Sussex County saw 17.6% increase in transfer dependency percentage since 1970 as of 2022

John Lettieri, President and CEO of Economic Innovation Group | Official Website

By Sussex Review

Apr 4, 2025

In 2022, government transfers made up 26.4% of total income in Sussex County, Delaware—a 17.6% surge from 8.8% in 1970 and a 1.2% increase from 2012’s 25.2%. This marks the smallest increase among all Delaware counties over the past decade, according to information from the Economic Innovation Group.

On a per capita basis, this translates to $17,121 per resident in 2022, up from $12,607 in 2012 and $1,924 in 1970, ranking Sussex County as the first fastest-growing in per capita government transfers among Delaware counties over the past 10 years.

Meanwhile, Sussex County had the second largest share of income derived from government transfers, making it one of the largest dependent counties in the state.

Among Delaware's counties, Kent County saw the largest increase in transfer dependency over the past 10 years, surging 3.9% from 22.6% in 2012 to 26.5% in 2022, and up 20.5 percentage points from just 6% in 1970. In dollar terms, government transfers per capita in Kent County jumped from $9,856 in 2012 to $13,543 in 2022, contrasting to the $1,399 recorded in 1970.

For comparison, the statewide average was 21.9% in 2022, showing a higher dependency than the national average of 17.6%. On a per capita level, this translates to $13,866 per resident, compared to $11,542 nationwide.

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 Sussex County, reliance on government transfers was just 8.8% (or $1,924 per capita in inflation-adjusted 2022 dollars) in 1970. This has since increased to a total of 17.6% since 1970. This shift is largely influenced by an aging population increased healthcare costs, and economic transformations that have reshaped income sources across the U.S.

In 2022, the primary government transfer programs in Sussex County included:

Social Security: $6,775 per capita (39.6% of total transfers)

Medicare: $4,436 per capita (25.9% of total transfers)

Medicaid: $3,301 per capita (19.3% of total transfers)

Income Maintenance Programs: $1,162 per capita (6.8% of total transfers)

With 30.2% of the population aged 65 and older, Sussex County has a significant demand for Social Security and Medicare. However, counties with higher poverty rates also show elevated Medicaid and income maintenance participation.

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.

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.

Government Transfer Trends by County in Delaware, 2022