Families Face $2,150 Bill from Trump's Immigration Policies—Study

Newsweek

2 days ago

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Families could see their annual expenses rise by $2,150 due to President Donald Trump's hardline deportation policies, according to a new report by FWD.us.
The additional costs stem from stricter rules, including work permit cancellations, mass deportations, and reduced legal immigration, which are expected to drive up prices for everyday goods and services nationwide.
An expert told Newsweek that removing immigrant workers leads to shortages in goods and services, which in turn pushes prices higher.
Why It Matters
Trump vowed to conduct the largest mass deportation effort in United States history as part of his hardline immigration policies. However, the proposal has raised concerns about its impact on the U.S. economy.
Agricultural production could decline by $30 billion to $60 billion if Trump's deportation policy is fully enacted, according to the American Business Immigration Coalition.
A reduced labor force in sectors like agriculture and construction leads to supply shortages and higher labor costs, which are then passed on to consumers.
Meanwhile, the American Immigration Council projects that the president's mass deportation policy could slap a one-time cost of $315 billion.
Stock image of U.S. currency.
Stock image of U.S. currency.
Soeren Stache/picture-alliance/dpa/AP Images
What To Know
The cancellation of work permits for individuals with Temporary Protected Status, Deferred Action for Childhood Arrivals (DACA), and other protected statuses could result in nearly 2.6 million workers leaving the labor force. This includes significant numbers in the agriculture, construction, and hospitality sectors, leading to potential shortages and increased prices in these industries.
"The administration has been warned repeatedly that the immigration crackdowns would harm the whole economy. This report starts to quantify the exact costs to American families," Frank Knapp, managing director of the Secure Growth Initiative, a coalition of small businesses advocating for comprehensive immigration reform that grows the economy, told Newsweek.
"When immigrant labor is taken or made afraid to go to their jobs, goods and services become in short supply thus driving up cost," Knapp said.
The projected $2,150 annual increase in household expenses is comparable to the average American family's grocery bill for three months or their combined electricity and gas bills for the entire year. With many families already struggling to save, these additional costs could further strain household budgets.
According to the FWD.us report, the average American grocery bill could increase from $165 to $195 per week over the next four years. In the same period, the median price of a new home is expected to rise from $420,000 in 2024 to $468,000 by 2028.
Democratic lawmakers criticized Trump's immigration policies, emphasizing the need for approaches that support economic growth and family unity rather than causing fear and hardship.
"We need policies that grow our economy and keep families together, not ones that terrorize our communities and make it harder for everyone to make ends meet," said Democratic Senator Alex Padilla of California.
"At a time when New Mexico families are already burdened by high costs, this report underscores how the administration's immigration policies risk further straining our economy and are driving up prices," Senator Ben Ray Luján, a Democrat from New Mexico, said in a statement.
It comes after Federal Reserve Chair Jerome Powell, speaking at a Congressional hearing, said that the Trump administration's deportation policies have contributed to the slowdown in U.S. economic growth. His remarks align with economists' concerns that targeting the removal of workers through immigration enforcement would impact the economy negatively.
What People Are Saying
Frank Knapp, managing director of the Secure Growth Initiative, told Newsweek: "Small businesses are also the victims of this immigration chaos. Not only are their workers missing, immigrant families have pulled back on consumer spending with their local small businesses. Congress needs to take charge and create a pathway for the undocumented and all the threatened immigrant groups to earn a permanent legal status. Small businesses need the labor of immigrants regardless of their legal status."
California Senator Alex Padilla, in a statement: "The Trump administration's mass deportation agenda and push to strip work permits from hardworking immigrants will not just tear families apart, it will raise costs for every American. Immigrants are essential to our economy, and removing them from our communities will make groceries, housing, and everyday services more expensive, especially for working families."
New Mexico Senator Ben Ray Luján, in a statement: Revoking work authorizations, pursuing mass deportations, and instilling fear in communities are not solutions—they are ineffective and this report details how they are harmful to the economy. I've long stood with our immigrant communities and will continue advocating for policies that are smart, equitable, and keep New Mexicans safe."
FWD.us President Todd Schulte, in a statement: "If we want to stabilize the costs of goods and services for Americans while also uphold the best of American family values, Congress and the administration should maintain work permits for temporarily protected immigrants, stop mass deportation plans, and find new pathways to legalize immigrants, while also investing in the full functioning of our legal immigration system."