Politics

MATT EAGAN: The Border Crisis Is A Huge Expense For American Taxpayers, Despite What CBO Says

Migrants at the U.S.-Mexico border in Arizona.

A recent report from the Congressional Budget Office (CBO) suggests that the ongoing illegal immigration surge at the southern border will reduce the federal deficit by a staggering $897 billion over the next decade.

At first glance, this figure might seem like a silver lining to this national crisis. However, a closer examination reveals a more complex and concerning picture and reveals this report to be another example of the government trying to conceal the truth from American citizens.

While the CBO projects an increase in revenues of $1.175 trillion and an increase in mandatory spending and spending on net interest of $278 billion over the next 10 years, these numbers fail to capture the full scope of the situation. The report’s limitations and glaring omissions paint an incomplete picture that may lead to misguided policy decisions if Congress does not understand the actual fiscal impacts of the border crisis. By publishing such an incomplete report, CBO is playing a role in covering up the Biden-Harris border crisis and not giving Congress the information it needs to fix the problem.

One glaring omission is the exclusion of discretionary spending impacts. The CBO acknowledges that the immigration surge will likely put pressure on many programs funded through discretionary appropriations. In fact, CBO estimates that increased discretionary funding as a result of the border surge could total around $200 billion over the 2024-2034 period. This substantial sum is mentioned but not factored into the deficit reduction calculation because, as CBO says, “no clear basis exists for projecting how the immigration surge will affect [congressional] funding decisions.”

Moreover, the report “does not include estimates of the surge’s effects on state and local budgets.” The CBO itself admits that “[r]esearch has generally found that increases in immigration raise state and local governments’ costs more than their revenues, and CBO expects that finding to hold in the case of the current immigration surge.” New York City alone spent $4.3 billion from July 2022 to March 2024 to accommodate immigrants and comply with existing housing policies. Extrapolating this to other cities over a decade paints a sobering picture of the financial burden on local communities.

The state of Texas was forced to take action on its own. First with Operation Lone Star (OLS), a response to the border crisis triggered by the Biden-Harris administration’s failure to enforce federal laws along the border. OLS has cost Texans about $11 billion and that’s just to secure the border. That does not include costs to the state’s health care, education, and criminal justice systems — which increase with the addition of aliens who have been let in by the Biden-Harris administration. The CBO report does not adequately assess or include these costs and they can be found in every state.

The revenue calculations assume lower tax compliance rates among the population who entered the nation via the border crisis. This raises questions about the accuracy of the projected $1.2 trillion in additional revenue.

Beyond the fiscal impacts, the report hints at broader economic consequences. The illegal immigration surge is expected to lead to lower productivity, reduce average wage growth (particularly for non-college educated workers), higher interest rates, and increased medical and food prices. These factors could have far-reaching effects on the American economy and the well-being of citizens.

Perhaps most concerning is the CBO’s own admission that its “estimates of the budgetary effects of the immigration surge are highly uncertain.” The report lists numerous “[m]ajor sources of uncertainty,” including the number of aliens who have entered the country, the duration of the border crisis itself, the changing immigration status of individuals, and their impact on productivity. Essentially, many metrics crucial to the estimate are shrouded in uncertainty and the authors of the report knew it and still published these estimates that claim mass illegal immigration is good for the deficit.

Making policy decisions based on such questionable projections, where the political left has clearly put its thumb on the scale, could have disastrous consequences and exacerbate existing problems. We must demand a more comprehensive analysis that accounts for all costs — both seen and unseen. Not a report that is politically appealing to the left’s narrative on illegal immigration.

The border crisis is not just about numbers on a balance sheet. As we debate immigration policy, we must consider not just the potential fiscal benefits but also the hidden costs and societal impacts. The Centers for Disease Control and Prevention estimated there were 74,702 fentanyl overdose deaths in the United States last year — a drug we know flows in through our open southern border.

Human trafficking and smuggling into the United States is a booming multi-billion dollar business for Mexican cartels. We must end this crisis now. When comparing the fiscal impacts to the human toll, money seems secondary and that is true, but understanding the monetary effects is important to solving the larger problem.

The CBO report should be seen as deficient and, overall, as a liability since it does not give Congress the information it needs to take action. The future of our nation depends on getting this right.

With an honest and complete assessment, we can get good legislation like the Secure the Border Act signed into law, force strong executive actions from future presidents, and keep Americans safe. These policies will ensure our nation knows who is coming in, and what the impacts of that are to U.S. citizens. But we need the CBO and Washington to stop playing politics with vital information.

Matt Eagan is the Director of Federal Affairs at the Texas Public Policy Foundation.

The views and opinions expressed in this commentary are those of the author and do not reflect the official position of the Daily Caller News Foundation.

(Featured image credit: Screen Capture/PBS NewsHour)