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The Federal Budget: Spending, Taxes, and Debt

Billions Of Government Benefits For Illegal Aliens

The Federal Budget: Spending, Taxes, and Debt Policy Rapid Response BlogDecember 17, 2024 By Matthew Dickerson

Introduction

The Cost of Welfare for Illegal Aliens is Estimated to be Billions.
The open borders policies of the Biden-Harris Administration have caused chaos and encouraged a dramatic increase in illegal immigration.

A Costly Surge

U.S. Customs and Border Protection recorded 10.8 million encounters with illegal aliens between fiscal years 2021 and 2024. The Congressional Budget Office (CBO) estimates that net immigration of illegal aliens totaled 7.3 million between FY 2021 and 2024. In the four years prior to this, net migration of illegal aliens was negative. This surge has imposed a significant human cost, with communities across the United States grappling with the consequences of human and drug trafficking. A substantial financial price has also been paid by American taxpayers. Many illegal aliens become eligible for taxpayer-funded welfare programs, costing billions of dollars annually. These benefits – some of which are outright cash payments through the Tax Code or other direct checks – are a significant pull factor for illegal immigration.

Loopholes Expand Eligibility for Welfare Benefits

Illegal aliens are not supposed to be eligible for welfare programs. The 1996 welfare reform law restricted immigrant eligibility for many public assistance programs to only “qualified aliens.” However, the Biden-Harris Administration has abused loopholes to confer “status” to millions of illegal aliens, qualifying them for welfare programs as a part of its broad catch-and-release agenda. Aliens – even those otherwise inadmissible – are provided a reprieve from removal by being granted: parole, asylum, work authorization after applying for asylum, status as Afghan parolees, Ukrainian parolees, Cuban, Nicaraguan, Haitian, and Venezuelan (CNHV) parolees, Cuban/Haitian Entrants, noncitizens granted conditional entry, Deferred Enforced Departure (DED), Iraqi and Afghan special immigrant status, refugee status, Temporary Protected Status (TPS), or withholding of removal by the Administration. All of these categories can become eligible for taxpayer-provided benefits. As a result, illegal aliens can receive welfare benefits from many different public assistance programs, including:
  • Food Stamps (the Supplemental Nutrition Assistance Program, “SNAP”)
  • Child nutrition programs
  • Temporary Assistance for Needy Families (TANF)
  • Supplemental Security Income (SSI)
  • Child Care and Development Block Grant (CCDBG)
  • Earned Income Tax Credit (EITC)
  • Child Tax Credit (CTC)
  • Obamacare Premium Tax Credit
  • Obamacare cost sharing subsidies
  • Medicare
  • Medicaid
  • Children's Health Insurance Program (CHIP)
  • Pell Grants
  • Student loans
  • Head Start
  • Public housing
  • Coronavirus State and Local Fiscal Recovery Fund (SLFRF)

The Cost of Welfare for Illegal Aliens is Estimated to be Billions

Numerous recent studies estimate the fiscal costs of benefits for illegal aliens. The CBO estimated that by FY 2034, outlays for “benefits provided to immigrants in the surge population and their children” will total $177 billion. This includes:
  • $59 billion for Obamacare Premium Tax Credits
  • $43 billion for the EITC and CTC
  • $40 billion for Medicaid and CHIP
  • $15 billion for Food Stamps
  • $13 billion for child nutrition programs
  • $4 billion for SSI
The Federation for American Immigration Reform (FAIR) estimates that federal expenditures on illegal aliens in 2023 totaled nearly $66.5 billion. This includes more than $23 billion in federal medical expenditures and $11.6 billion in welfare benefits from Food Stamps, child nutrition, SSI, and other programs. The Manhattan Institute estimates that that every new illegal immigrant has an average net fiscal burden of about $130,000. The study finds that immigrants without a high school diploma who arrive in the U.S. between the ages of 18 and 24 – the profile “most commonly represented among immigrants who entered the country unlawfully,” – can receive $332,000 in taxpayer-provided benefits over their lifetime, including healthcare and other welfare program benefits. The report also details that “the border crisis is expected to cost $1.15 trillion over the lifetime of the new immigrants who entered the country unlawfully, overstayed a visa, or were paroled.” The Center for Immigration Studies (CSIS) finds that the 1.1 million illegal aliens granted parole by the Biden-Harris Administration between January 2021 and February 2023 may become “qualified aliens” with a $3 billion per year cost in welfare benefits. An estimated 60% of illegal immigrant households currently use at least one welfare program, with an estimated $5,692 in federal benefits received annually. Some benefits, such as the EITC and CTC, provide an estimated $3.8 to $4.5 billion in outright cash payments to illegal immigrants. The House Homeland Security Committee has detailed that Americans have paid billions for hospital expenses, shelter, and the education of the children of illegal immigrants. This included $5.4 billion in “emergency services for undocumented aliens” in FY 2022.

Close the Loopholes and Stop the Billions in Benefits

Securing the border is one of the most important priorities of the American people. The budget reconciliation process will allow Congress and the Trump Administration to take serious steps to crack down on the chaos at the border. This should include closing the loopholes and cutting off the billions in welfare benefits that are spent on illegal aliens. Not only is it commonsense policy to close the loopholes and stem illegal immigration, but it is a fiscally responsible step to stem these costs for the American taxpayer.

Author

Matthew D. Dickerson

Matthew D. Dickerson

Director of Budget Policy

Matthew D. Dickerson is Director of Budget Policy at the Economic Policy Innovation Center (EPIC). Dickerson is recognized as an expert on fiscal policy issues, including the budget, appropriations, and entitlement reform. His articles have been featured in the Wall Street Journal , the Miami Herald , National Review , the Sacramento Bee , the Washington Times , the Baltimore Sun , The Hill , the Washington Examiner , and other outlets. Prior to joining EPIC, Dickerson served as Senior Policy Advisor on the staff of the House Budget Committee, where he helped lead development of the fiscal year 2024 budget resolution. He has a dozen years of experience on Capitol Hill, including as a senior staffer with the Republican Study Committee (RSC), the caucus of conservatives in the House of Representatives. Under four different RSC chairmen, Dickerson held senior level roles including Policy Director and Senior Policy Staff. Additionally, he served as Legislative Director and other policy positions for the late Congressman C.W. Bill Young (R-FL), a former Chairman of the powerful House Appropriations Committee. During his tenure at The Heritage Foundation, Dickerson was Director of the Grover M. Hermann Center for the Federal Budget. In this capacity, he oversaw a team of budget analysts and economists researching diverse subjects including spending, entitlements, budget process, tax, labor, pensions, and infrastructure issues. He has also been a Policy Manager at Americans for Prosperity, where he supervised a team of fellows and analysts covering a variety of federal and state policy issues. Dickerson is a graduate of the College of William and Mary in Virginia and holds a Bachelor of Arts in Government and History.

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