In his January 11, 2024, testimony before the House Judiciary Committee’s Subcommittee on Immigration Integrity, Security, and Enforcement, Steven A. Camarota, Director of Research at the Center for Immigration Studies, examined the fiscal impact of illegal immigration on U.S. taxpayers. He concluded that illegal immigrants are a net fiscal drain, primarily due to their lower average education levels, which lead to reduced earnings and tax contributions, coupled with higher utilization of government services.
- Population Increase: Since January 2021, the illegal immigrant population has grown by approximately 2.6 million, reaching an estimated 12.8 million by October 2023.
- Educational Attainment: About 69% of adult illegal immigrants lack education beyond high school, compared to 35% of U.S.-born adults.
- Fiscal Impact: The lifetime net fiscal drain per illegal immigrant is estimated at $68,000, considering all taxes paid minus the cost of services received.
- Welfare Usage: Approximately 59% of households headed by illegal immigrants utilize at least one major welfare program, in contrast to 39% of U.S.-born households.
- Public Education Costs: The education of roughly 4 million children of illegal immigrants, predominantly U.S.-born, incurred costs of $68.1 billion in 2019.
- Healthcare Expenses: Providing care for an estimated 5.8 million uninsured illegal immigrants costs about $7 billion annually.
- Tax Contributions: In 2019, illegal immigrants paid approximately $5.9 billion in federal income taxes, $16.2 billion in Social Security taxes, and $3.8 billion in Medicare taxes.
Camarota emphasized that the fiscal challenges stem not from a lack of work ethic among illegal immigrants—94% of their households have at least one worker—but from systemic issues where low-income workers, including illegal immigrants, receive more in government services than they contribute in taxes. He advocated for rigorous enforcement of immigration laws to mitigate these fiscal impacts.
In New Mexico, undocumented immigrants significantly impact the state’s economy, both through their contributions and the costs associated with public services. According to the Institute on Taxation and Economic Policy findings, in 2022, they contributed approximately $153.8 million in state and local taxes, with projections indicating this could rise to $174.1 million if granted work authorization or other legal status.
However, these contributions are offset by the costs incurred for public services. A 2013 study by the Federation for American Immigration Reform (FAIR) estimated that illegal immigration costs New Mexico taxpayers about $717 million annually. This figure encompasses expenses related to education, healthcare, and law enforcement.
The net fiscal impact suggests that the costs associated with undocumented immigrants exceed their tax contributions, resulting in a financial burden on the state’s taxpayers. This underscores the need for comprehensive immigration reform to address the economic challenges and benefits associated with undocumented immigration in New Mexico.
While undocumented immigrants make meaningful contributions to New Mexico’s economy through taxation and labor, these contributions are outweighed by the significant costs associated with public services such as education, healthcare, and law enforcement. The data highlights a clear fiscal imbalance, with taxpayers shouldering a substantial net financial burden. Addressing this challenge requires comprehensive and balanced immigration reform that considers both the economic contributions and the public costs of undocumented immigration.
By implementing policies that promote greater workforce integration, enhance legal compliance, and ensure equitable access to opportunities, New Mexico can better manage the fiscal impact of immigration while fostering a sustainable and inclusive economic future. Without such reforms, the current budgetary strain will persist, affecting the state’s ability to provide critical services and invest in its long-term prosperity.