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What are the estimated costs of illegal immigration to US taxpayers in 2024?

Checked on November 20, 2025
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Executive summary

Estimates of the fiscal cost of illegal immigration to U.S. taxpayers in 2024 vary widely depending on method and source: some advocacy and congressional reports cite figures around $150–151 billion annually (for example, FAIR and House Budget Committee summaries) while other analysts and think tanks highlight large tax contributions by undocumented immigrants—roughly $96–97 billion in 2022 per ITEP—creating very different net-impact pictures [1] [2] [3]. Available sources do not provide a single consensus “2024” net cost number; instead, they present competing estimates tied to differing assumptions and time frames [4] [5].

1. Big headline figures: $150–$151 billion claims

Several reports and Republican congressional materials present a headline number of roughly $150.7 billion to $151 billion as the annual taxpayer cost associated with illegal immigration; the Federation for American Immigration Reform (FAIR) and the House Budget Committee have circulated this figure in 2024–2025 summaries [1] [2]. News outlets repeating these studies report the same round figure and sometimes break it down to “$8,776 per illegal alien or U.S.-born child” and “$1,156 per American taxpayer” before and after accounting for taxes paid by undocumented immigrants [6] [7].

2. What those $150B estimates count — and what they don’t

Advocates behind the ~$150B estimates emphasize costs like education, emergency health care, shelter, and other public services and often include dependent U.S.-born children in their totals; FAIR’s methodology and congressional committee summaries underpin many of those claims [1] [8]. However, the materials in the provided set do not include a full methodological appendix here, and critics point out that such tallies depend heavily on assumptions about population size, which services are attributable to “illegal” status, and time horizons—factors that change the result dramatically [8] [9].

3. Revenues and tax contributions change the picture

Other analyses underscore that undocumented immigrants also pay substantial taxes: the Institute on Taxation and Economic Policy (ITEP) estimates undocumented immigrants paid about $96.7 billion in federal, state, and local taxes in 2022, and similar reporting notes roughly $97 billion in taxes and social‑security contributions—funds that may offset some public costs [3] [5]. These revenue-side estimates are cited by researchers and advocates who argue that the net fiscal impact is smaller, or even positive over longer horizons, than some headline cost studies indicate [5] [4].

4. Nonpartisan economic context and long-term effects

Nonpartisan economists and organizations point to additional complexity: the Congressional Budget Office (CBO) projected increased immigration would expand GDP by trillions over a decade and raise revenue—an argument that inflows can improve federal finances over time even if short‑term costs rise in particular programs [4]. Academic and think‑tank testimony therefore frames fiscal effects as both short‑term budgetary pressures and long‑term economic gains, underscoring that “cost” depends on the fiscal window and which programs are counted [4].

5. State and local variation: some jurisdictions report big local burdens

Several state reports and press releases show substantial local fiscal effects, especially in states with higher immigrant shares or concentrated shelter and education costs; for example, Mississippi’s state auditor estimated millions annually in state costs, and New York reporting flagged billions in local spending on asylum‑seeker shelter and services in recent years [10] [11]. These subnational costs often drive political attention because local budgets cannot capture federal tax flows that might offset expenses [10] [11].

6. Why estimates diverge — key methodological disputes

Estimates diverge because researchers disagree on population size, whether to include U.S.-born children of undocumented parents, which programs to count (e.g., emergency Medicaid versus broader entitlement spending), and how to value long‑term lifetime fiscal impacts versus annual budgetary outlays. Government audits and GAO work from prior decades stressed comparing studies is difficult without identical scope and assumptions; the same warning applies to the 2024–25 debate [9] [8].

7. What the reporting does not resolve

Available sources do not produce a single authoritative net‑cost figure for 2024; instead, they offer competing snapshots—some emphasizing near‑term program costs (around $150B) and others emphasizing tax payments and long‑run economic gains (roughly $97B in taxes in 2022 and CBO projections of net GDP and revenue gains) [2] [1] [3] [4]. Determining a “true” 2024 cost requires harmonizing assumptions about population counts, time horizon, program inclusion, and revenue offsets—steps not fully contained in the materials provided [8] [9].

Bottom line: headlines citing ~$150 billion reflect one common methodology and political framing [1] [2], while other reputable analyses emphasize substantial tax contributions and potential long‑run fiscal benefits that reduce or reverse that net burden depending on assumptions [3] [4].

Want to dive deeper?
How do government studies calculate fiscal costs of undocumented immigrants versus native-born residents for 2024?
What were federal, state, and local spending impacts of illegal immigration in 2024 by category (education, healthcare, policing, welfare)?
How much tax revenue did undocumented immigrants contribute to federal and state coffers in 2024?
Which think tanks and academic studies provided 2024 estimates of net fiscal impact and how do their methodologies differ?
How did recent policy changes in 2024 (border enforcement, Title 42 end, asylum rule changes) affect the fiscal costs attributed to illegal immigration?