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Minnesota State Wire

Saturday, March 1, 2025

Minnesota: Income Maintenance transfers accounted for 1.6% of income in 2022

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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, Income Maintenance transfers in Minnesota totaled $6.3 billion, amounting to $1,103 per capita, or 9.7% of total government transfers in the state, according to information from the Economic Innovation Group.

Among all government transfer programs, Income Maintenance was the smallest contributor. Social Security was the largest, totaling $21.52 billion, equating to $3,765 per capita and making up 33.1% of total transfers.

Medicaid was the second largest contributor in Minnesota in 2022, accounting for $17.17 billion, averaging $3,003 per capita, and represented 26.4% of transfers in the state. Medicare transfers provided another $14.26 billion, averaging $2,495 per capita and comprising 21.9% of government support, making them the third largest contributors.

Statewide, including all transfer types, government transfer payments totaled $65.06 billion, and accounted for 16.5% of residents’ total income, with an average of $11,379 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 17.3% of the population aged 65 and older, Minnesota has a significant demand for programs like Social Security and Medicare. The total per capita income in Minnesota, excluding government transfers was $57,460.8, which is noticeably below the county's total income of $68,840, emphasizing the role of government transfers in overall income.

When comparing 2022 to the previous year, Minnesota saw a decrease in its Income Maintenance transfer dependency by 0.3%.

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 Minnesota, reliance on government transfers has similarly increased from 8.2% (or $1,983 per capita) in 1970 to 16.5% (or $11,379 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.

Breakdown of Government Transfers by Program in Minnesota, 2022

Social Security (33.1% or $21.52 billion)Medicaid (26.4% or $17.17 billion)Medicare (21.9% or $14.26 billion)Income Maintenance (9.7% or $6.3 billion)All Other Government Transfers (8.9% or $5.79 billion)

2022 Minnesota County Rankings and Government Transfer Dependency Metrics
CountyRankDependency on Transfers (%)% Population 65+Social Security Transfers (%)Medicare Transfers (%)Medicaid Transfers (%)Income Maintenance Transfers (%)Per Capita Transfers ($)
Hennepin County112.1%15.7%3.8%2.3%3.8%1.3%$10,860
Ramsey County219.4%15.9%5.3%3.5%6.6%2.6%$12,662
Dakota County313.5%15.9%5.1%3.2%3%1.1%$9,466
Anoka County416%15.4%5.7%3.5%3.9%1.5%$9,665
St. Louis County526%21.4%8.3%5.3%7.4%2.5%$14,720
Washington County611.3%16.6%4.8%2.9%1.8%0.7%$8,999
Stearns County719.2%16.2%5.9%4.2%4%2.1%$11,387
Olmsted County814.8%16.8%5.4%3.2%3.6%1.5%$10,026
Wright County913.5%13.7%5%3.4%2.7%1%$8,412
Scott County109.7%12.5%3.7%2.3%1.9%0.8%$7,279
Crow Wing County1128%24.5%10.3%7%5.4%2.2%$14,795
Sherburne County1215.5%12.4%5.4%3.8%2.9%1.4%$8,833
Otter Tail County1325.3%25.4%9.1%6.3%5.2%1.9%$14,347
Carver County148.6%14.4%3.6%2.2%1.5%0.5%$7,522
Itasca County1531.8%25.7%11%7.2%7.8%2.8%$16,408
Clay County1621.4%14.1%5.9%4%6.5%2.7%$10,923
Blue Earth County1719.2%15%6.2%4.3%4.4%2.1%$10,159
Rice County1819.2%16.5%7.1%4.4%4.4%1.8%$10,275
Beltrami County1929.5%17.5%7.3%5.5%10.6%3.3%$14,831
Chisago County2018.4%17.1%6.8%4.6%3.8%1.2%$10,790
Goodhue County2119.3%20.7%7.3%5.1%4%1.3%$12,352
Kandiyohi County2222.2%20.3%7%5%5.6%2.4%$13,217
Winona County2320%18.9%7%4.3%5%1.8%$11,521
Douglas County2422.2%24.3%8.4%5.6%4.4%1.5%$13,898
Cass County2531.1%27%10.9%6.5%7.6%3.1%$17,400
Mower County2625%18.5%7.4%5.6%7.1%2.9%$13,443
Becker County2726.3%22.8%8.3%6.2%7.2%2.1%$15,100
Carlton County2827.8%18.6%8.6%6.5%7.6%2.1%$13,981
Morrison County2927.3%21.2%8.2%6.7%6.6%2.3%$14,060
Isanti County3020.8%17%7.7%4.4%4.4%1.7%$10,914
Polk County3125.1%19.4%6.8%5.2%8.2%2.6%$14,768
McLeod County3221.4%20.1%7.6%5.6%4.9%1.5%$12,345
Benton County3319.6%14.3%6.1%3.8%5.3%2.2%$10,643
Steele County3421.5%19.1%7.6%5.1%5.1%2.1%$11,778
Freeborn County3525.5%23.3%8.9%6.1%5.8%2.7%$14,106
Pine County3632%22.6%10.6%7%7.8%3.1%$14,479
Mille Lacs County3728.8%18.3%8.9%6.9%7.4%2.4%$14,810
Todd County3825.6%23.3%7.5%6.6%6.8%2.3%$14,281
Brown County3922.7%22.1%7.5%6.2%5.5%1.6%$14,130
Nicollet County4017.8%17.9%6.3%4.2%3.8%1.6%$10,319
Hubbard County4125.2%26.7%9.2%6.1%5.1%2.3%$14,791
Lyon County4221.1%17.6%6.2%4.6%6.3%2.2%$12,693
Le Sueur County4317.7%18.6%6.3%4.1%4.3%1.3%$10,768
Martin County4425.1%24.4%8.2%6.5%6.4%2.3%$15,784
Meeker County4523.8%21.2%8.2%5.7%5.6%1.9%$13,033
Wabasha County4622.4%23.6%7.9%6.4%4.5%1.3%$13,597
Aitkin County4735.6%34.1%11.7%9.9%8%2.5%$17,748
Fillmore County4822.9%22.1%8%5.8%5.6%1.7%$12,751
Wadena County4936.7%20.3%9.9%8.4%10.8%3.7%$17,125
Houston County5021.6%23.3%8.4%4.6%5%1.4%$12,969
Nobles County5119.7%17%5.7%4.3%5.9%2.4%$11,078
Waseca County5223.2%19.3%7.9%5.8%5.5%2%$12,707
Kanabec County5329.1%21.8%9.8%6.9%7.1%2.5%$14,485
Renville County5423.4%21.8%6.9%6.3%6.2%2%$15,050
Redwood County5519%21.6%5.6%5.1%5.1%1.5%$14,103
Koochiching County5634.5%28.4%11.7%7.5%9.1%2.8%$18,288
Faribault County5727.4%23.8%8.7%6.6%7.4%2.6%$15,269
Dodge County5816.5%15.9%5.9%3.9%3.8%1.4%$9,759
Pennington County5920.3%19.1%5.9%4.7%5.6%1.7%$13,432
Sibley County6020.7%19.6%6.7%5.2%5.3%1.7%$12,392
Roseau County6119.5%19.4%6.8%4.5%4.8%1.7%$11,942
Lake County6230.9%27.8%10.9%7.5%7%1.8%$16,406
Chippewa County6325.5%21.8%7.3%6.2%7.6%2.3%$14,320
Cottonwood County6424.2%22.9%7.5%6.4%6.1%2.3%$15,260
Pope County6522.7%25.3%7.4%6.1%5.4%1.7%$14,474
Yellow Medicine County6624.6%21.7%7.3%6.1%7%1.7%$16,277
Swift County6722%23.6%6%5.1%7%2%$14,711
Watonwan County6822.1%20.8%6.5%5.1%6.2%2%$12,597
Clearwater County6929.5%21.1%7.9%6.8%8.8%2.9%$15,759
Marshall County7019.4%23.3%5.9%4.8%5.3%1.4%$14,718
Jackson County7120.6%23.6%6.8%4.9%5.4%1.8%$13,089
Pipestone County7219.9%21%5.7%5.3%5.7%1.9%$13,414
Murray County7322.7%26.8%7.4%6.9%5%1.6%$15,381
Rock County7421.3%20.5%7%5.6%5.1%1.7%$12,984
Lac qui Parle County7524.9%27.8%7.2%6.9%7.2%1.7%$17,206
Stevens County7617.6%17.7%5.2%4.6%4.5%1.6%$11,446
Norman County7727.3%21.6%7.5%6.1%9%2.4%$16,332
Wilkin County7821.2%19.9%6%4.5%7.3%1.8%$14,932
Grant County7924.8%23.5%8.2%6.8%5.6%2%$15,375
Big Stone County8025.5%26.6%7.2%6.7%7.5%1.8%$17,907
Mahnomen County8134.8%17.7%5.7%5.3%17.4%4%$16,903
Cook County8225%30.9%10.8%6.5%4.3%1.5%$14,197
Lincoln County8323.7%24.4%7.3%5.7%7.2%1.6%$14,361
Lake of the Woods County8428.5%26.1%8.9%8.1%6.8%1.9%$16,996
Kittson County8522%25.9%7.4%5.2%6%1.7%$15,419
Traverse County8621.2%25.7%6.1%5.3%6.2%2.1%$18,142
Red Lake County8720%23.1%5.9%5.5%5.2%1.7%$14,685

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