Honolulu Reporter

In 2022, Honolulu County ranked second lowest per capita recipient of government transfers in Hawaii, with residents receiving $10,759 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 Honolulu County received $10.7 billion in government transfers, which accounted for 16.6% of total county income.

Comparatively, across all counties in Hawaii, government transfer payments totaled $16.2 billion, making up 18.2% of the state residents’ total income, with an average of $11,236 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 Honolulu County at the time, Social Security transfers totaled $3.6 billion, amounting to $3,623 per capita, or 33.7% of total government transfers. Medicare transfers accounted for $2.3 billion ($2,283 per capita), representing 21.2% of the total. Medicaid contributed $2.1 billion ($2,073 per capita), making up 19.3% of total transfers. Income maintenance programs, including assistance such as SNAP or TANF, added another $1.4 billion ($1,401 per capita), or 13% of the total.

With 19.6% of the population aged 65 and older, Honolulu County has a significant demand for programs like Social Security and Medicare. Total per capita income excluding government transfers in Honolulu County was $54,177, 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 a decrease of 22.4% in per capita government transfers, from $13,743 to $10,759 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 Honolulu County, reliance on government transfers has similarly increased from 4% (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	State Rank (Per Capita Transfers)	Per Capita Transfers ($)	Dependency on Transfers (%)	% Population 65+	Social Security Transfers ($)	Medicare Transfers ($)	Medicaid Transfers ($)	Income Maintenance Transfers ($)
Hawaii County	1	$13,412	27.11%	23.79%	$906,201,000	$595,007,000	$551,728,000	$466,722,000
Kauai County	2	$12,656	22.32%	22.45%	$317,872,000	$203,148,000	$232,079,000	$109,994,000
Honolulu County	3	$10,759	16.57%	19.64%	$3,606,951,000	$2,272,869,000	$2,064,369,000	$1,394,514,000
Maui + Kalawao County	4	$10,755	17.81%	0%	$635,016,000	$406,800,000	$346,239,000	$229,674,000