Could Immigration Reform Decrease the Federal Deficit?

Word on the street (or rather word from financial analysts) is changes to immigration law could cut billions from the federal deficit over the next two decades.

According to The New York Times, Congressional budget analysts made a positive economic assessment of proposed immigration law changes on Tuesday, stating that legislation to overhaul the nation's current immigration system would cut close to $1 trillion from the federal deficit and lead to more than 10 million new legal residents in the country.

The analysis conducted by the Congressional Budget Office found that the benefits of increasing legal residents from the immigration legislation currently being debated in the Senate would outweigh the costs.

The report estimated that in the first decade after the bill passes, which would then add additional taxpayers, would decrease the federal budget deficit by $197 billion. In the following decade, from 2024 to 2033, it would be an estimated $700 billion. But keep in mind that these figures do not account for the $22 billion required in spending to implement the bill.

The budget office also found that in the next decade the legislation would lead to an increase of about 10.4 million permanent legal residents and 1.6 million temporary workers, as well as a decrease of about 1.6 million unauthorized residents.