Peace Garden News

In 2022, North Dakota ranked fourth least government transfer-dependent state in the U.S., receiving 14.1% of its total income from programs such as Social Security, Medicare, Medicaid, and income maintenance, according to information from the Economic Innovation Group.

In total, residents in North Dakota received $7.72 billion, equivalent to $9,913 per capita.

For comparison, the average across all states in the U.S. was $75.42 billion in total, or $11,542 per capita.

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 North Dakota at the time, Social Security transfers made up $2.62 billion, a 33.9% share of the total. Medicare transfers accounted for $1.82 billion (23.6%), while Medicaid contributed $1.59 billion (20.5%). Income maintenance programs, including assistance such as SNAP or TANF, added another $599.7 million, or 7.8% of the total.

With 16.6% of the population aged 65 and older, North Dakota has a significant demand for programs like Social Security and Medicare. The total income excluding government transfers in North Dakota was $60,447 per capita, below the state's total income of $70,360 per capita, emphasizing the role of government transfers in overall income.

When comparing 2022 to the previous year, North Dakota saw a decrease in its government transfer dependency by 3%.

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 North Dakota, reliance on government transfers has similarly increased from 9.4% (or $1,876 per capita) in 1970 to 14.1% (or $9,913 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.

State	Rank	Dependency on Transfers (%)	% Population 65+	Social Security Transfers (%)	Medicare Transfers (%)	Medicaid Transfers (%)	Income Maintenance Transfers (%)	Per Capita Transfers ($)
West Virginia	1	28.9%	21.1%	33.7%	23.9%	19.8%	10.9%	$14,450
New Mexico	2	26.5%	19.3%	27.7%	18.2%	29%	15.7%	$13,842
Mississippi	3	25.8%	17.2%	33.6%	26.1%	16.8%	12.1%	$11,984
Kentucky	4	24.8%	17.4%	30.9%	23.2%	26.3%	10.1%	$12,890
Louisiana	5	23.9%	16.8%	27.2%	23.7%	26.7%	12.8%	$13,019
Arkansas	6	23.7%	17.7%	32.7%	23.5%	23.5%	9.6%	$12,493
Alabama	7	23.4%	17.9%	35%	25.7%	12.5%	12.4%	$11,924
Maine	8	22.7%	22.4%	33.6%	23.7%	20.5%	11.9%	$13,779
South Carolina	9	22.4%	18.9%	36.6%	25.8%	12.3%	11%	$12,028
Delaware	10	21.9%	20.6%	33.8%	23.3%	23.3%	9.2%	$13,866
Arizona	11	20.7%	18.9%	31.6%	22.1%	24.4%	8.9%	$12,093
Michigan	12	20.7%	18.6%	37.4%	25.7%	18.1%	10.7%	$11,834
Oklahoma	13	20.7%	16.3%	32%	24.3%	17.2%	12.4%	$11,654
Alaska	14	20.6%	13.9%	19.4%	13.4%	24%	11.1%	$14,153
Ohio	15	20.2%	18.3%	32.5%	25.9%	22.4%	10.8%	$11,680
Oregon	16	20.1%	19.1%	32.7%	21.4%	26.1%	9.8%	$12,514
Pennsylvania	17	20.1%	19.5%	33.4%	24.5%	25.4%	9.3%	$12,986
Vermont	18	20%	21.4%	36.8%	20.8%	24.1%	8.7%	$12,623
Indiana	19	19.8%	16.8%	34.3%	24.3%	22.1%	10.9%	$11,545
Missouri	20	19.8%	17.9%	34.7%	26%	20%	8.6%	$11,453
North Carolina	21	19.8%	17.2%	33.9%	24.3%	15.7%	11.7%	$11,491
Rhode Island	22	19.6%	18.8%	32.7%	23%	24.4%	10.2%	$12,447
Tennessee	23	19.2%	17.1%	35.3%	25.7%	15.6%	11.5%	$11,209
Florida	24	18.9%	21.4%	34.1%	28.9%	12.4%	9.4%	$12,269
Montana	25	18.3%	20%	36.2%	22.6%	19.3%	7%	$11,163
Hawaii	26	18.2%	18.1%	33.8%	21.5%	19.7%	13.6%	$11,236
Wisconsin	27	18.1%	18.6%	38.2%	24.8%	18%	9.5%	$11,137
Idaho	28	18%	16.9%	35.9%	22.7%	17.5%	11.5%	$10,187
Iowa	29	17.9%	18.1%	37%	24.7%	20.3%	8.4%	$10,773
New York	30	17.9%	18%	26.8%	22.2%	32.1%	12.8%	$13,463
Georgia	31	17.6%	15%	32.6%	24.7%	13.3%	14.5%	$9,964
Kansas	32	16.7%	17%	37.7%	25.9%	15.9%	9.1%	$10,119
Minnesota	33	16.5%	17.3%	33.1%	21.9%	26.4%	9.7%	$11,379
Nevada	34	16.5%	17%	32.8%	26%	15.5%	12.3%	$10,264
Illinois	35	16%	17%	32.1%	24.4%	20.1%	14.9%	$10,848
Nebraska	36	16%	16.8%	34.1%	25%	17.6%	8.3%	$10,262
South Dakota	37	15.7%	18%	35.8%	24.5%	13.4%	12.4%	$10,713
Virginia	38	15.7%	17%	33.3%	21.6%	20.8%	10%	$10,811
California	39	15.5%	15.7%	24.6%	22.5%	26.7%	14.6%	$11,927
Texas	40	15.5%	13.4%	28.5%	24.3%	19.9%	13.3%	$9,720
Maryland	41	15.3%	16.7%	31.7%	24.5%	23.5%	10.7%	$10,724
New Hampshire	42	15.1%	20%	42.2%	25.3%	16.4%	5.6%	$11,127
Massachusetts	43	14.9%	18%	28.7%	24%	25.1%	15.4%	$12,629
Wyoming	44	14.8%	18.6%	37.6%	23.5%	11.5%	6.5%	$10,831
New Jersey	45	14.4%	17.3%	33.6%	25.1%	21.3%	10.3%	$11,114
Connecticut	46	14.3%	18.6%	34%	25.4%	24%	9%	$11,828
Washington	47	14.2%	16.7%	33.8%	20.8%	21.4%	9.8%	$10,697
North Dakota	48	14.1%	16.6%	33.9%	23.6%	20.5%	7.8%	$9,913
District of Columbia	49	13.8%	13%	17.1%	16.5%	44%	15.8%	$13,278
Colorado	50	13.2%	15.6%	30.8%	21.4%	21.3%	13.3%	$10,012
Utah	51	12.7%	11.9%	33.7%	21.9%	17.4%	11.6%	$7,551