Connect with us

Regional News

Immigration Surge Cost State, Local Governments $9 Billion in 2023, Nonpartisan CBO Says

Published

on

WASHINGTON — The unprecedented increase in immigration starting in 2021 brought extra revenue to states and local governments, but the cost of services for those newly arrived migrants was greater, leading to a net cost of $9.2 billion in 2023, according to a report the nonpartisan Congressional Budget Office published Thursday.

The roughly 4.3 million immigrants who arrived from 2021 to 2023 paid about $10.1 billion in state and local taxes in 2023, according to the report. Accounting for births and deaths, the net population gain from immigration in those years was about 4.4 million, CBO said.

Across the country, state and local governments spent about $19.3 billion in goods and services for those immigrants, with costs concentrated on providing education and shelter, CBO estimated.

The $9.2 billion direct net cost amounts to 0.3% of state and local spending, CBO said.

“State and local governments saw both their tax revenues and their spending increase in 2023 as a result of the surge in immigration,” the CBO report said. “In CBO’s estimation, the increase in spending was greater than the increase in taxes.”

In an alternative calculation, CBO estimated that when accounting for indirect effects — for example, increases in property taxes and economic activity, greater demand for government services — the surge led to a spending increase of $28.6 billion and increased revenue of $18.8 billion for state and local governments, netting a loss of roughly $9.8 billion.

More than half of newly arrived immigrants resided in six states: California, Florida, Illinois, New Jersey, New York and Texas.

CBO estimated that in 2023, about 550,000 children in public schools, or 1.1% of students, were immigrants who’d arrived since 2021.

“In CBO’s estimation, the surge in immigration directly increased spending for public primary and secondary education by $5.7 billion, or 0.7 percent, in 2023,” according to the report.

Those higher costs were “due to lower English proficiency among the surge population.”

“Because recent immigrants are often English-language learners, they tend to need additional instructional and support services,” according to the report. “CBO estimates that those services cost state and local governments $1.2 billion in 2023.”

Another high cost was shelter services, CBO found. Four states — New York, Massachusetts, Illinois, and Colorado — “spent a total of $3.3 billion to provide shelter and related services, including food and legal support, to the surge population in 2023,” according to the report.

In 2021, the Biden administration dealt with the highest levels of migration at the southern border in 20 years. In an effort to ease the increase at the U.S.-Mexico border, several programs were created to allow migrants to obtain work permits or enter the country while their asylum cases were pending before immigration court.

A nonpartisan New York think tank that studies domestic and international migration, the Center for Migration Studies, released a report that found the population of people in the United States without permanent legal status increased to by 2 million to 12.2 million by 2023, using the most recent Census Bureau American Community Survey data.

by Ariana Figueroa, Virginia Mercury


Virginia Mercury is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Virginia Mercury maintains editorial independence. Contact Editor Samantha Willis for questions: info@virginiamercury.com.

Front Royal, VA
41°
Clear
6:44 am7:44 pm EDT
Feels like: 41°F
Wind: 2mph S
Humidity: 51%
Pressure: 30.52"Hg
UV index: 0
FriSatSun
81°F / 57°F
73°F / 48°F
73°F / 61°F
Local Government3 hours ago

Supervisors Revisit Cross-County Chester Gap F&R Service, See Member-Staff Confrontation After Numbers Apology Offered

Interesting Things to Know17 hours ago

Get Your Equipment Ready Before the Start of Fishing Season

Job Market17 hours ago

Landscaping Careers Offer Outdoor Work and Creative Opportunities

Local News1 day ago

Blue Ridge Wildlife Center Patient of the Week: Virginia Opossum

Community Events1 day ago

From Crime Scenes to K9 Units: Citizens Academy Opens in May

Town Notices1 day ago

Weekly Yard Waste Pickup Begins April 8 in Front Royal

Local Government1 day ago

Town Council Reviews Goals at Retreat in Advance of Work Session

State News1 day ago

New Virginia Laws Target School Construction and Classroom Cellphone Use

Community Events2 days ago

Clear Horizons Brings Fresh Approach to Mental Health

State News2 days ago

Funding Cuts, State Error Strain Virginia’s HIV Care System

State News2 days ago

Virginia Hospitals Filed More Than 1 Million Medical Debt Lawsuits Since 2010, a New Report Finds

report logo
Arrest Logs2 days ago

POLICE: 7 Day FRPD Arrest Report 4/6/2026

State News2 days ago

Spanberger Signs Bipartisan Bills Tied to Billions in Business Investment Across Virginia

Regional News2 days ago

Birthright Case Forces US Supreme Court to Confront Prospect of Americans Losing Citizenship

Obituaries2 days ago

Caleb Benton McKinstry (2010 – 2026)

Mature Living2 days ago

Ideas for Nurturing — or Rediscovering — Your Inner Child

Food2 days ago

Protein Takes Center Stage in Updated U.S. Dietary Guidelines

Local News2 days ago

Blue Ridge Wildlife Center Acknowledges a Quarter of a Century of Work in Wildlife Preservation & Human Education

Historically Speaking2 days ago

What Does A ‘Fair Share’ Really Mean?

Community Events2 days ago

South Warren Ruritan Club Hosts 20th Annual Spaghetti Dinner Fuels Scholarships for Local Teens

State News2 days ago

Trees Take Root as Virginia’s Frontline Defense Against Urban Heat

State News2 days ago

Virginia Set to Rejoin RGGI as Utilities Prepare to Pass the Cost Back to Ratepayers

State News3 days ago

Virginia Joins Multi-State Lawsuit Challenging Trump’s Election Order

Regional News3 days ago

Trump Budget Seeks 43% Boost in Defense Spending, Cuts in Many Domestic Programs

State News3 days ago

Virginia Sees 33,000 ACA Enrollment Drop Since Subsidies Expired, More Likely on the Way