget was $31,740 for a single adult and $79,596 for a family of four.”
- Who is most affected: Hardship is concentrated among Black households (55% below the Threshold), American Indian/Alaska Native households (54%), Hispanic households (49%), single-parent families (73% of single-female-headed households), young households under 25 (69%), and households age 65+ (50%).
- Workforce vulnerability: Many essential jobs do not pay enough; for example, 53% of Cooks and 51% of Cashiers live in households below the ALICE Threshold.
What This Means for North Carolina
- The ALICE findings show that economic growth alone is not reaching a large share of working families. When nearly half of renters and a large share of homeowners below the Threshold are housing cost burdened, families must choose between basics — food, medicine, transportation, or housing — and have little ability to absorb shocks. The result is greater strain on health, education, and community stability, and lost economic potential across the state.
Recommended Actions to Alleviate the ALICE Burden
Policy and Government
- Expand targeted tax supports and consider a state Earned Income Tax Credit to complement the federal EITC and reach families who currently fall above EITC cutoffs but below the ALICE Threshold.
- Invest in affordable housing and child care to reduce the largest recurring costs that push households into instability.
Employers
- Raise wages and stabilize schedules for hourly workers; adopt living-wage policies and predictable scheduling to reduce income volatility.
- Provide benefits that matter — paid leave, employer-supported child care options, and access to financial counseling.
- Community Organizations and Nonprofits
- Target outreach and services using ALICE mapping tools to reach neighborhoods and demographic groups with the highest need.
- Scale proven programs such as Volunteer Income Tax Assistance (VITA) to increase EITC uptake and connect families to benefits.
Philanthropy and Funders
- Support cross-sector pilots that combine housing, child care, workforce training, and financial coaching to test integrated solutions that raise household stability.
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About the Report
The State of ALICE in North Carolina: 2026 Update on Financial Hardship is produced by United For ALICE in partnership with United Way of North Carolina. The report uses county-level Household Survival Budgets and American Community Survey data to measure how many households cannot afford the basics in their local communities. For interactive maps, county reports, and tools to explore ALICE by district, visit UnitedForALICE.org/North-Carolina.
About United Way of North Carolina
United Way mobilizes communities to action so all can thrive. For almost 50 years, United Way of North Carolina (UWNC) has been a statewide organization, partnering with 47 local United Ways to co-create solutions to people’s most pressing challenges. We take a comprehensive approach, listening and responding to statewide needs, including but not limited to, strengthening local resilience and advancing health, youth opportunity, and financial security in our state. UWNC bridges and mobilizes people, local United Ways, and resources so individuals, families, and communities thrive in North Carolina. We are committed to four core areas of work: Member services, NC 211, Disaster Response, and Advocacy.