In 2022, New London County ranked third highest per capita recipient of government transfers in Connecticut, with residents receiving $12,498 per capita from programs such as Social Security, Medicare, Medicaid, and income maintenance, according to information from the Economic Innovation Group.
In total, residents in New London County received $3.4 billion in government transfers, which accounted for 19.3% of total county income.
Comparatively, across all counties in Connecticut, government transfer payments totaled $42.9 billion, making up 14.3% of the state residents’ total income, with an average of $11,828 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).
Breaking down the contributions in New London County at the time, Social Security transfers totaled $1.2 billion, amounting to $4,512 per capita, or 36.1% of total government transfers. Medicare transfers accounted for $898.4 million ($3,344 per capita), representing 26.8% of the total. Medicaid contributed $655.5 million ($2,440 per capita), making up 19.5% of total transfers. Income maintenance programs, including assistance such as SNAP or TANF, added another $276.5 million ($1,029 per capita), or 8.2% of the total.
With 19.6% of the population aged 65 and older, New London County has a significant demand for programs like Social Security and Medicare. Total per capita income excluding government transfers in New London County was $52,349, noticeably below the county’s total income of $64,847, emphasizing the role of government transfers in overall income.
When comparing 2022 to the previous year, New London County saw a decrease of 17.9% in per capita government transfers, from $15,238 to $12,498 per capita.
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 8.21% (or $2,022 per capita in inflation-adjusted 2022 dollars) in 1970 to 17.63% (or $11,542 per capita) in 2022. In New London County, reliance on government transfers has similarly increased from 6.59% (or $1,686 per capita) in 1970 to 19.3% (or $12,498 per capita) in 2022, reflecting broader national trends.
According to the Economic Innovation Group’s analysis, these trends are not merely short-term responses to economic pressures but rather reflect a profound, long-term transformation in how government support is integrated into American life. The study illustrates that structural shifts—from rising healthcare expenses and demographic changes to stagnant wages—have significantly increased dependency on government transfers.
| County | State Rank (Per Capita Transfers) | Per Capita Transfers ($) | Dependency on Transfers (%) | % Population 65+ | Social Security Transfers ($) | Medicare Transfers ($) | Medicaid Transfers ($) | Income Maintenance Transfers ($) |
|---|---|---|---|---|---|---|---|---|
| New Haven County | 1 | $12,926 | 19.94% | 18.56% | $3,456,605,000 | $2,775,675,000 | $3,003,607,000 | $1,141,555,000 |
| Hartford County | 2 | $12,589 | 17.9% | 18% | $3,613,736,000 | $2,705,106,000 | $3,086,891,000 | $1,147,660,000 |
| New London County | 3 | $12,498 | 19.27% | 19.56% | $1,212,392,000 | $898,411,000 | $655,518,000 | $276,530,000 |
| Windham County | 4 | $12,386 | 23.15% | 19.79% | $494,968,000 | $376,814,000 | $322,647,000 | $143,550,000 |
| Litchfield County | 5 | $11,441 | 14.31% | 22.81% | $949,593,000 | $667,852,000 | $215,814,000 | $131,329,000 |
| Middlesex County | 6 | $11,121 | 14.91% | 22.16% | $822,553,000 | $569,518,000 | $212,305,000 | $101,323,000 |
| Fairfield County | 7 | $10,469 | 8.36% | 17.43% | $3,428,421,000 | $2,489,756,000 | $2,613,278,000 | $826,293,000 |
| Tolland County | 8 | $9,371 | 15.24% | 18% | $619,634,000 | $425,234,000 | $171,893,000 | $81,434,000 |
