Immigrants Consume Far Less Welfare Than American Citizens: Study

Immigration and Benefits: A Closer Look at the Data

A recent study released by the Cato Institute has shed light on an often-debated topic: the use of federal benefits by immigrants compared to native-born American citizens. According to the study, immigrants are claiming 54% fewer benefits from the federal government than native-born citizens. This includes programs like Medicare and Social Security. In 2022, the U.S. government spent approximately $3.1 trillion on welfare and entitlement programs, with only about $109 billion allocated to non-citizens, a group that includes illegal immigrants. Alex Nowrasteh, vice president for economic and social policy studies at the Cato Institute, emphasized that while non-citizens make up around 7% of the population, they account for only about 3.5% of benefit usage. He suggested that further savings could be achieved by restricting welfare access to U.S. citizens, though he acknowledged the political challenges of implementing such changes.

Why It Matters: Immigration and Welfare in the Spotlight

The issue of immigration, particularly illegal immigration, has become a central talking point as the 2024 election approaches. President Donald Trump’s campaign, which heavily focused on immigration, brought this issue to the forefront, and it remains a contentious topic in Washington and across the country. The debate over whether government funds should be allocated exclusively to American citizens has sparked heated discussions, with many arguing that limiting welfare to citizens could help reduce costs and deter illegal immigration. The Cato Institute’s study provides valuable data to inform this conversation, offering insights into how immigrants, including both legal and illegal residents, utilize federal benefits.

What to Know: Breaking Down the Numbers

The Cato Institute’s study analyzed 2022 data to compare benefit usage among native-born Americans, naturalized immigrants, and non-citizens. Non-citizens, a category that includes undocumented immigrants, those with temporary visas, and green card holders, received significantly fewer benefits than the other groups. On average, non-citizens claimed $4,564 per capita in benefits, compared to $9,623 for native-born citizens and $11,135 for naturalized immigrants. Naturalized immigrants, who are generally older, tended to use more benefits, likely due to their greater eligibility for programs like Social Security and Medicare. Notably, non-citizens received far less in Social Security benefits, averaging just $629.38 annually, and were also near the bottom in most other benefit categories, except for Medicaid, where they received an average of $2,099.51, slightly less than the $2,504.10 received by native-born citizens.

The study also revealed interesting patterns when it came to benefits claimed by immigrants from different regions. Hispanic immigrants, for example, claimed fewer benefits than their white and Black counterparts but more than Asian immigrants. However, one limitation of the data was the inability to distinguish between legal and illegal immigrants within the non-citizen category, making it difficult to determine how much of the $109 billion was allocated to undocumented individuals versus those with legal status who are contributing to the system through taxes.

The Fiscal Impact of Immigration

The debate over immigration and benefits is not just about fairness; it’s also about the fiscal health of the nation. While some argue that immigrants place a strain on federal programs, the data paints a more nuanced picture. The Congressional Budget Office (CBO) reported in July 2024 that the recent surge in immigration is expected to have a positive impact on the economy over the next few years. Between 2024 and 2028, the CBO projects that immigrants will contribute approximately $249 billion in additional taxes, compared to an expected $61 billion increase in benefits payouts. This would result in a net reduction of the federal deficit by $189 billion. Similarly, a November 2024 report from the Bipartisan Policy Center found that immigrants paid around $383 billion in federal taxes, helping to fund the very programs that all eligible U.S. residents, including themselves, rely on.

Nowrasteh and his co-author Jerome Famularo highlight that immigrants are not a drain on the welfare state, as they consume fewer benefits than native-born Americans. While there may still be opportunities to reduce costs by tightening eligibility for non-citizens, the data suggests that immigrants overall contribute significantly to the economy and federal revenue.

What People Are Saying: Perspectives on Immigration and Welfare

The issue of immigration and benefits has sparked a range of opinions from experts and policymakers. Some, like Matthew Dickerson and Amelia Kuntzman of the Economic Policy Innovation Center, argue that closing loopholes and cutting off welfare benefits to illegal immigrants is both a commonsense and fiscally responsible approach. They suggest that such measures could help stem the tide of illegal immigration and reduce costs for American taxpayers. On the other hand, the Bipartisan Policy Institute emphasizes the positive contributions of immigrants to the economy, workforce, and tax revenues, calling immigration a "bright spot" amid growing fiscal challenges. While immigration alone cannot solve the nation’s financial problems, the institute argues that it plays an important stabilizing role in addressing rising debt concerns.

What Happens Next: Policy Changes and Future Outlook

As the debate over immigration and welfare continues, the Trump administration has taken steps to restrict access to federal benefits for non-citizens. Many of the policies introduced by the Biden administration, which allowed immigrants to work legally and access protections, have been rolled back. This shift could reduce the eligibility of non-citizens to pay into the system and receive benefits. Meanwhile, the Department of Government Efficiency (DOGE) is working to identify and eliminate government waste, which could lead to further adjustments in benefit payouts to create savings.

In conclusion, the discussion around immigration and federal benefits is complex and multifaceted. While the data shows that immigrants use significantly fewer benefits than native-born citizens, there are still opportunities to streamline programs and reduce costs. However, any reforms must be carefully considered, as they not only affect immigrants but also have broader implications for the economy and the fiscal health of the nation.