Discussion Paper

Federal Government Transfers in the Rural Fifth District


Abstract: In previous articles, we articulated the role that cuts in federal government workforce and spending might have on the Washington, D.C., region of the Fifth Federal Reserve District. But another key piece of federal government spending that impacts our Fifth District communities is transfer payments. For many households in the Fifth District, transfer payments from the government comprise a sizable share of personal income. Whether it be medical benefits, social security, or unemployment insurance, transfer payments serve as a tool for both poverty alleviation and household financial stability. The degree of reliance on government transfers varies widely across Fifth District geographies. Particularly, there are notable differences between rural and urban spaces, primarily due to income and demographic differences.

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Provider: Federal Reserve Bank of Richmond

Part of Series: Regional Matters

Publication Date: 2025-06-20