Let’s be honest. If you’ve spent any time on social media or watching the news lately, you’ve probably seen some pretty wild numbers about the financial impact of immigration. Some people say undocumented immigrants are a massive drain on every taxpayer’s wallet. Others claim they’re the secret engine keeping the American economy from stalling out.
The truth? It’s kinda messy.
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Figuring out how much do illegals cost the US isn't just about looking at one spreadsheet. It’s a tug-of-war between different levels of government. While the federal government might actually see some benefits from the taxes they collect, your local school district or county hospital is usually the one feeling the pinch.
The $150 Billion Question
If you’re looking for a hard number, the Federation for American Immigration Reform (FAIR) put out a massive report recently. They estimated that the net fiscal burden of illegal immigration on U.S. taxpayers is roughly $150.7 billion per year.
Now, that’s a "net" number. Basically, they took the gross cost—which they put at over $182 billion—and subtracted the taxes that undocumented people actually pay.
Where does all that money go?
Mostly to three things:
- Education: Public schools have to take in every kid, regardless of status. This is the single biggest expense.
- Healthcare: Emergency rooms can't turn people away. In Texas alone, hospitals reported over $1 billion in costs for treating undocumented patients in fiscal year 2025.
- Law Enforcement: Think local jails, court costs, and state-funded border operations like Texas's "Operation Lone Star."
Why the Federal Government Sees Things Differently
Here’s where it gets weird. The Congressional Budget Office (CBO) released a report in 2024 that sounded almost opposite to the "drain" narrative. They projected that the recent surge in immigration would actually reduce the federal deficit by $0.9 trillion over the next decade.
How does that work?
Simple: the federal government is great at collecting. Undocumented workers often pay into Social Security and Medicare using ITINs (Individual Taxpayer Identification Numbers) or fake numbers, but they’ll never see a dime of those benefits. The CBO estimates the surge will add about $1.2 trillion in federal revenue through 2034.
Essentially, the federal government is making a "profit" on the back end, while states like Arizona, Florida, and New York are left holding the bill for the immediate needs of the people living there.
The Hidden Costs of the "Deportation-Industrial Complex"
We also have to talk about the price of fixing the problem. In 2025, the "One Big Beautiful Bill Act" (OBBBA) shook things up by allocating a staggering $170 billion specifically for enforcement, detention, and deportation.
ICE’s budget didn't just go up; it tripled.
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We’re talking about $45 billion just to build new detention centers. When you ask how much do illegals cost the US, you have to decide if you’re counting the cost of their presence or the cost of the government's response to it.
The Brennan Center for Justice pointed out that this enforcement spending now eclipses what we spend on almost every other non-immigration federal law enforcement function combined. It’s a massive shift in where our tax dollars are going.
Education and the "Local" Burden
If you talk to a school board member in a border town—or even in places like Chicago or Denver—they’ll tell you the real cost is in the classroom.
The Center for Immigration Studies (CIS) estimates that the children of undocumented immigrants, most of whom are born here and are U.S. citizens, cost public schools about $68.1 billion annually.
It’s a complicated moral and financial knot. These kids are future workers and taxpayers, but the immediate cost to hire ESL teachers and expand classroom space is a heavy lift for local property taxpayers.
What’s the Bottom Line for You?
Honestly, whether you think the cost is "too high" usually depends on which set of books you’re looking at.
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If you look at the Macroeconomy, experts like Wendy Edelberg at Brookings argue that immigration boosts GDP and keeps the labor market flexible. They say it prevents "labor shortages" that would otherwise drive up the price of your groceries or your new house.
But if you look at State Budgets, it’s a different story. States can’t print money. When a hospital in Yuma, Arizona, racks up $26 million in uncompensated care, that money has to come from somewhere—usually higher taxes for residents or cuts to other services.
Actionable Insights: Navigating the Noise
If you want to understand the real impact without the political spin, keep these three things in mind:
- Check the Source: Reports from FAIR or CIS will always highlight the burden on local infrastructure. Reports from the CBO or the American Immigration Council will focus on revenue and GDP growth. You need both to see the whole picture.
- Follow the "Net" Number: Don't just look at spending. Look at "spending minus taxes paid." Undocumented immigrants contribute roughly $96.7 billion in federal, state, and local taxes every year, according to the Center for Migration Studies.
- Location Matters: The "cost" of immigration isn't evenly distributed. A taxpayer in a rural state with low immigration might see almost zero impact, while a taxpayer in a high-density urban center or a border county might see a noticeable shift in where their local taxes are allocated.
The debate over how much do illegals cost the US isn't going away anytime soon, especially with enforcement budgets reaching record highs in 2026. Understanding that the federal government wins while local communities often lose is the first step in moving past the headlines and seeing the actual math.