In 2006, Carole Keeton Strayhorn, who was the Texas State Comptroller, initiated an assessment of how undocumented immigrants impact the Texas economy. Her findings revealed that these individuals contributed more economically than they drew in costs from the state. Strayhorn, a Republican, remarked at the onset of her report that it was the first comprehensive financial evaluation of undocumented immigrants’ effect on a state’s budget.
However, it has been 18 years since Texas has conducted a similar analysis or updated Strayhorn’s initial report. Despite this lack of state-level follow-up, various reports from non-profits and academic institutions have echoed the conclusions reached in Strayhorn’s study, emphasizing that undocumented immigrants do not burden state finances as often claimed.
These findings stand in stark contrast to statements made by certain Republican officials in Texas who assert that undocumented individuals impose a significant strain on public resources. For instance, Texas Attorney General Ken Paxton expressed in early 2021 that the cost of illegal immigration is a severe burden on taxpayers, advocating that the state should only accept those who come through legal channels.
Further analyses hint at substantial economic repercussions if aggressive deportation efforts are pursued by the incoming administration. In her report, Strayhorn calculated that the potential removal of 1.4 million undocumented immigrants in Texas would have resulted in a loss of approximately $17.7 billion in gross domestic product (GDP), illuminating the critical role these workers play in various industries.
Juan Carlos Cerda, who is the Texas state director for the American Business Immigration Coalition, emphasized that mass deportations would inflict severe damage on Texas’s economy and family structures, particularly in sectors like construction and agriculture, which rely heavily on immigrant labor.
As President-elect Donald Trump readies to assume office once again, Texas politicians have shown their willingness to assist in implementing his promised immigration policies, which include mass deportations and building a border wall. Texas Land Commissioner Dawn Buckingham went so far as to offer 1,400 acres in the Rio Grande Valley to the federal government for use in deportation activities.
The state of Texas houses about 11% of the nation’s immigrant population, comprising approximately 1.6 million undocumented individuals—making it second only to California in this regard. Strayhorn’s analysis from 2006 indicated that these undocumented Texans contributed around $1.6 billion in state revenue, surpassing the approximate $1.2 billion they received in state services like education and healthcare. The study also mentioned that local governments faced burdens, totaling $1.4 billion, for healthcare and law enforcement costs without receiving state compensation.
Since then, additional studies have reached similar conclusions. A 2016 report by the Perryman Group highlighted that undocumented workers in Texas produced about $11.8 billion after accounting for the state’s expenditures on public services. The report underscored the urgency for policies that maximize economic benefits and minimize potential losses resultant from restrictive immigration measures.
Research scholar José Iván Rodríguez-Sánchez from the Baker Institute at Rice University restated Strayhorn’s findings in 2018, affirming that the economic advantages of undocumented residents outweigh the costs they incur. Rodríguez-Sánchez noted that these individuals are valuable contributors, paying taxes, purchasing homes, and engaging in the economy.
State Sen. César Blanco, representing El Paso, attempted to advocate for regular updates to the economic analysis through legislation in 2015, but his proposal did not make significant progress. He stressed that understanding the contribution of immigrants is vital for lawmakers and described them as crucial to the economic foundation of Texas.
In 2013, Comptroller Glenn Hegar expressed intentions to conduct an updated study or an equivalent review, voicing the necessity for Texans to know the annual costs associated with illegal immigration. However, this promise has not yet come to fruition. A recent request for comments from Hegar’s office went unanswered, and as of 2021, his office indicated to local media that no formal request had been made to undertake the study.
