Immigration

In CBO’s projections, the U.S. population increases from 350 million people in 2025 to 372 million in 2055, and the average age rises. Beginning in 2033, annual deaths exceed annual births, and net immigration accounts for the growth.

CBO periodically issues a compendium of policy options and their estimated effects on the federal budget. This report presents 76 options for altering spending or revenues to reduce federal budget deficits over the next decade.

An increase in immigration over the 2021–2026 period boosts federal revenues as well as mandatory spending and interest on the debt in CBO’s baseline projections, lowering deficits, on net, by $0.9 trillion over the 2024–2034 period.

Immigration increases total economic output, although not necessarily output per person. It also affects the federal budget through the taxes that foreign-born people pay and the government programs in which they participate.

CBO issues a volume that contains short descriptions of 59 policy options that would each reduce the federal budget deficit by less than $300 billion over the next 10 years.

In 2018, 46 million people living in the United States—or 14 percent of the population—had been born in other countries. CBO examines the employment and earnings of men and women by their legal immigration status, level of education, and birthplace.

Immigration increases total economic output, though not necessarily output per capita. It also affects the federal budget through the taxes that foreign-born people pay and the government programs in which they participate.

Proposals to modify U.S. immigration policy vary greatly in terms of their potential impact on the federal budget. CBO details the factors the agency considers when estimating the budgetary effects of proposed changes to immigration policy.