Critics say Immigrants contribute to the economy through work, consumer spending and taxes

By Guy Page

A return to large-scale illegal immigration, combined with proposals to grant legal status and expand federal benefits to undocumented immigrants, could impose hundreds of billions of dollars in additional costs on American taxpayers, according to a new economic analysis released by the Trump administration.

The White House Council of Economic Advisers (CEA) estimates that the lifetime net fiscal cost of an immigrant living illegally in the United States averages $166,716, with the total cost of the current undocumented population estimated at $1.4 trillion to $1.9 trillion.

The administration also warns that adopting a broader package of policies associated with the Democratic Socialists of America (DSA), including immigration amnesty and expanded government benefits, could cost $49 trillion over ten years, or more than $350,000 per American household.

However, that $49 trillion figure covers a broad range of proposed economic policies, not illegal immigration alone. The CEA estimates the ten-year cost of the immigration proposals at $440 billion to $613 billion.

Costs of federal benefits

According to the CEA, granting legal status to undocumented immigrants could increase their eligibility for federal assistance programs, resulting in additional government spending.

The administration projects the following annual increases:

• Medicaid: $30 billion to $40 billion.
• Supplemental Nutrition Assistance Program (SNAP): $3.6 billion to $4.7 billion.
• Federal housing assistance: $2.3 billion to $3 billion.

Combined, the administration estimates these programs could add $36 billion to $47 billion in annual federal spending, or $361 billion to $475 billion over ten years.

These estimates depend on assumptions about how many immigrants would receive legal status, qualify for benefits and enroll in federal programs.

Under current federal law, undocumented immigrants generally are ineligible for most federal means-tested benefits, although exceptions exist for emergency medical services and certain other forms of assistance.

Economic benefits and costs

Economists disagree over immigration’s long-term fiscal impact. Immigrants contribute to the economy through work, consumer spending and taxes, while also increasing demand for schools, health care, housing and other public services.

The net impact depends on employment, earnings, tax payments, benefit eligibility and the costs borne by federal, state and local governments. The administration’s estimates reflect its assumptions about those factors and future immigration policies.

Border enforcement and future policy

The Trump administration reports historic lows in illegal border crossings and 16 consecutive months without releasing migrants who crossed illegally into the United States.

The White House warns that proposals to limit deportations, grant legal status and expand federal benefits could reverse those gains and increase taxpayer costs. Democratic positions vary, however, and support for immigration reform does not necessarily mean support for unrestricted border crossings.