immigration

Immigrants Cost Taxpayers, Then Pay More Than Most

New research shows immigrants ultimately make state and local governments more money on average than native-born Americans.
BY  JULY 6, 2017
Immigrant boy waving an American flag.
Adult children of first-generation immigrants eventually contribute more than native-born Americans in federal, state and local taxes. (AP/Jacquelyn Martin)

While the national debate rages over immigration, new research shows how much new immigrants cost state and local governments in the short-term -- and how much they pay off in the long-term.

Two studies, one by the Urban Institute and a larger one by the National Academies of Science (NAS), find that first-generation immigrants are costlier to state and local governments than native-born adults, but over time, those effects reverse. While first-generation immigrants cost an average of nearly $3,000 more per adult, the adult children of these immigrants eventually catch up and contribute the most on average to federal, state and local coffers.

Kim Reuben, a senior fellow at the Urban Institute, says the initial higher costs of new immigrants is in large part because of their children. "Education is expensive -- if you have more kids in general as a group compared to other groups, you're going to have higher costs," says Reuben, who co-authored the study and contributed to the NAS report. "But the answer isn't to not educate those kids because we also find that the people who contribute the most to society, even when you control for demographics, are these immigrant [kids]."

The Week in Public Finance: What We Don't Know About Sanctuary Cities' Funding, New Reasons to Save and More

A roundup of money (and other) news governments can use.

BY  JANUARY 27, 2017

What We Don't Know About Trump's 'Sanctuary City' Order

On Wednesday, President Donald Trump took his first move to defund cities that refuse to cooperate with federal efforts to deport undocumented immigrants. Trump signed an executive order directing the Secretary of Homeland Security to look at federal grant funding to cities “to figure out how we can defund those streams,” said White House Press Secretary Sean Spicer.

Many of the nation’s largest cities -- including Chicago, Los Angeles, New York City and San Francisco -- are immigrant sanctuaries and have said they won’t back down from their policy.