Entrepreneurs Vivek Ramaswamy and Elon Musk’s Department of Government Efficiency (DOGE) have signaled funding for services for illegal immigrants is on the chopping block as the agency prepares to drastically prune government spending.
The department, which isn’t an official part of the government, is expected to be given power by President-elect Donald Trump to audit and then implement wide-ranging changes within government agencies.
DOGE called out spending by the U.S. on illegal immigration in a post on X by saying it cost taxpayers $150.7 billion “in 2023 alone.”
DOGE noted that when adjusted for inflation, the U.S. spending on illegal immigration in one year is comparable to government spending during all of World War I ($334 billion), significantly more than what was spent on the Manhattan Project ($30 billion), the Apollo space program ($257 billion), the Panama Canal (15.2 billion), and the Hoover Dam ($1 billion).
Musk additionally weighed in, posting on X that “the scale of spending on illegal immigration boggles the mind!”
Data referenced by DOGE is from a 2023 study by the Federation for American Immigration Reform (FAIR). FAIR’s most recent report, published in March 2023, estimated the net cost of illegal immigration — including local, federal, and state spending — was “at least” $150.7 billion, equal to $1.156 per taxpayer. This was an increase of almost $35 billion since 2017, when it was $116 billion.
FAIR said it arrived at this number by “subtracting the tax revenue paid by illegal aliens—just under $32 billion—from the gross negative economic impact of illegal immigration, $182 billion.” By estimates, the federal government spent $66 billion, while local and state expenditures added up to well over $115 billion.
The United States government doesn’t appear to have any recent estimates on how many taxpayer dollars are being spent on migrants here illegally.
The U.S. Accountability Office representative, Jessica Baxter, said the office “does not have any recent work addressing the federal government’s overall cost estimate on immigration-related efforts.”
“We have a few reports that provide information on costs associated with specific border security or immigration-related efforts, such as estimates of costs for incarceration of noncitizens, but these do not provide overall estimates,” said Baxter. “The two reports I’m referring to are from 2018 and 2011, so the data is somewhat dated. Our team is currently working on an update to the 2018 report, but the work is underway, and the report isn’t expected to issue any time soon.”
Director: The $150.7 billion number is actually a conservative estimate
FAIR’s executive director, Julie Kirshner, said the $150.7 billion number is actually a “very conservative estimate” and is likely much higher now that the undocumented population of migrants has continued to increase.
“The population we cited in the study was 15.5 million. We now estimate that it’s over 16.8 million. We’re in the process right now of doing another estimate on the illegal alien population, and I’m sure it will be higher,” explained Kirschner. “So, we know the costs are going to go up.”
Additionally, she said the 2024 study didn’t even include local and state spending on sheltering migrants. Though DOGE’s focus is primarily on the federal government, she stated that local and state spending—including health care, education, and incarceration—accounts for the most significant share of government spending on illegal immigrants.
Though specific numbers are complex to come by on the local level, U.S. cities are carrying a large part of the burden. The country’s biggest city by population, New York, estimates that with almost 100,000 asylum seekers having entered the city and “with no end in sight,” it will spend over $12 billion through fiscal year 2025. Meanwhile, Chicago has reportedly spent $400 million on migrant services in the past two years.
“There are more and more states using state taxpayer dollars to subsidize illegal immigration,” said Kirschner. “What we are seeing is state and locals are being forced to absorb all of these costs.”
Kirschner believes that once Trump takes office, DOGE and the Trump administration should work immediately to end government health care plans for illegals and close the loophole allowing illegal immigrants to get child tax and income tax credits. By doing this, she believes DOGE can save “billions and billions of dollars each year” for taxpayers countrywide.
“There is a lot we can do,” said Kirschner. “They are taking our own tax dollars and giving illegal aliens benefits and encouraging more illegal immigration. It is a crazy, crazy scenario where we’re seeing people welcome lawlessness, and it’s got to stop, and we’re hopeful that the DOGE will.”
