In 2022, government transfers made up 19.8% of total income in Fairbanks North Star Borough, Alaska—an alarming 17.3% surge from 2.5% in 1970 and a 6.9% increase from 2012’s 12.9%. This marks the 12th smallest increase among all Alaska counties over the past decade, according to information from the Economic Innovation Group.
On a per capita basis, this translates to $13,388 per resident in 2022, up from $8,052 in 2012 and $902 in 1970, ranking Fairbanks North Star Borough as the 20th fastest-growing in per capita government transfers among Alaska counties over the past 10 years.
Meanwhile, Fairbanks North Star Borough had the 10th smallest share of income derived from government transfers, making it one of the smallest dependent counties in the state.
Among Alaska’s counties, Yukon-Koyukuk Census Area saw the largest increase in transfer dependency over the past 10 years, surging 8.8% from 33% in 2012. In dollar terms, government transfers per capita in Yukon-Koyukuk Census Area jumped from $19,217 in 2012 to $27,183 in 2022.
For comparison, the statewide average was 20.4% in 2022, showing a higher dependency than the national average of 17.6%. On a per capita level, this translates to $14,091 per resident, compared to $11,542 nationwide.
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).
In Fairbanks North Star Borough, reliance on government transfers was just 2.5% (or $902 per capita in inflation-adjusted 2022 dollars) in 1970. This has since increased to a total of 17.3% since 1970. This shift is largely influenced by increased healthcare costs, and economic transformations that have reshaped income sources across the U.S.
In 2022, the primary government transfer programs in Fairbanks North Star Borough included:
- Social Security: $2,401 per capita (17.9% of total transfers)
- Medicare: $1,376 per capita (10.3% of total transfers)
- Medicaid: $3,394 per capita (25.4% of total transfers)
- Income Maintenance Programs: $1,200 per capita (9% of total transfers)
With 12.7% of the population aged 65 and older, Fairbanks North Star Borough has a significant demand for Social Security and Medicare. However, counties with higher poverty rates also show elevated Medicaid and income maintenance participation.
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.
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 | Dependency on Transfers (%) | Change Since 2012 | Change Since 1970 | Per Capita Amount (2022) | Per Capita Since 2012 | Per Capita Since 1970 |
|---|---|---|---|---|---|---|
| Yukon-Koyukuk Census Area | 41.8% | +8.8% | – | $27,183 | $7,966 | – |
| Northwest Arctic Borough | 39.7% | +8.1% | +25.3% | $21,940 | $6,770 | $19,578 |
| Bethel Census Area | 37.9% | +9.9% | – | $18,453 | $5,572 | – |
| Wrangell City and Borough | 35.3% | +12.9% | – | $21,540 | $9,525 | – |
| Nome Census Area | 33.1% | +6.1% | +19.5% | $20,529 | $6,406 | $18,176 |
| Prince of Wales-Hyder Census Area | 30.5% | +8.6% | – | $16,210 | $6,490 | – |
| Hoonah-Angoon Census Area | 28.9% | +7% | – | $19,323 | $6,809 | – |
| Lake and Peninsula Borough | 27.3% | +8.9% | – | $18,355 | $6,956 | – |
| Denali Borough | 27.2% | +5.3% | – | $32,870 | $12,555 | – |
| Southeast Fairbanks Census Area | 26.7% | +6.7% | – | $16,143 | $5,810 | – |
| Dillingham Census Area | 26.5% | +8.8% | – | $16,165 | $5,766 | – |
| Kenai Peninsula Borough | 25.4% | +8.8% | – | $15,546 | $5,868 | – |
| Haines Borough | 25.3% | +5.7% | – | $21,659 | $10,174 | – |
| Yakutat City and Borough | 22.9% | +7.5% | – | $14,644 | $4,273 | – |
| Ketchikan Gateway Borough | 22.3% | +7.5% | +16.5% | $16,250 | $5,606 | $14,447 |
| Matanuska-Susitna Borough | 20.1% | +7.3% | +14.3% | $11,653 | $4,672 | $9,862 |
| Fairbanks North Star Borough | 19.8% | +6.9% | +17.3% | $13,388 | $5,336 | $12,486 |
| Kodiak Island Borough | 19.5% | +8.1% | +17% | $13,937 | $6,293 | $13,048 |
| Anchorage Municipality | 18.8% | +6.8% | +16.5% | $14,211 | $5,487 | $13,289 |
| Skagway Municipality | 18.4% | +10.6% | – | $13,898 | $5,690 | – |
| Sitka City and Borough | 17.8% | +6.1% | – | $14,256 | $5,621 | – |
| Juneau City and Borough | 15.4% | +5.5% | +11.8% | $12,125 | $4,749 | $10,519 |
| North Slope Borough | 12.1% | +5.3% | – | $9,058 | $2,860 | – |
| Bristol Bay Borough | 9.6% | +1.2% | +6.1% | $15,040 | $5,690 | $13,100 |
| Aleutians West Census Area | 7.9% | +1.6% | – | $5,483 | $1,591 | – |
| Aleutians East Borough | 7% | -0.9% | – | $4,487 | $942 | – |
