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. Medicaid was the largest, totaling $2.49 billion, equating to $3,397 per capita and making up 24% of total transfers.
Social Security was the second largest contributor in Alaska in 2022, accounting for $2.01 billion, averaging $2,746 per capita, and represented 19.4% of transfers in the state. Medicare transfers provided another $1.4 billion, averaging $1,903 per capita and comprising 13.4% of government support, making them the third largest contributors.
Statewide, including all transfer types, government transfer payments totaled $10.38 billion, and accounted for 20.6% of residents’ total income, with an average of $14,153 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 13.9% of the population aged 65 and older, Alaska has a demand for programs like Social Security and Medicare. The total per capita income in Alaska, excluding government transfers was $54,482.5, which is noticeably below the county's total income of $68,635, emphasizing the role of government transfers in overall income.
When comparing 2022 to the previous year, Alaska 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 Alaska, reliance on government transfers has similarly increased from 3.7% (or $1,267 per capita) in 1970 to 20.6% (or $14,153 per capita) in 2022, reflecting broader national trends.
According to the Economic Innovation Group’s analysis, these trends are not merely short-term responses to economic pressures but rather reflect a profound, long-term transformation in how government support is integrated into American life. The study illustrates that structural shifts—from rising healthcare expenses and demographic changes to stagnant wages—have significantly increased dependency on government transfers.
| County | Rank | Dependency on Transfers (%) | % Population 65+ | Social Security Transfers (%) | Medicare Transfers (%) | Medicaid Transfers (%) | Income Maintenance Transfers (%) | Per Capita Transfers ($) |
|---|---|---|---|---|---|---|---|---|
| Anchorage Municipality | 1 | 18.8% | 12.9% | 3.6% | 2.3% | 4.7% | 2% | $14,211 |
| Matanuska-Susitna Borough | 2 | 20.1% | 13.7% | 4.8% | 3.3% | 1.6% | 2% | $11,653 |
| Fairbanks North Star Borough | 3 | 19.8% | 12.7% | 3.5% | 2% | 5% | 1.8% | $13,388 |
| Kenai Peninsula Borough | 4 | 25.4% | 20% | 6.7% | 5% | 4.4% | 2.2% | $15,546 |
| Juneau City and Borough | 5 | 15.4% | 16.2% | 3.5% | 2.8% | 2.7% | 1.3% | $12,125 |
| Bethel Census Area | 6 | 37.9% | 8.6% | 2.8% | 2% | 17.1% | 9.1% | $18,453 |
| Ketchikan Gateway Borough | 7 | 22.3% | 18.4% | 4.9% | 3.8% | 5.8% | 2.2% | $16,250 |
| Nome Census Area | 8 | 33.1% | 8.8% | 2.7% | 3.2% | 15.4% | 6.5% | $20,529 |
| Kodiak Island Borough | 9 | 19.5% | 14% | 3.6% | 3.2% | 4.5% | 1.7% | $13,937 |
| Northwest Arctic Borough | 10 | 39.7% | 9.2% | 2.8% | 3.3% | 20.8% | 6.8% | $21,940 |
| Kusilvak Census Area | 11 | 52.7% | 7% | 3% | 3.2% | 21.5% | 16% | $19,331 |
| Yukon-Koyukuk Census Area | 12 | 41.8% | 18% | 4.2% | 3.2% | 21.6% | 7.1% | $27,183 |
| Sitka City and Borough | 13 | 17.8% | 18.3% | 4.1% | 4.2% | 3.2% | 1.2% | $14,256 |
| Southeast Fairbanks Census Area | 14 | 26.7% | 15.7% | 5.4% | 3.6% | 6.7% | 2.9% | $16,143 |
| North Slope Borough | 15 | 12.1% | 7.9% | 1.7% | 2.2% | 3.5% | 1.6% | $9,058 |
| Prince of Wales-Hyder Census Area | 16 | 30.5% | 20.7% | 6.4% | 5.4% | 7.8% | 2.9% | $16,210 |
| Chugach Census Area | 17 | 16% | 16.6% | 3.7% | 1.8% | 3.4% | 1.4% | $11,312 |
| Dillingham Census Area | 18 | 26.5% | 11.9% | 3.3% | 4.2% | 8% | 5.4% | $16,165 |
| Petersburg Borough | 19 | 27.6% | 21.9% | 6.4% | 6.7% | 6.4% | 1.8% | $20,214 |
| Denali Borough | 20 | 27.2% | 13.5% | 3% | 1.6% | 15.8% | 2.3% | $32,870 |
| Wrangell City and Borough | 21 | 35.3% | 28.8% | 8.3% | 8.6% | 8.4% | 1.9% | $21,540 |
| Haines Borough | 22 | 25.3% | 25.7% | 6% | 5.7% | 5.5% | 1.8% | $21,659 |
| Hoonah-Angoon Census Area | 23 | 28.9% | 26.2% | 5.7% | 4.4% | 10% | 2.3% | $19,323 |
| Copper River Census Area | 24 | 23.8% | 20.1% | 7.1% | 1.8% | 4.8% | 2.9% | $14,302 |
| Aleutians West Census Area | 25 | 7.9% | 7.2% | 1.2% | 1% | 2.6% | 0.9% | $5,483 |
| Lake and Peninsula Borough | 26 | 27.3% | 13.9% | 3.1% | 4.1% | 10.1% | 5.1% | $18,355 |
| Aleutians East Borough | 27 | 7% | 9.2% | 1.6% | 1% | 1.4% | 1.1% | $4,487 |
| Skagway Municipality | 28 | 18.4% | 19.5% | 3.7% | 3% | 2.6% | 0.8% | $13,898 |
| Bristol Bay Borough | 29 | 9.6% | 18.2% | 2% | 1.2% | 2.8% | 1.1% | $15,040 |
| Yakutat City and Borough | 30 | 22.9% | 20.9% | 4.4% | 3.2% | 7.4% | 2% | $14,644 |
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