Effects of the Immigration Surge on the Federal Budget and the Economy

Immigration, both legal and illegal, tends to grow the national economy and improve the federal fiscal budget outlook, according to a July report from the Congressional Budget Office.

That’s because even undocumented immigrants typically pay more in income and payroll taxes than they receive in federal benefits.

It’s a different story for many state and local governments.

“The research literature has generally found that increases in immigration raise state and local governments’ spending — particularly on education, health care, and housing — more than their revenues,” the report said.

A record share of Americans said in February that they see illegal immigration as a “critical threat to the vital interests of the United States,” and the issue ranks as the No. 1 most important problem facing the country, according to Gallup.

A separate Gallup poll released last month showed that for the first time since 2005, a majority of Americans would like to see a decrease in all immigration.
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