WHATCOM COUNTY, WA (MyBellinghamNow.com) – A new report finds more than a third of Whatcom County households are still struggling to make ends meet.

According to this year’s ALICE report, 38% of households in the county fell below the threshold for survival in 2024.

That was down from 45% the previous year, marking a return to the same rate seen in 2022.

Households classified under ALICE—an acronym for Asset Limited, Income Constrained, Employed—earn more than the Federal Poverty Level, but not enough to afford the basics where they live.

United Way of Whatcom County President and CEO Kristi Birkland says traditional measures of poverty severely undercounts the number of people living under financial strain. It’s calculated using the costs of six basic needs: housing, childcare, food, transportation, health care and technology in specific geographical areas.

“Interestingly, the latest numbers mark a return to ALICE levels from two years ago,” Birkeland said in a news release. “But we need to remember this reflects data from 2024. Based on the current rising costs of gas, groceries, and other essentials, it likely doesn’t feel like there’s been much improvement. We also need to remember that behind all of these numbers are real people and real struggles.”

Whatcom County’s rate of households that sat below the ALICE threshold in 2024 was lower than the state average, which ranked 14th in the country for financial hardship.

This year’s report also found that the cost of basic needs is rising much faster than overall inflation. The ALICE Essential Index, which tracks the costs of each basic need listed earlier, increased by 92% from 2007 to 2024, while the broader Consumer Price Index, which covers over 200 categories of goods and services, rose 52% during that span.