CBO predicts immigration crisis could reduce US deficit by one trillion dollars over 10 years

The nonpartisan Congressional Budget Office (CBO) predicted Tuesday that the recent surge in immigration could actually trim the United States's deficit by as much as $1 trillion over the next decade.

The report counts immigrants as "other foreign nationals," and looks at people who are in the country illegally, people who came to the country legally through parole authority but are still waiting for their court dates, and people that came to the country through a legal visa but remained in the country past its expiration date.

The new analysis projected that the surge in immigration from 2021 through 2026, could lower the overall deficit by $900 billion, and increase revenue by $1.2 trillion because of its potential impact on income and payroll taxes.

“CBO’s estimate of those tax revenues is based on its assessment that those immigrants will initially have lower-than-average income but that their earnings will increase as they remain in the United States,” the agency said, per The Hill. “CBO’s estimate is also based on its assessment that about half of immigrants in the surge will be authorized for work and will be as likely to pay taxes on their income as the rest of the population.

“Immigrants who work without authorization will pay some taxes but are considered less likely to do so than the rest of the population," the office added.

The CBO said its projection are not concrete, but it estimates the total number of people immigrating to the United States will be “8.7 million greater over the 2021-2026 period" than previously expected.

The report comes on the same day that President Joe Biden announced new immigration policies that protect undocumented spouses of U.S. citizens, and people in the Deferred Action for Childhood Arrival program.

Misty Severi is an evening news reporter for Just the News. You can follow her on X for more coverage.