Sussex Review

In 2022, Sussex County ranked as the second most government transfer-dependent county in Delaware, with 26.4% of total income coming from programs such as Social Security, Medicare, Medicaid, and income maintenance, according to information from the Economic Innovation Group.

In total, residents in Sussex County received $4.38 billion, equivalent to $17,120 per capita.

For comparison, the average across Delaware was $4.71 billion, 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 Sussex County at the time, Social Security transfers made up $1.73 billion, a 39.6% share of the total. Medicare transfers accounted for $1.14 billion (25.9%), while Medicaid contributed $845 million (19.3%). Income maintenance programs, including assistance such as SNAP or TANF, added another $297.55 million, or 6.8% of the total.

With 30.2% of the population aged 65 and older, Sussex County has a significant demand for programs like Social Security and Medicare. Despite this aid, the total per capita income in Sussex County, excluding government transfers was $47,837, which is far below the county's total income of $64,957, emphasizing the role of government transfers in overall income.

When comparing 2022 to the previous year, Sussex County saw a decrease in its government transfer dependency by 2.3%.

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 Sussex County, reliance on government transfers has similarly increased from virtually none in 1970 to 26.4% (or $17,120 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	State Rank	Dependency on Transfers (%)	% Population 65+	Social Security Transfers (%)	Medicare Transfers (%)	Medicaid Transfers (%)	Income Maintenance Transfers (%)	Per Capita Transfers ($)
Kent County	1	26.5%	18.2%	8.2%	6%	5.3%	2.9%	$13,543
Sussex County	2	26.4%	30.2%	10.4%	6.8%	5.1%	1.8%	$17,120
New Castle County	3	18.9%	17.1%	5.9%	4.1%	5.1%	1.9%	$12,524