John Lettieri, President and CEO of Economic Innovation Group | Official Website
John Lettieri, President and CEO of Economic Innovation Group | Official Website
In total, residents in Illinois received $136.49 billion in government transfers, which accounted for 16% of total state income.
Comparatively, across all U.S. states, government transfer payments totaled $3.85 trillion, making up 17.6% of residents’ total income nationwide, with an average of $11,542 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).
Breaking down the contributions in Illinois at the time, Social Security transfers totaled $43.78 billion, amounting to $3,480 per capita, or 32.1% of total government transfers. Medicare transfers accounted for $33.32 billion ($2,649 per capita), representing 24.4% of the total. Medicaid contributed $27.43 billion ($2,180 per capita), making up 20.1% of total transfers. Income maintenance programs, including assistance such as SNAP or TANF, added another $20.37 billion ($1,619 per capita), or 14.9% of the total.
With 17% of the population aged 65 and older, Illinois has a significant demand for programs like Social Security and Medicare. Despite this aid, the total per capita income excluding government transfers in Illinois was $56,807, noticeably below the state’s total income of $67,655, emphasizing the role of government transfers in overall income.
When comparing 2022 to the previous year, Illinois saw a decrease of 21.8% in per capita government transfers, from $13,877 to $10,848 per capita.
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 8.21% (or $2,022 per capita in inflation-adjusted 2022 dollars) in 1970 to 17.63% (or $11,542 per capita) in 2022. In Illinois, reliance on government transfers has similarly increased from 7% (or $1,894 per capita) in 1970 to 16% (or $10,848 per capita) in 2022, reflecting broader national trends.
According to the Economic Innovation Group’s analysis, these trends are not merely short-term responses to economic pressures but rather reflect a profound, long-term transformation in how government support is integrated into American life. The study illustrates that structural shifts—from rising healthcare expenses and demographic changes to stagnant wages—have significantly increased dependency on government transfers.
| State | Rank | Per Capita Transfers ($) | Dependency on Transfers (%) | % Population 65+ | Social Security Transfers ($) | Medicare Transfers ($) | Medicaid Transfers ($) | Income Maintenance Transfers ($) |
|---|---|---|---|---|---|---|---|---|
| West Virginia | 1 | $14,450 | 28.9% | 21.1% | $8,634,326,000 | $6,134,627,000 | $5,086,574,000 | $2,805,996,000 |
| Alaska | 2 | $14,153 | 20.6% | 13.9% | $2,014,147,000 | $1,396,005,000 | $2,491,957,000 | $1,153,396,000 |
| Delaware | 3 | $13,866 | 21.9% | 20.6% | $4,774,071,000 | $3,288,055,000 | $3,284,202,000 | $1,304,451,000 |
| New Mexico | 4 | $13,842 | 26.5% | 19.3% | $8,093,527,000 | $5,319,412,000 | $8,473,388,000 | $4,590,605,000 |
| Maine | 5 | $13,779 | 22.7% | 22.4% | $6,418,745,000 | $4,533,432,000 | $3,907,324,000 | $2,267,521,000 |
| New York | 6 | $13,463 | 17.9% | 18% | $71,047,966,000 | $58,896,229,000 | $84,980,264,000 | $33,854,167,000 |
| District of Columbia | 7 | $13,278 | 13.8% | 13% | $1,522,786,000 | $1,471,171,000 | $3,924,966,000 | $1,407,284,000 |
| Louisiana | 8 | $13,019 | 23.9% | 16.8% | $16,236,426,000 | $14,137,579,000 | $15,954,237,000 | $7,650,343,000 |
| Pennsylvania | 9 | $12,986 | 20.1% | 19.5% | $56,248,121,000 | $41,212,909,000 | $42,807,144,000 | $15,685,324,000 |
| Kentucky | 10 | $12,890 | 24.8% | 17.4% | $17,945,225,000 | $13,484,355,000 | $15,272,174,000 | $5,866,704,000 |
| Massachusetts | 11 | $12,629 | 14.9% | 18% | $25,273,431,000 | $21,137,589,000 | $22,164,325,000 | $13,586,988,000 |
| Vermont | 12 | $12,623 | 20% | 21.4% | $3,006,621,000 | $1,701,456,000 | $1,967,322,000 | $713,565,000 |
| Oregon | 13 | $12,514 | 20.1% | 19.1% | $17,349,954,000 | $11,349,632,000 | $13,842,540,000 | $5,209,946,000 |
| Arkansas | 14 | $12,493 | 23.7% | 17.7% | $12,460,463,000 | $8,939,327,000 | $8,930,650,000 | $3,651,372,000 |
| Rhode Island | 15 | $12,447 | 19.6% | 18.8% | $4,445,529,000 | $3,134,051,000 | $3,325,004,000 | $1,389,235,000 |
| Florida | 16 | $12,269 | 18.9% | 21.4% | $92,952,163,000 | $78,746,552,000 | $33,907,328,000 | $25,635,465,000 |
| Arizona | 17 | $12,093 | 20.7% | 18.9% | $28,157,560,000 | $19,639,650,000 | $21,712,019,000 | $7,919,770,000 |
| South Carolina | 18 | $12,028 | 22.4% | 18.9% | $23,284,621,000 | $16,391,561,000 | $7,814,453,000 | $6,957,725,000 |
| Mississippi | 19 | $11,984 | 25.8% | 17.2% | $11,828,609,000 | $9,190,720,000 | $5,908,950,000 | $4,268,817,000 |
| California | 20 | $11,927 | 15.5% | 15.7% | $114,591,461,000 | $104,798,134,000 | $124,069,566,000 | $67,953,536,000 |
| Alabama | 21 | $11,924 | 23.4% | 17.9% | $21,188,387,000 | $15,533,632,000 | $7,590,405,000 | $7,490,105,000 |
| Michigan | 22 | $11,834 | 20.7% | 18.6% | $44,457,070,000 | $30,487,745,000 | $21,503,114,000 | $12,683,364,000 |
| Connecticut | 23 | $11,828 | 14.3% | 18.6% | $14,597,902,000 | $10,908,366,000 | $10,281,953,000 | $3,849,674,000 |
| Ohio | 24 | $11,680 | 20.2% | 18.3% | $44,591,207,000 | $35,521,917,000 | $30,737,491,000 | $14,796,635,000 |
| Oklahoma | 25 | $11,654 | 20.7% | 16.3% | $14,981,159,000 | $11,381,629,000 | $8,035,997,000 | $5,793,329,000 |
| Indiana | 26 | $11,545 | 19.8% | 16.8% | $27,040,950,000 | $19,166,150,000 | $17,462,327,000 | $8,610,437,000 |
| North Carolina | 27 | $11,491 | 19.8% | 17.2% | $41,674,984,000 | $29,853,720,000 | $19,348,343,000 | $14,416,861,000 |
| Missouri | 28 | $11,453 | 19.8% | 17.9% | $24,581,220,000 | $18,376,598,000 | $14,161,085,000 | $6,098,791,000 |
| Minnesota | 29 | $11,379 | 16.5% | 17.3% | $21,523,737,000 | $14,263,168,000 | $17,170,187,000 | $6,304,840,000 |
| Hawaii | 30 | $11,236 | 18.2% | 18.1% | $5,466,040,000 | $3,477,824,000 | $3,194,415,000 | $2,200,904,000 |
| Tennessee | 31 | $11,209 | 19.2% | 17.1% | $27,925,639,000 | $20,344,966,000 | $12,303,060,000 | $9,062,647,000 |
| Montana | 32 | $11,163 | 18.3% | 20% | $4,532,531,000 | $2,836,712,000 | $2,424,768,000 | $872,051,000 |
| Wisconsin | 33 | $11,137 | 18.1% | 18.6% | $25,079,785,000 | $16,282,086,000 | $11,801,286,000 | $6,223,499,000 |
| New Hampshire | 34 | $11,127 | 15.1% | 20% | $6,556,416,000 | $3,922,307,000 | $2,550,868,000 | $868,433,000 |
| New Jersey | 35 | $11,114 | 14.4% | 17.3% | $34,560,319,000 | $25,829,313,000 | $21,911,488,000 | $10,616,482,000 |
| Illinois | 36 | $10,848 | 16% | 17% | $43,784,193,000 | $33,324,158,000 | $27,428,176,000 | $20,365,579,000 |
| Wyoming | 37 | $10,831 | 14.8% | 18.6% | $2,370,626,000 | $1,481,659,000 | $725,670,000 | $411,783,000 |
| Virginia | 38 | $10,811 | 15.7% | 17% | $31,242,295,000 | $20,276,257,000 | $19,545,562,000 | $9,353,569,000 |
| Iowa | 39 | $10,773 | 17.9% | 18.1% | $12,769,785,000 | $8,531,809,000 | $6,992,398,000 | $2,902,744,000 |
| Maryland | 40 | $10,724 | 15.3% | 16.7% | $20,986,870,000 | $16,196,059,000 | $15,515,457,000 | $7,087,223,000 |
| South Dakota | 41 | $10,713 | 15.7% | 18% | $3,487,998,000 | $2,392,138,000 | $1,301,219,000 | $1,207,719,000 |
| Washington | 42 | $10,697 | 14.2% | 16.7% | $28,185,284,000 | $17,333,051,000 | $17,836,339,000 | $8,158,342,000 |
| Nevada | 43 | $10,264 | 16.5% | 17% | $10,683,627,000 | $8,480,761,000 | $5,047,768,000 | $3,996,099,000 |
| Nebraska | 44 | $10,262 | 16% | 16.8% | $6,879,197,000 | $5,040,688,000 | $3,562,113,000 | $1,669,152,000 |
| Idaho | 45 | $10,187 | 18% | 16.9% | $7,085,847,000 | $4,475,404,000 | $3,464,767,000 | $2,272,775,000 |
| Kansas | 46 | $10,119 | 16.7% | 17% | $11,203,065,000 | $7,700,328,000 | $4,711,113,000 | $2,701,697,000 |
| Colorado | 47 | $10,012 | 13.2% | 15.6% | $18,022,112,000 | $12,497,691,000 | $12,460,913,000 | $7,754,896,000 |
| Georgia | 48 | $9,964 | 17.6% | 15% | $35,477,812,000 | $26,898,913,000 | $14,408,450,000 | $15,815,508,000 |
| North Dakota | 49 | $9,913 | 14.1% | 16.6% | $2,615,337,000 | $1,823,683,000 | $1,586,443,000 | $599,700,000 |
| Texas | 50 | $9,720 | 15.5% | 13.4% | $83,072,964,000 | $70,952,428,000 | $57,982,451,000 | $38,843,661,000 |
| Utah | 51 | $7,551 | 12.7% | 11.9% | $8,597,890,000 | $5,594,394,000 | $4,452,987,000 | $2,953,291,000 |
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