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Monday, March 31, 2025

2022: How government transfer reliance in Virginia has changed since 1970

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

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

In 2022, government transfers accounted for 15.7% of total income in Virginia, a 10.1% rise from 5.6% in 1970, and a 3.2% increase over 2012’s 12.5%, according to information from the Economic Innovation Group. On a per capita basis, this equates to $10,811 per resident in 2022, up from $7,529 in 2012 and $1,357 in 1970.

Among Virginia’s counties, Wise + Norton County saw the largest increase in transfer dependency over the past 10 years, surging 11% from 34.1% in 2012 to 45.1% in 2022, and up 31.1% from just 14% in 1970. In dollar terms, government transfers per capita in Wise + Norton County jumped from $12,826 in 2012 to $18,549 in 2022, a stark contrast to the $2,347 recorded in 1970.

Lee County and Russell County followed with the second-largest increase in transfer dependency, increasing 10.6% from 2012.

Additionally, Dickenson County had the highest percentage of income derived from government transfers, at 48.7% in 2022, making it the county with the highest overall transfer dependency. Lee County and Wise + Norton County followed closely behind, with transfer dependency rates of 47% and 45.1% in 2022, respectively.

Compared to 1970, Dickenson County increased by 32.6%, while Lee County and Wise + Norton County have increased by 23.7% and 31.1%, respectively, showing sustained reliance on government transfers. Residents in Dickenson County received an average of $19,994 in transfers per capita, with Lee County and Wise + Norton County close behind at $18,105 and $18,549, respectively.

For comparison, the statewide average was 15.7% in 2022, showing a lower dependency than the national average of 17.6%. On a per capita level, this translates to $10,811 per resident in 2022, 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 Virginia, reliance on government transfers was just 5.6% (or $1,357 per capita in inflation-adjusted 2022 dollars) in 1970. This has since increased to 15.7% (or $10,811 per capita) in 2022, reflecting a total increase of 10.1% since 1970. This shift is largely influenced by increased healthcare costs, and economic transformations that have reshaped income sources across the U.S.

In 2022, the primary government transfer programs in Virginia included:

  • Social Security: $3,598 (33.3% of total transfers)
  • Medicare: $2,335 (21.6% of total transfers)
  • Medicaid: $2,251 (20.8% of total transfers)
  • Income Maintenance Programs: $1,077 (10% of total transfers)

With 17% of the population aged 65 and older, Virginia has a significant demand for programs like 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. In Virginia, reliance on government transfers has similarly increased from 5.6% (or $1,357 per capita) in 1970 to 15.7% (or $10,811 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.

Government Transfer Trends by County in Virginia, 2022
CountyDependency on Transfers (%)Change Since 2012Change Since 1970Per Capita Amount (2022)Per Capita Change Since 2012Per Capita Change Since 1970
Accomack County29.1%3.5%17.5%$15,776$4,721$13,903
Albemarle + Charlottesville County10.5%0.9%4.4%$9,527$2,844$8,159
Alleghany + Covington County38%9.6%26.8%$17,584$5,600$15,585
Amelia County25.8%3.8%16.2%$13,668$4,107$12,174
Amherst County32.4%7.4%24.4%$14,496$4,917$13,236
Appomattox County30.8%4.7%21.2%$14,139$4,023$12,430
Arlington County5.4%1.4%2.7%$6,090$1,985$4,872
Augusta County23.4%2.9%17.2%$12,368$3,124$11,093
Bath County22.9%3.4%10.6%$17,143$5,690$15,104
Bedford County23.6%4.5%15%$12,940$3,787$11,361
Bland County35.5%7.8%23%$15,123$4,845$13,490
Botetourt County21.5%4.6%12%$12,819$3,999$11,077
Brunswick County41.1%7.8%32.5%$16,903$5,594$15,601
Buchanan County44.7%9.8%34.1%$20,234$6,458$18,611
Buckingham County36.5%9.3%25.4%$13,823$5,384$12,426
Campbell + Lynchburg County32.6%5.9%24.8%$14,798$3,725$13,171
Caroline County22.6%4.1%15.1%$11,660$3,444$10,354
Carroll + Galax County40.1%6.1%28.1%$17,957$5,677$16,246
Charles City County25.5%4.8%17.9%$14,560$5,146$13,427
Charlotte County37.5%5.4%28.3%$16,976$5,662$15,577
Chesterfield County15.9%3.7%11.6%$10,184$3,342$9,059
Clarke County14.8%3.6%8%$11,532$4,247$9,946
Craig County28.8%4.3%17.1%$13,628$3,788$11,767
Culpeper County19.4%4.4%11.5%$10,828$3,379$9,310
Cumberland County28.9%2.4%18%$13,408$3,460$11,795
Dickenson County48.7%9.8%32.6%$19,994$6,578$17,500
Dinwiddie County37.9%8.7%29.7%$17,388$4,645$15,931
Essex County32%6.8%21.5%$16,528$5,525$14,885
Fairfax County7.6%1.9%5.7%$7,726$2,675$7,025
Fauquier County11.5%2.9%6.3%$9,494$3,072$8,200
Floyd County28.7%5%18%$14,012$4,662$12,282
Fluvanna County20.3%3.6%11.3%$10,816$3,247$9,327
Franklin County26.4%3.2%18.1%$13,880$4,055$12,506
Frederick + Winchester County16.5%2.7%9.2%$10,260$3,160$8,761
Giles County31.3%4.8%20.3%$15,487$4,627$13,610
Gloucester County22.2%5.6%15.1%$12,743$4,149$11,113
Goochland County9.8%0.6%2.9%$11,441$2,241$10,160
Grayson County38.1%3.8%25.3%$14,843$3,178$13,115
Greene County20.6%4.5%11.3%$10,623$3,436$9,274
Greensville + Emporia County39%6.5%27.5%$15,317$4,819$13,499
Halifax County37.7%7.1%28.5%$16,787$5,512$15,307
Hanover County14.2%2.4%9.4%$10,262$3,234$9,118
Henrico County13.5%2.4%10.3%$10,380$3,270$9,522
Henry + Martinsville County38.4%5.9%32.3%$18,234$5,501$17,052
Highland County29%4.4%15.1%$14,651$3,472$12,665
Isle of Wight County19.5%4.4%13.4%$12,467$3,550$11,221
James City + Williamsburg County17.4%3.8%13.6%$13,205$3,920$12,322
King and Queen County26.1%3.6%16.9%$14,439$4,813$12,963
King George County14.8%4.5%11.3%$9,471$3,470$8,491
King William County20.5%4.1%13.5%$11,196$3,291$9,778
Lancaster County25.6%1.4%13.5%$18,546$4,476$16,304
Lee County47%10.6%23.7%$18,105$6,220$15,346
Loudoun County5.7%1.6%1.9%$5,534$2,080$4,426
Louisa County23.6%4.7%14.3%$11,963$3,538$10,394
Lunenburg County35.7%5.6%25.6%$13,916$3,794$12,383
Madison County20.4%3.7%11.3%$11,540$3,310$9,947
Mathews County25.3%5.6%11.7%$17,198$5,728$14,645
Mecklenburg County37.4%6.4%28.8%$17,040$5,110$15,727
Middlesex County29.7%5.6%14.1%$17,882$5,517$15,351
Montgomery + Radford County18.3%1.6%11.5%$8,323$2,241$7,173
Nelson County26.9%5.4%15.1%$17,399$6,406$15,645
New Kent County10.9%1%3.7%$11,160$3,770$9,750
Northampton County30.9%4.3%18.2%$19,870$7,147$17,929
Northumberland County30.7%4.6%17.3%$18,848$5,509$16,632
Nottoway County37.3%4%27.5%$16,770$4,941$15,004
Orange County22.9%4.2%15.2%$13,473$3,789$11,776
Page County28.2%2.9%17.7%$13,840$3,962$11,998
Patrick County39.5%6.8%30.2%$15,903$4,687$14,428
Pittsylvania + Danville County37.7%6.8%28.7%$16,975$5,531$15,427
Powhatan County14.5%1.7%7.2%$9,860$2,968$8,684
Prince Edward County35.2%7.4%26.5%$13,925$5,021$12,504
Prince George + Hopewell County28.5%7.9%23.8%$11,315$2,915$10,356
Prince William County12%4%9.6%$7,645$2,901$6,993
Pulaski County30.4%3.3%22%$14,611$3,507$13,106
Rappahannock County14.8%2%6.2%$11,764$3,238$10,179
Richmond County30%4.4%19.1%$12,814$3,487$10,981
Roanoke + Salem County21.3%5%16.1%$12,598$3,574$11,415
Rockbridge County26.7%3.7%17.7%$12,931$3,424$11,419
Rockingham + Harrisonburg County18.5%1.6%12.3%$9,496$2,739$8,283
Russell County43%10.6%30%$17,290$5,372$15,457
Scott County41.8%8.2%30.9%$16,552$4,782$14,969
Shenandoah County22.3%1.9%13.2%$12,657$3,642$10,963
Smyth County37%6.4%26.4%$16,428$4,972$14,758
Southampton + Franklin County31.3%6.3%22.2%$15,739$5,140$14,225
Spotsylvania + Fredericksburg County16.4%4.1%10.4%$10,267$3,589$8,796
Stafford County13.9%4.8%10.3%$9,052$3,516$8,186
Surry County28.3%6.7%18.8%$14,837$5,545$13,424
Sussex County38.2%9.6%29.6%$14,413$4,912$13,072
Tazewell County39.3%10.3%26.6%$17,291$5,314$15,078
Warren County19.9%4.2%11.3%$11,183$3,537$9,348
Washington + Bristol County32.1%8.8%21.3%$14,979$4,156$13,181
Westmoreland County29.3%5.2%17.8%$14,822$4,158$12,990
Wise + Norton County45.1%11%31.1%$18,549$5,723$16,202
Wythe County34.2%4.6%23.2%$15,223$4,376$13,414
York + Poquoson County14.3%3.3%11%$9,728$2,783$8,866
Alexandria (Independent City)7.4%2.2%4.3%$7,739$2,581$6,567
Chesapeake (Independent City)18.3%5%13.1%$10,688$3,507$9,512
Hampton (Independent City)27.6%6.8%22.9%$13,406$4,006$12,273
Newport News (Independent City)25.5%6.8%20.3%$11,968$3,498$10,719
Norfolk (Independent City)25.4%6.7%19.9%$12,186$3,963$10,765
Portsmouth (Independent City)31.3%7.1%23.9%$14,382$4,003$12,834
Richmond (Independent City)17.5%1.2%9%$12,417$2,781$10,262
Roanoke (Independent City)30.2%6.4%19%$15,349$4,181$12,724
Suffolk (Independent City)21.1%5.6%13.3%$12,831$4,128$11,235
Virginia Beach (Independent City)16.3%4.1%13.7%$10,750$3,533$9,983

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