John Lettieri, President and CEO of Economic Innovation Group | Official Website
John Lettieri, President and CEO of Economic Innovation Group | Official Website
Among all government transfer programs, Income Maintenance was the smallest contributor in the county. Social Security was the largest contributor, totaling $285.59 million, equating to $4,756 per capita and making up 34.8% of total transfers.
Comparatively, Income Maintenance transfers across Vermont amounted to $713.57 million, ranking lowest among all transfer types within the state. This translates to an average of $1,103 per capita, or 8.7% of total government transfers. Including all transfer types, government transfer payments totaled $8.17 billion, accounting for 20% of residents’ total income, with an average of $12,623 per resident.
Medicaid was the second largest contributor in Washington County in 2022, accounting for $268.12 million, averaging $4,465 per capita, representing 32.6% of transfers. Medicare transfers provided another $129.61 million, averaging $2,158 per capita and comprising 15.8% of government support, making them the third largest contributors.
Government transfer payments are non-repayable funds provided by federal, state, or local governments to support individuals in need. These payments aim to stabilize economic conditions and provide financial support during hardships. Key programs include Social Security transfers (retirement benefits), Medicare transfers (healthcare for seniors), Medicaid transfers (healthcare for low-income individuals), and income maintenance transfers (financial assistance for basic needs).
With 21.7% of the population aged 65 and older, Washington County has a significant demand for programs like Social Security and Medicare. Despite this aid, the total per capita income in Washington County, excluding government transfers was $55,546, which is noticeably below the county's total income of $69,232, emphasizing the role of government transfers in overall income.
When comparing 2022 to the previous year, Washington County saw a decrease in its Income Maintenance transfer dependency by 0.1%.
Government transfers have long been a modest financial safety net, historically comprising only a small fraction of Americans' income. However, since the 1970s—sometimes dubbed the “Great Transfer-mation”—dependency has surged from 8.2% (or $2,022 per capita in inflation-adjusted 2022 dollars) in 1970 to 17.6% (or $11,542 per capita) in 2022 nationwide. In Washington County, reliance on government transfers has similarly increased from 10% (or $2,207 per capita) in 1970 to 19.8% (or $13,686 per capita) in 2022, reflecting broader national trends.
According to the Economic Innovation Group’s analysis, these trends are not merely short-term responses to economic pressures but rather reflect a profound, long-term transformation in how government support is integrated into American life. The study illustrates that structural shifts—from rising healthcare expenses and demographic changes to stagnant wages—have significantly increased dependency on government transfers.
| County | Rank | Dependency on Transfers (%) | % Population 65+ | Social Security Transfers (%) | Medicare Transfers (%) | Medicaid Transfers (%) | Income Maintenance Transfers (%) | Per Capita Transfers ($) |
|---|---|---|---|---|---|---|---|---|
| Chittenden County | 1 | 13.9% | 16.9% | 5.5% | 2.4% | 3.4% | 1.1% | $9,808 |
| Rutland County | 2 | 32.6% | 24.7% | 9.5% | 5.5% | 12.9% | 2.4% | $19,084 |
| Washington County | 3 | 19.8% | 21.7% | 6.9% | 3.1% | 6.4% | 1.4% | $13,686 |
| Windsor County | 4 | 20.5% | 25.6% | 8.2% | 5.9% | 3% | 1.5% | $13,899 |
| Windham County | 5 | 24.3% | 25.3% | 9% | 5.7% | 5.4% | 2.2% | $13,833 |
| Franklin County | 6 | 18.1% | 18% | 6.6% | 3.3% | 3.7% | 2.3% | $10,107 |
| Bennington County | 7 | 22.6% | 24.6% | 8.8% | 5.1% | 4.3% | 2.3% | $13,590 |
| Orleans County | 8 | 29.9% | 23.7% | 9.2% | 6.7% | 7.9% | 3.2% | $15,888 |
| Caledonia County | 9 | 26.7% | 22.9% | 9.5% | 7.1% | 4.8% | 2.8% | $13,499 |
| Addison County | 10 | 16.9% | 22.8% | 7.6% | 3.5% | 2.7% | 1.3% | $10,489 |
| Orange County | 11 | 22.3% | 23.6% | 8.4% | 6.2% | 3.3% | 2% | $12,483 |
| Lamoille County | 12 | 17.4% | 18.8% | 6.3% | 3.6% | 4% | 1.7% | $11,153 |
| Essex County | 13 | 30.7% | 27.6% | 13% | 9.8% | 0.3% | 3.4% | $13,920 |
| Grand Isle County | 14 | 14.5% | 23.2% | 8% | 3.1% | 0.1% | 1.4% | $10,310 |
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