WASHINGTON – Two years after the end of a recession, median household incomes in America halted their two-year decline in 2003, but the poverty rate continued to edge up and incomes fell markedly among immigrants, according to a new report from the federal Census Bureau.

The report also showed that the number of Americans without health insurance increased by 1.4 million in 2003, increasing slightly the percentage of the population lacking coverage and adding fuel to the political debate over health-care reform. President Bush promised to “do more” to make health insurance more affordable, while Senator Kerry blamed him for the decline.

The number of people living in poverty increased by 1.3 million to 35.9 million in 2003, and the national poverty rate rose to 12.5% from 12.1%, the report found. Child poverty increased – to 17.6% from 16.7% – and was five time higher in fatherless families than among married-couples.

In New York City, the poverty rate remained unchanged at 19% – the 25th highest rate among 68 cities. The highest urban poverty rate was recorded in Cleveland, while Virginia Beach had the lowest.

New York City’s median household income, $39,937, ranked a modest 37th out of 68 cities. The national median income was $43,564. San Jose led the country with a median household income of $70,240. Households in Buffalo, Detroit, Miami, and Cleveland had the lowest incomes, all well under $30,000.

Taken alone, Manhattan’s median incomes of $47,415 would have ranked 9th among cities, wedged above Honolulu and below San Diego.

The poverty rate in the Bronx of 28.7% was exceeded only by two counties in Texas. The Bronx’s poverty rate had declined slightly from 29.8% in 2002, but its third-place ranking was unchanged. Households in the Bronx earned a median income of $27,331.

Measured income inequality did not change in 2003, although the share of national wealth flowing to the poorest 20 percent of Americans decreased marginally, from 3.5% to 3.4%.

Americans without health insurance increased to 15.6% of the population, the census bureau said. The percentage of uninsured children did not change, as many children are covered by government programs.

Democrats were quick to blame the increases in poverty on Republican policies.

“Today confirms the failure of President Bush’s policies for all Americans,” said Senator Kerry. “Under George Bush’s watch, America’s families are falling further behind.”

Rep. Charles Rangel, a Democrat from New York, attributed the growth in poverty in part to what he said was a decline of $1.7 billion in annual funding for programs aimed at helping the poor since Mr. Bush took office.

“Many poverty programs aren’t even keeping pace with inflation, nor the increasing number of poor Americans. The Republicans refuse to allow poor people even a chance to make a better life for their kids,” he said.

But an author of the Census Bureau report said increases in poverty were not surprising even two years after the economic downturn that lasted from March 2001 to November 2001.

“It’s probably related to the recession of 2001. Both poverty and income are lagging indicators. Poverty keeps going up after a recession comes down for a period. If you look at the historical record, you will see that pattern,” said the chief of the housing and household economic statistics division at the Census Bureau, Daniel Weinberg.

The recession partially reversed an ongoing decline in poverty rates that had fallen continuously from 15.1% in 1993 to 11.3% in 2000. Median income had peaked in 1999, was unchanged in 2000, and declined over the next two years by a cumulative 3.3%.

Democrats also suggested that the Census Bureau’s decision to release multiple reports on poverty and health insurance on a single day early in the election year was an effort to shield the president from bad news.

“After 30 years of releasing the poverty data by itself in the third week of September, they’re trying to lump, dump and run,” said Rep. Carolyn Maloney, a Democrat of New York, who called the Census Bureau an “appendage” of the Bush campaign.

But the Census director, Louis Kin cannon, a political appointee, said the reports were released together to allow national numbers, which are normally released two months from now, to be more easily compared with city and county figures.

The chairman of the Senate Health, Education, Labor and Pensions Committee, Senator Gregg of New Hampshire, defended the Republican economic record, saying the report is based on 2003 figures and “does not include the full effect of the president’s tax relief.” He said it did not account for 1.5 million new jobs created in the past 11 months, nor the “cost lowering effects of the president’s Medicare reform plan.”

The income and poverty estimates in the report were based solely on monetary income before taxes, and do not include the value of noncash benefits such as food stamps, Medicare, Medicaid, public housing, and other benefits.

The poverty line for an individual was $9,573 in 2003, and $18,979 for a family of four.

Hispanics were the only racial group to experience a real decline in median incomes – 2.6% from 2002 to 2003. Blacks had the lowest median income ($30,000), and Asians had the highest ($55,500).

While the incomes of native-born Americans did not change, foreign-born households had a decline of 3.5% in household earnings. Those who were not citizens faced an even steeper decline of 5.6%, and a poverty rate of 21.7%

About 45 million people, were without health insurance coverage in 2003, up from 2002.

Advocates across the political spectrum seized on the health insurance numbers to make a case for policy reform, ranging from universal health care to tort reform.

Speaking to a rally in Las Cruces, N.M., Mr. Bush said, “We have more to do to make quality health care available and affordable.”

He touted his Medicare prescription benefit he signed into law this year, and the creation of medical savings accounts. He also said small employers should be allowed to join together to purchase insurance at the discounts that big companies get in America.

He also repeated his demands for limits on medical malpractice liability lawsuits.

“These frivolous lawsuits are running up the cost of health care and they’re running good docs out of business,” said Mr. Bush, chiding Mr. Kerry for choosing a former plaintiff’s attorney, Senator Edwards, as a running mate.

Mr. Kerry said the president had passed a tax cut that benefited the wealthy rather than doing more for working families.

A spokeswoman for the New York Health Plan Association, a state trade group that represents 31 managed care plans, Leslie Moran, said many businesses in New York are dropping health insurance plans because of rising costs. Premiums are rising due to health care costs as well as government regulations and mandates that require plans to cover expensive procedures such as fertility treatments and chiropractic services, she said. The group has been lobbying Albany lawmakers to craft less generous plans at lower premiums.

“It’s a very delicate balancing act. I don’t think there is a magic silver bullet answer,” she said.