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, Social Security was the largest contributor. Medicare was the second largest, totaling $3.92 billion, equating to $2,811 per capita and making up 25.3% of total transfers.
Medicaid was the third largest contributor in New Hampshire in 2022, accounting for $2.55 billion, averaging $1,828 per capita, and represented 16.4% of transfers in the state. Income Maintenance transfers provided another $868.43 million, averaging $622 per capita and comprising 5.6% of government support, making them the smallest contributors.
Statewide, including all transfer types, government transfer payments totaled $15.52 billion, and accounted for 15.1% of residents’ total income, with an average of $11,127 per resident.
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 20% of the population aged 65 and older, New Hampshire has a significant demand for programs like Social Security and Medicare. The total per capita income in New Hampshire, excluding government transfers was $62,783.5, which is noticeably below the county's total income of $73,910, emphasizing the role of government transfers in overall income.
When comparing 2022 to the previous year, New Hampshire saw an increase in its Social Security transfer dependency by 0.4%, reflecting both rising transfer amounts and stagnating or insufficient other sources of income.
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 New Hampshire, reliance on government transfers has similarly increased from 7.6% (or $1,772 per capita) in 1970 to 15.1% (or $11,127 per capita) in 2022.
According to the Economic Innovation Group’s analysis, these trends are not merely short-term responses to economic pressures but rather reflect a profound, long-term transformation in how government support is integrated into American life. The study illustrates that structural shifts—from rising healthcare expenses and demographic changes to stagnant wages—have significantly increased dependency on government transfers.
| County | Rank | Dependency on Transfers (%) | % Population 65+ | Social Security Transfers (%) | Medicare Transfers (%) | Medicaid Transfers (%) | Income Maintenance Transfers (%) | Per Capita Transfers ($) |
|---|---|---|---|---|---|---|---|---|
| Hillsborough County | 1 | 13.9% | 17.2% | 5.7% | 3.4% | 2.5% | 1% | $9,956 |
| Rockingham County | 2 | 10.9% | 20.3% | 5.2% | 3% | 1.3% | 0.4% | $9,916 |
| Merrimack County | 3 | 18.2% | 19.8% | 7% | 4.2% | 2.8% | 0.9% | $12,469 |
| Strafford County | 4 | 16% | 16.9% | 6.4% | 3.8% | 3% | 1.1% | $9,962 |
| Grafton County | 5 | 16.4% | 23% | 6.8% | 4.1% | 3.2% | 0.9% | $12,331 |
| Cheshire County | 6 | 19.7% | 22.2% | 8.4% | 4.9% | 3.6% | 1.2% | $12,254 |
| Belknap County | 7 | 18.4% | 24.1% | 8.2% | 5.1% | 2.3% | 1% | $13,419 |
| Carroll County | 8 | 20.9% | 30.6% | 9.2% | 5.6% | 3.4% | 0.9% | $14,854 |
| Sullivan County | 9 | 20.5% | 23.5% | 8.3% | 5.4% | 3.8% | 1.2% | $13,114 |
| Coos County | 10 | 33.5% | 25.7% | 12% | 8.5% | 8.1% | 2.1% | $17,581 |
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