Over many years there has been a constant critique of immigrants that they impose a financial burden on local, state and federal governments. A common approach is to estimate public spending for immigrants without taking into account (1) enormous variation in burden/net contribution based on income, (2) their wage-related taxes and roles in pertinent industries (such as farming), and (3) citizens of matched demographics also are users of the same programs. This posting highlights some studies.
Below is a relatively succinct take on this issue. An ultra-simplified summary: low-income households, whether citizens or non-citizens, depend on government benefits – housing, food, medical care – to make ends meet. As most are federal, it is up to the federal government to decide if and how to make them available.
There are two complicated parts of immigration law which impose, in different ways, constraints on what federal public assistance programs that certain non-citizen foreign-born persons have access to. (Go here for my description of the Public Charge Determination and the Public Benefit Rule – the terms often are used informally) In all my readings on these standards, it became evident to me that while these standards are necessary, they are based on a core fiction: that to live in the United States, at the lowest quarter of household income, one can survive without at some time using public assistance programs.
First Trump administration Public Charge Rule
The “Public Charge” rule revisions proposed by the first Trump administration in 2018, but held off by a court, would have effectively barred a very large number of legal low wage immigrants in the country from obtaining green cards. For example, among 48% of farm worker households, at least one person used at least one of the cited public assistance program in the past two years.
The median total income of these primarily farm working households (in 2014) was roughly $25,000. About 20% of all U.S. households have total income under $25,000 (found here). Another 9% have incomes between $25,000 and $35,000. The median household income of non-citizen immigrants in $40,000. (go here). Bottom line: a large share of non-citizen immigrant households are now vulnerable to denial of a green card due to use of public assistance programs actively used by citizen households with low incomes.
Manhattan Institute Sept 2024 study (here and here)
Summary: Immigrants without a college education and all those who immigrate to the U.S. after age 55 are universally a net fiscal burden by up to $400,000. (Grandma coming in at age 65 has imposed a lifetime fiscal drain of $406,000). The large positive fiscal impact of young and college-educated immigrants pulls up the overall average. Each immigrant under the age of 35 with a graduate degree reduces the budget deficit by over $1 million during his lifetime. As for those coming to the U.S. to study, the fiscal impact of the average graduate degree holder who entered the U.S., aged 18–24 is outstandingly positive, which is why the author strongly favors keeping STEM students here to live.
For 18 – 24 year old immigrants without a high school degree, the lifetime net fiscal impact is negative $314,000. The author looks at the impact of a U.S. born person with the same profile and estimates negative $256,000. This is an interesting comparison as it shows that persons with poor formal education of a fiscal net loss, regardless of birth place.
Cato January 2026 study (here)
Summary: The public burden varies sharply by immigration status, largely because of age. Noncitizen immigrants—those on temporary visas, lawful permanent residents, and unauthorized immigrants—consumed by far the least: about $4,600 per person, or 54 percent less than natives. They represented 7.3 percent of the population but only 3.5 percent of total welfare and entitlement consumption. Their lower use holds across all major age groups and is especially pronounced for Social Security and Medicare, reflecting their younger median age.
Naturalized immigrants show a different pattern. They consumed about $11,500 per capita, roughly 17 percent more than native-born Americans. The study attributes this entirely to demographics: naturalized immigrants are older on average and therefore draw much more heavily on Social Security and Medicare. Once benefits are separated into old-age entitlements versus means-tested programs, naturalized immigrants still consume similar levels of means-tested welfare as natives, but significantly higher old-age benefits.