Honolulu Reporter

In 2022, Income Maintenance transfers in Honolulu County totaled $1.39 billion, amounting to $1,401 per capita, or 13% of total government transfers, according to information from the Economic Innovation Group.

Among all government transfer programs, Income Maintenance was the smallest contributor in the county. Social Security was the largest contributor, totaling $3.61 billion, equating to $3,623 per capita and making up 33.7% of total transfers.

Comparatively, Income Maintenance transfers across Hawaii amounted to $2.2 billion, ranking lowest among all transfer types within the state. This translates to an average of $1,528 per capita, or 13.6% of total government transfers. Including all transfer types, government transfer payments totaled $16.18 billion, accounting for 18.2% of residents’ total income, with an average of $11,236 per resident.

Medicare was the second largest contributor in Honolulu County in 2022, accounting for $2.27 billion, averaging $2,283 per capita, representing 21.2% of transfers. Medicaid transfers provided another $2.06 billion, averaging $2,073 per capita and comprising 19.3% of government support, making them the third largest contributors.

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 19.6% of the population aged 65 and older, Honolulu County has a significant demand for programs like Social Security and Medicare. Despite this aid, the total per capita income in Honolulu County, excluding government transfers was $54,177, which is noticeably below the county's total income of $64,936, emphasizing the role of government transfers in overall income.

When comparing 2022 to the previous year, Honolulu County saw an increase in its Income Maintenance transfer dependency by 0.1%, reflecting both rising transfer amounts and stagnating or insufficient other sources of income.

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 Honolulu County, reliance on government transfers has similarly increased from 4.1% (or $1,387 per capita) in 1970 to 16.6% (or $10,759 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	Rank	Dependency on Transfers (%)	% Population 65+	Social Security Transfers (%)	Medicare Transfers (%)	Medicaid Transfers (%)	Income Maintenance Transfers (%)	Per Capita Transfers ($)
Honolulu County	1	16.6%	19.6%	5.6%	3.5%	3.2%	2.2%	$10,759
Hawaii County	2	27.1%	23.8%	8.9%	5.8%	5.4%	4.6%	$13,412
Maui + Kalawao County	3	17.8%	0%	6.4%	4.1%	3.5%	2.3%	$10,755
Kauai County	4	22.3%	22.5%	7.6%	4.9%	5.5%	2.6%	$12,656