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Effects of the Surge in Immigration on State and Local Budgets in 2023

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  • Congressional Budget Office

Abstract

The number of people entering the United States increased sharply starting in 2021 and peaked in 2023 before slowing in 2024. That surge in immigration imposed a fiscal burden on state and local governments. In this report, CBO examines the fiscal impact of that surge in 2023. State and local tax revenues grew, especially sales tax revenues, but the costs of providing services grew more. The largest increases in costs were for primary and secondary education, shelter and related services, and border security. Costs for incarceration and income security programs also increased.

Suggested Citation

  • Congressional Budget Office, 2025. "Effects of the Surge in Immigration on State and Local Budgets in 2023," Reports 61256, Congressional Budget Office.
    • Handle: RePEc:cbo:report:61256
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    File URL: https://www.cbo.gov/system/files/2025-06/61256-immigration-state-local.pdf
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    More about this item

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • F66 - International Economics - - Economic Impacts of Globalization - - - Labor
    • J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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