The Impact of Unauthorized Immigrants on the Budgets of State and Local Governments

Source: Congressional Budget Office

In preparing its analysis, the Congressional Budget Office (CBO) reviewed 29 reports published over the past 15 years that attempted to evaluate the impact of unauthorized immigrants on the budgets of state and local governments. (See the bibliography for a complete list of those reports.) CBO did not assess the data underlying those estimates or the validity of the models used to prepare them. The estimates — whether from formal studies, analyses of data on particular topics, or less-formal inquiry — show considerable consensus regarding the overall impact of unauthorized immigrants on state and local budgets. However, the scope and analytical methods of the studies vary, and the reports do not provide detailed or consistent enough data to allow for a reliable assessment of the aggregate national effect of unauthorized immigrants on state and local budgets…. After reviewing the estimates, CBO drew the following conclusions:
+ State and local governments incur costs for providing services to unauthorized immigrants and have limited options for avoiding or minimizing those costs.
+ The amount that state and local governments spend on services for unauthorized immigrants represents a small percentage of the total amount spent by those governments to provide such services to residents in their jurisdictions.
+ The tax revenues that unauthorized immigrants generate for state and local governments do not offset the total cost of services provided to those immigrants.
+ Federal aid programs offer resources to state and local governments that provide services to unauthorized immigrants, but those funds do not fully cover the costs incurred by those governments.

Full report (PDF; 318 KB)

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