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

Congressional Budget Office

No 61256, Reports from 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.

JEL-codes: F22 F66 J11 J15 J61 (search for similar items in EconPapers)
Date: 2025-06-05
New Economics Papers: this item is included in nep-lab and nep-mig
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