In 2022, Passaic County ranked eighth highest per capita recipient of government transfers in New Jersey, with residents receiving $12,169 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 Passaic County received $6.3 billion in government transfers, which accounted for 21.3% of total county income.
Comparatively, across all counties in New Jersey, government transfer payments totaled $102.9 billion, making up 14.4% of the state residents’ total income, with an average of $11,114 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 Passaic County at the time, Social Security transfers totaled $1.6 billion, amounting to $3,200 per capita, or 26.3% of total government transfers. Medicare transfers accounted for $1.4 billion ($2,673 per capita), representing 22% of the total. Medicaid contributed $1.7 billion ($3,377 per capita), making up 27.8% of total transfers. Income maintenance programs, including assistance such as SNAP or TANF, added another $994.2 million ($1,935 per capita), or 15.9% of the total.
With 16% of the population aged 65 and older, Passaic County has a significant demand for programs like Social Security and Medicare. Total per capita income excluding government transfers in Passaic County was $44,898, far below the county’s total income of $57,067, emphasizing the role of government transfers in overall income.
When comparing 2022 to the previous year, Passaic County saw a decrease of 25.6% in per capita government transfers, from $16,223 to $12,169 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 Passaic County, reliance on government transfers has similarly increased from 8.27% (or $2,309 per capita) in 1970 to 21.3% (or $12,169 per capita) in 2022, reflecting broader national trends.
According to the Economic Innovation Group’s analysis, these trends are not merely short-term responses to economic pressures but rather reflect a profound, long-term transformation in how government support is integrated into American life. The study illustrates that structural shifts—from rising healthcare expenses and demographic changes to stagnant wages—have significantly increased dependency on government transfers.
| County | State Rank (Per Capita Transfers) | Per Capita Transfers ($) | Dependency on Transfers (%) | % Population 65+ | Social Security Transfers ($) | Medicare Transfers ($) | Medicaid Transfers ($) | Income Maintenance Transfers ($) |
|---|---|---|---|---|---|---|---|---|
| Cape May County | 1 | $16,805 | 23.47% | 29.55% | $619,485,000 | $425,338,000 | $298,684,000 | $111,944,000 |
| Cumberland County | 2 | $14,279 | 30.52% | 15.98% | $570,906,000 | $511,011,000 | $585,139,000 | $338,095,000 |
| Salem County | 3 | $14,102 | 26% | 19.25% | $311,652,000 | $212,721,000 | $214,627,000 | $103,199,000 |
| Atlantic County | 4 | $13,548 | 24.23% | 19.84% | $1,213,878,000 | $907,567,000 | $814,033,000 | $440,741,000 |
| Ocean County | 5 | $13,433 | 22.64% | 22.55% | $3,424,656,000 | $2,639,014,000 | $1,326,115,000 | $629,369,000 |
| Camden County | 6 | $13,093 | 21.65% | 16.54% | $1,979,929,000 | $1,575,127,000 | $1,837,026,000 | $875,507,000 |
| Essex County | 7 | $12,171 | 16% | 14.34% | $2,316,635,000 | $2,016,698,000 | $3,439,916,000 | $1,741,015,000 |
| Passaic County | 8 | $12,169 | 21.32% | 15.96% | $1,644,350,000 | $1,374,001,000 | $1,735,695,000 | $994,210,000 |
| Warren County | 9 | $11,639 | 18.5% | 19.66% | $511,839,000 | $365,823,000 | $199,433,000 | $92,910,000 |
| Monmouth County | 10 | $11,460 | 12.14% | 19.11% | $2,896,439,000 | $2,101,793,000 | $1,201,880,000 | $453,530,000 |
| Mercer County | 11 | $11,172 | 14% | 16.13% | $1,398,094,000 | $1,005,952,000 | $951,468,000 | $527,924,000 |
| Burlington County | 12 | $11,049 | 15.68% | 18.31% | $2,008,410,000 | $1,344,332,000 | $782,209,000 | $375,852,000 |
| Sussex County | 13 | $10,833 | 15.11% | 18.87% | $683,521,000 | $455,834,000 | $193,524,000 | $82,033,000 |
| Gloucester County | 14 | $10,743 | 17.22% | 16.81% | $1,256,936,000 | $883,577,000 | $486,588,000 | $278,725,000 |
| Hunterdon County | 15 | $10,283 | 10% | 20.9% | $631,442,000 | $386,834,000 | $137,151,000 | $47,693,000 |
| Union County | 16 | $10,020 | 13% | 15.19% | $1,781,419,000 | $1,252,190,000 | $1,443,498,000 | $659,663,000 |
| Hudson County | 17 | $9,947 | 13.68% | 12.83% | $1,370,714,000 | $1,401,623,000 | $2,370,348,000 | $1,169,017,000 |
| Bergen County | 18 | $9,880 | 10.17% | 18.26% | $3,679,725,000 | $2,717,683,000 | $1,410,448,000 | $595,599,000 |
| Middlesex County | 19 | $9,390 | 13.23% | 16.2% | $2,885,277,000 | $2,113,069,000 | $1,451,588,000 | $706,075,000 |
| Morris County | 20 | $9,303 | 8.34% | 18.22% | $2,078,016,000 | $1,374,746,000 | $612,386,000 | $211,918,000 |
| Somerset County | 21 | $8,613 | 7.78% | 17% | $1,296,996,000 | $764,380,000 | $419,732,000 | $181,463,000 |
