Transfer payments have become an important source of income, particularly in nonmetropolitan areas. By 1977, transfer programs represented 16.1 percent of nonmetro personal income, c compared with only 13.1 percent of metro personal income. This report describes the U.S. transfer payment system and iden ifies programs that are especially important to nonmetro areas. It documents the growth of transfer payments in both metro and nonmetro areas. The report also pinpoints counties that could be affected by changes in the transfer system because they receive large transfer payments.