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Conclusion
Illegal immigrants are a significant net fiscal drain -- paying less in taxes than they use in public
services. The primary reason they create more in costs than they pay in taxes is their relative low
levels of education. Based on prior research, 69 percent of adult illegal immigrants have no
education beyond high school, compared to 35 percent of the U.S.-born. As a result, they tend to
earn modest wages and make modest tax contributions even when income and payroll taxes are
taken out of their pay. This fact, coupled with the relatively heavy demands they make on public
coffers -- especially for education, health care, and means-tested programs -- is the reason they
are a net fiscal drain.
We estimate that 59 percent of illegal immigrant households use one or more major welfare
programs, costing roughly $42 billion a year. At the local level, the largest single cost is for
public education. We estimate the cost of educating the children of illegal immigrants, most of
whom are U.S.-born, totals $69 billion per year. While illegal immigrants often receive other
services for their U.S.-born children, even when we estimate the net fiscal impact of just the
illegal immigrants themselves, excluding their U.S.-born children, we still find they create a
lifetime net fiscal drain of $68,000 on average (taxes paid minus benefits received).