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Waste of the Day: Immigration’s Big Cost to States

Unlimited and unvetted immigration cost States $9.2 billion in one year, net of any taxes the immigrants actually paid.

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Money, in 100 dollar bills, some bundled in a metal attache case, some loose and scattered

Topline: State and local governments spent an estimated $770 million in 2023 to incarcerate immigrants who had been in the country for less than three years, according to a new report from the Congressional Budget Office.

Immigration has costs States more than twice as much as any taxes immigrants actually paid

Key facts: The CBO report reviewed the “surge population” of immigrants that began arriving in 2021 and added 4.4 million people to the U.S. population by the end of 2023. “Most” of the immigrants “were not lawful permanent residents” and “were not eligible to apply for lawful permanent residency,” according to the report.

Waste of the Day Immigration Big Cost to States
Waste of the Day 7.1.25 by Open the Books

The surge population had a $9.2 billion net cost in 2023. Immigrants who were part of the surge paid $10.1 billion in taxes to state and local governments, but the governments spent $19.3 billion on goods and services for the immigrants, according to the CBO. 

That means state and local governments spent roughly $2.10 for every $1 immigrants paid in taxes. The expenses included $5.7 billion for education, $3.3 billion for food and shelter, $2.7 million on border security, $1 billion for Medicaid and similar health programs, and more.

By the end of 2023, an estimated 13,500 “surge population” immigrants were in prison for violating state or local laws. The number does not include those in federal jails for violating immigration law.

The CBO noted that 13,500 is a low number considering just how many people entered the country, and explained that “Research has consistently found that immigrants are less likely than native-born citizens to be arrested, convicted, or incarcerated.”

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Time to address higher immigration levels

Still, the $770 million cost of jail time is a result of the mass migration to the U.S. from 2021 to 2023, which the CBO said increased the country’s population by 1.3% more than if immigration levels had remained at historically average levels. 

Search all federal, state and local salaries and vendor spending with the world’s largest government spending database at OpenTheBooks.com.  

Summary: A responsible government collects more money than it spends, meaning U.S. states must find a way to address increases in immigration without wreaking havoc on their budgets.

The #WasteOfTheDay is brought to you by the forensic auditors at OpenTheBooks.com.

This article was originally published by RealClearInvestigations and made available via RealClearWire.

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Terry A. Hurlbut has been a student of politics, philosophy, and science for more than 35 years. He is a graduate of Yale College and has served as a physician-level laboratory administrator in a 250-bed community hospital. He also is a serious student of the Bible, is conversant in its two primary original languages, and has followed the creation-science movement closely since 1993.

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Jeremy Portnoy, former reporting intern at Open the Books, is now a full-fledged investigative journalist at that organization. With the death of founder Adam Andrzejewki, he has taken over the Waste of the Day column.

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