The number of people living in poverty rose by 1.3 million to 35.9 million people, or 12.5 percent of the population, up from 12.1 percent in 2002.
The rise was more dramatic for children. There were 12.9 million living in poverty last year, or 17.6 percent of the under-18 population. That was an increase of about 800,000 from 2002, when 16.7 percent of all children were in poverty.
Democratic presidential nominee Sen. John Kerry pounced on the figures, saying the report "confirms the failure of President Bush's policies for all Americans."
Based on the census numbers, real income has fallen by about $1,500 per household over the past three years, and the ranks of the uninsured have risen by more than 5 million, Kerry said. "While George Bush tries to convince America's families that we're turning the corner, slogans and empty rhetoric can't hide the real story," Kerry said in a statement. "Today's census numbers are more evidence of just how much is at stake."