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Congressional budget office website11/10/2023 ![]() ![]() ![]() While any program that grants lawful immigration status and work permits to unauthorized workers might increase access to and use of federal programs, it will also increase federal tax revenues and yield other positive economic effects such as increased productivity of labor and capital, and increased educational attainment, income, earnings, and tax payments. Finally, newly work-authorized workers are more likely to become ineligible for means-tested programs once they obtain work authorization and their incomes increase. Even when they do gain access, noncitizens who are eligible for federal public benefits such as SNAP (aka food stamps) and TANF (aka cash assistance) generally have much lower participation rates than U.S. The few who may become eligible for federal public benefits often face a five-year or longer waiting period before gaining access to these programs. Other Federal Public BenefitsĪs the CBO notes, the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (PRWORA) denies eligibility for all of the major federal health care and public benefit programs to most noncitizens. This figure would only increase if more workers were given lawful status.Īt the same time, any future spending for Social Security and Medicare for a newly authorized population would not increase in direct proportion to the number of people granted status, because earnings for noncitizens during their working years-particularly those in which they were not authorized to work-were lower. The CBO cites estimates indicating that over 50 percent of unauthorized workers pay income taxes and Social Security and Medicare taxes (aka payroll taxes) through their employers, even though they are not eligible for benefits under these programs. Granting lawful immigration status to currently unauthorized workers would increase federal coffers that currently support citizens claiming Social Security and Medicare benefits. Noncitizens are much more likely than citizens to be healthy, of working age, and able to contribute to Social Security and Medicare, and are much less likely to need these programs in the near future. Significantly, 74 percent of noncitizens are of working age, compared to 51 percent of the citizen population. Only 7 percent of noncitizens are age 65 or older, compared to 15 percent of the citizen population. The CBO confirmed that the noncitizen population in the United States is significantly younger than the citizen population. Potential Impact on Access to Benefits Social Security and Medicare The proposals CBO reviewed include a broad legalization program for undocumented immigrants shifting eligibility for lawful permanent residence from family-based to work- and “merit”-based eligibility increasing the number of temporary visas granted every year and increasing funding for border security and interior enforcement. The CBO assessed the impact of various immigration policy proposals on the federal budget, looking specifically at the costs associated with changes to eligibility and program participation as well as new revenues from higher wages and a larger tax base. immigration policy would have a net positive impact on the federal budget. In its January 2015 report How Changes in Immigration Policy Might Affect the Federal Budget, the nonpartisan Congressional Budget Office (CBO) confirms that a fair and inclusive U.S. He reported the U.S.CBO Report Confirms a Positive Impact of Immigration Reform on Federal Budget ![]() The CBO is a nonpartisan federal agency that provides cost estimates to Congress for proposed legislation.Ĭongressional Budget Office (CBO) Director Phillip Swagel discussed the current budget and economic outlook. In regard to the next 10 years, he said the deficit is projected to grow to 6.9 percent of gross domestic product (GDP) in 2033, which he remarked was “significantly larger than the 3.6 percent of GDP that deficits have averaged over the past 50 years.” Director Swagel added the growth of interest costs and spending currently outpaces revenue and the economy, thereby driving up debt. He further reported the CBO’s forecast for 2023 was stagnant output, rising unemployment, and gradually slowing inflation. could default on its debt between July and September unless the debt limit is raised. T18:21:24-05:00 Congressional Budget Office (CBO) Director Phillip Swagel discussed the current budget and economic outlook. ![]()
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