Immigration Massively Reduces Budget Deficits |
Immigration
A new Cato Institute study provides the most comprehensive analysis of this issue to date.
Ilya Somin | 2.8.2026 5:07 PM
A new Cato Institute study provides a comprehensive overview of the fiscal impact of immigration to the United States over thirty years, and finds that immigrants have reduced budget deficits by a massive $14.5 trillion from 1994 to 2023. Here is the authors' summary of the results:
Every year from 1994 to 2023, immigrants have paid more in taxes than they received in benefits.
Immigrants generated nearly $10.6 trillion more in federal, state, and local taxes than they induced in total government spending.
Accounting for savings on interest payments on the national debt, immigrants saved $14.5 trillion in debt over this 30-year period.
Immigrants cut US budget deficits by about a third from 1994 to 2023, and fiscal savings grew to $878 billion in 2023 (Figure 1).
Noncitizens accounted for $6.3 trillion of the $14.5 trillion debt savings.
College graduate immigrants accounted for........