Exploring Economic Effects of Illegal Immigration on US Taxpayers

Group of people at border wall with patrol agents.

Illegal immigration cost U.S. taxpayers a staggering $150.7 billion in 2023, according to a recent report, sparking debate about the financial burden on American citizens.

At a Glance

  • Illegal immigration cost U.S. taxpayers $150.7 billion in 2023
  • Each illegal immigrant or their U.S.-born child costs $8,776 annually
  • The cost of illegal immigration exceeds the GDP of several U.S. states
  • Over 3.3 million illegal immigrants have been released into the U.S. since President Biden’s inauguration
  • Tax payments by illegal aliens cover only about one-sixth of the costs they generate

The Financial Burden of Illegal Immigration

The Department of Government Efficiency (DOGE), part of the anticipated Trump administration, has highlighted the substantial fiscal impact of illegal immigration on American taxpayers. According to data from the Federation for American Immigration Reform (FAIR), the cost of illegal immigration to U.S. taxpayers reached $150.7 billion in 2023 alone. This figure represents a net cost after accounting for an estimated $32 billion in taxes contributed by illegal immigrants.

To put this expenditure into perspective, the cost of illegal immigration surpasses the Gross Domestic Product (GDP) of several U.S. states, including Mississippi and New Mexico. On an individual level, each illegal immigrant or their U.S.-born child costs American taxpayers approximately $8,776 annually. When distributed across the entire taxpaying population, this translates to an annual cost of $1,156 per American taxpayer, or $957 after accounting for taxes paid by illegal aliens.

The Growing Financial Impact

The financial burden of illegal immigration has been steadily increasing. From 2017 to 2023, the cost rose by nearly $35 billion. This growth can be attributed to various factors, including changes in immigration policies and enforcement practices. Since President Biden’s inauguration, over 3.3 million illegal immigrants have been released into the United States, contributing to the escalating costs.

“FAIR believes that every concerned American citizen should be asking our government why, in a time of increasing costs and shrinking resources, it is spending such large amounts of money on individuals who are not authorized to be in the United States.” – FAIR

The report highlights that federal expenditures on illegal aliens have reached approximately $66.4 billion, marking a 45% increase since 2017. State and local fiscal burdens have also risen significantly, totaling $115.6 billion, a 30% increase over the same period. These figures underscore the growing strain on both federal and local resources.

Tax Contributions and Economic Impact

While illegal immigrants do contribute to the tax base, their contributions fall significantly short of covering the costs they incur. FAIR estimates that state and local taxes collected from illegal aliens total $15.2 billion, which is insufficient to offset the expenses associated with their presence. In total, illegal immigrants contribute an estimated $31.4 billion in taxes, covering only about one-sixth of the $182 billion in total national expenditures they generate.

“The incoming Trump administration’s Department of Government Efficiency (DOGE) is taking aim at the burden illegal immigration places on U.S. taxpayers.” – DOGE

It’s important to note that many illegal aliens work in the underground economy, often avoiding income tax payments. Some may even receive net cash profits through refundable tax credit programs, further complicating the financial picture. The report also points out a lack of transparency in government data reporting on illegal immigration, making it challenging to fully assess the economic impact.

Policy Implications and Debates

The financial impact of illegal immigration has fueled ongoing debates about immigration policy and enforcement. Critics argue that the Biden administration has “dismantled interior immigration enforcement to allow illegal aliens to remain in the country,” potentially increasing taxpayer costs. This has led to tensions between state and federal authorities, exemplified by Texas Governor Greg Abbott’s initiation of Operation Lone Star to enforce border security, resulting in legal disputes and significant migrant apprehensions.

As the debate continues, the financial burden of illegal immigration remains a central issue for policymakers and taxpayers alike. With costs exceeding $150 billion annually and growing, finding effective solutions to address illegal immigration while managing its economic impact remains a pressing challenge for the United States.

Sources:

  1. DOGE highlights how much illegal immigration costs US taxpayers
  2. How Much Do Illegal Immigrants Cost the U.S.?
  3. The Fiscal Burden of Illegal Immigration on United States Taxpayers | 2023 Cost Study