John Lettieri, President and CEO of Economic Innovation Group | Official Website
John Lettieri, President and CEO of Economic Innovation Group | Official Website
These payments—which include Social Security, Medicare, Medicaid, and income maintenance—accounted for 13.9% of all personal income in the county, according to information from the Economic Innovation Group.
This marks a slight increase in the county’s reliance on government transfers compared to 2012, when such payments made up 13.9% of total income. Since then, the share has risen by 0%.
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).
In 2022, government transfers in Chittenden County primarily focused on older adults—such as Social Security transfers, which totaled $654.8 million (39.4% of all transfer income), and Medicare, which accounted for $291.6 million (17.6%)—played a significant role in the county's overall income.
On a per capita basis, Social Security payments rose from $2,958 in 2012 and $678 in 1970 to $3,868 in 2022, reflecting a 30.8% increase over the past decade and a 470.5% shift since 1970.
In the meantime, Medicare transfers climbed from $1,730 in 2012 and $254 in 1970 to $1,722, marking -0.5% and 578% drops, respectively.
In comparison, during 2022, residents aged 65 and older made up 16.9% of the total population, compared to 12.2% in 2012 and 6.9% in 1970.
According to the Economic Innovation Group, total income in Chittenden County excluding public assistance amounted to $60,763 per capita in 2022, compared to $70,571 when government transfers were included.
Breaking down the other contributions in the county, Medicaid transfers made up $403.9 million, a 24.3% share of total income, while income maintenance programs, including assistance such as SNAP or TANF, added another $137.2 million, or 8.3% of the total.
Compared to the previous year, Chittenden County's reliance on government transfers decreased by 2.5%.
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 $2,016 per capita in inflation-adjusted 2022 dollars) in 1970 to 17.6% (or $11,529 per capita) in 2022 nationwide.
According to the Economic Innovation Group’s analysis, these trends are not merely short-term responses to economic pressures but rather reflect a profound, long-term transformation in how government support is integrated into American life. The study illustrates that structural shifts—from rising healthcare expenses and demographic changes to stagnant wages—have significantly increased dependency on government transfers.
| County | State Rank (Per Capita Transfers) | Dependency on Transfers (%) | % Population 65+ | Social Security Transfers (%) | Medicare Transfers (%) | Medicaid Transfers (%) | Income Maintenance Transfers (%) | Per Capita Transfers ($) |
|---|---|---|---|---|---|---|---|---|
| Rutland County | 1 | 32.57% | 24.66% | 29.2% | 16.9% | 39.7% | 7.3% | $19,084 |
| Orleans County | 2 | 29.86% | 23.65% | 30.9% | 22.6% | 26.4% | 10.6% | $15,888 |
| Essex County | 3 | 30.66% | 27.61% | 42.4% | 31.9% | 1.1% | 11.2% | $13,920 |
| Windsor County | 4 | 20.45% | 25.56% | 40% | 28.7% | 14.6% | 7.5% | $13,899 |
| Windham County | 5 | 24.3% | 25.28% | 37.2% | 23.5% | 22.4% | 8.9% | $13,833 |
| Washington County | 6 | 19.77% | 21.68% | 34.8% | 15.8% | 32.6% | 7.2% | $13,686 |
| Bennington County | 7 | 22.6% | 24.62% | 39% | 22.5% | 19.1% | 10.2% | $13,590 |
| Caledonia County | 8 | 26.73% | 22.94% | 35.7% | 26.5% | 17.9% | 10.4% | $13,499 |
| Orange County | 9 | 22.28% | 23.55% | 37.7% | 27.7% | 14.8% | 8.9% | $12,483 |
| Lamoille County | 10 | 17.42% | 18.84% | 36.4% | 20.7% | 22.9% | 9.6% | $11,153 |
| Addison County | 11 | 16.9% | 22.81% | 44.8% | 20.8% | 16.1% | 8% | $10,489 |
| Grand Isle County | 12 | 14.47% | 23.22% | 55.1% | 21.4% | 0.7% | 9.5% | $10,310 |
| Franklin County | 13 | 18% | 17.97% | 36.8% | 18.3% | 20.3% | 12.7% | $10,107 |
| Chittenden County | 14 | 13.9% | 16.9% | 39.4% | 17.6% | 24.3% | 8.3% | $9,808 |
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