A new report from the Federal Reserve Bank of New York reveals a sharp rise in the number of American households struggling to afford food, a trend that is likely dragging down consumer confidence even as broader economic numbers look stable.
The report, released Wednesday, updates a 2020 study on how the COVID-19 pandemic affected household finances. Using fresh data from the New York Fed’s Survey of Consumer Expectations, researchers found that food insecurity has worsened significantly since May and June of 2020. More families are skipping meals, dipping into savings to pay bills, relying on food donations, or turning to federal nutrition programs like SNAP.
“We find a remarkable increase in food insecurity, particularly among lower-educated and lower-income households and households with young children,” the researchers wrote.
These same groups also expressed growing pessimism about their financial futures. The report suggests that this rising struggle with food costs may help explain why consumer sentiment remains near record lows, even though overall economic data has shown resilience.
A Tale of Two Economies
The findings highlight what economists call a “K-shaped” recovery, where different income groups experience the economy in very different ways. Higher-income households have benefited from strong stock market gains, rising home values, and lower mortgage payments from refinancing.
In contrast, lower-income families have faced ongoing pressure from higher living costs, post-pandemic inflation, and the end of emergency aid programs that provided extra support during the crisis.
“The greater financial strain due to the high cost of living, combined with the expiration of pandemic-era aid (such as expanded SNAP benefits), have led to renewed concerns about food insecurity among those at the bottom of the K-shape,” the researchers noted.
Key Statistics
According to the February 2026 survey:
- 10% of households said they did not have enough food to eat, up from 4% in June 2020.
- 15.8% reported receiving food donations, compared to 10.6% in 2020.
- 17.9% were using SNAP (food stamps), up from 10.6%.
- More than one-third (36.8%) said they had used savings to cover regular expenses, a big jump from 21.8% six years earlier.
The data was collected before recent geopolitical events in the Middle East triggered higher gas prices, which are expected to add even more pressure on household budgets.
What It Means
While income and wealth gaps have existed in the U.S. for decades, they have widened in recent years. For many lower-income families — especially those with children — the rising cost of groceries and other essentials has turned everyday life into a financial challenge.
The New York Fed’s findings serve as a warning that despite positive headlines about the overall economy, a significant portion of Americans continues to face real hardship at the dinner table.
