The Positive Economic Impact of Refugees and Asylees in the U.S.
At HMI, we have always believed in the immense potential of refugees and asylees to contribute positively to our communities. Recent data from a federal study reinforces our belief, showing that these individuals not only enrich our society culturally but also provide significant economic benefits. Over a 15-year period, refugees and asylees have proven to be a net positive for the U.S. government, generating more revenue than the government spends on their support. Let's break down these findings and understand their implications.
Welcoming Refugees and Asylees: A Humanitarian and Economic Win
Between 1990 and 2022, the United States welcomed over 2.1 million refugees and granted asylum to more than 800,000 individuals (Office of Immigration Statistics 2023). While the primary purpose of granting protection is humanitarian, it’s essential to recognize the economic impact of these populations. Federal and state governments spend considerable resources to support the resettlement and integration of refugees and asylees. Over time, these individuals make significant contributions to federal, state, and local government revenues.
Net Positive Fiscal Impact
From 2005 to 2019, the net fiscal impact of refugees and asylees was $123.8 billion. This means that after accounting for all the government spending on services for these individuals, there was still a significant surplus. Specifically:
The federal government saw a net benefit of $31.5 billion.
State and local governments collectively benefited by $92.3 billion.
This positive net impact underscores the fact that refugees and asylees contribute more to the economy than they receive in public assistance. In simpler terms, they are not a burden but a valuable asset to our nation.
Revenue Contributions
Refugees and asylees generated an impressive $581 billion in tax revenue over the 15-year period. This includes:
$363 billion to the federal government through payroll, income, and excise taxes.
$218 billion to state and local governments through income, sales, and property taxes.
Including immediate family members, the total revenue contribution rises to $739 billion. These contributions are crucial for funding essential public services like education, healthcare, infrastructure, and public safety. By paying taxes, refugees and asylees support the very systems that help sustain and improve our communities.
Government Spending on Refugees and Asylees
It is important to acknowledge that the government does spend on services for refugees and asylees through organizations like HMI. Over the same 15-year period, the total expenditure was $457.2 billion. This spending is divided into:
$331.5 billion (72.5%) by the federal government.
$125.7 billion (27.5%) by state and local governments.
Including immediate family members, the expenditure totals $723.4 billion. These investments cover a range of services, including housing, healthcare, education, and employment assistance, which are essential for helping newcomers integrate and thrive.
A Smart Investment
Despite the significant expenditure, the net positive impact and substantial tax contributions highlight that supporting refugees and asylees is a smart investment. For every dollar spent, the government receives more in return through economic participation and tax revenue.
Another critical finding is that refugees and asylees with 10 or more years of residency have approximately the same level of income as the total U.S. population. This indicates successful economic integration, where refugees and asylees are contributing to the economy on par with their U.S.-born counterparts.
Policy and Community Implications
These findings have important implications for policymakers and community organizations like HMI. They provide strong evidence to support policies that facilitate the resettlement and integration of refugees and asylees. By continuing to invest in these individuals, we can ensure they have the resources they need to succeed, which in turn benefits our entire society.
We are dedicated to supporting refugee newcomers and advocating for policies that recognize their value. We see firsthand the resilience, determination, and contributions of these individuals. The data reinforces what we already know: refugees and asylees are not just survivors; they are thrivers who enrich our communities economically, culturally, and socially.
Conclusion
The positive fiscal impact of refugees and asylees is clear. They contribute significantly more in taxes than they receive in public assistance, resulting in a net economic benefit for the country. These findings highlight the importance of supporting refugees and asylees, not only as a moral and humanitarian obligation but also as a beneficial economic strategy.
At HMI, we will continue to support these individuals and advocate for their integration into our communities. By doing so, we not only help them build better lives but also strengthen our society as a whole.
We invite you to join us in our mission to support refugee newcomers. Together, we can create a welcoming environment that acknowledges and celebrates their contributions to our society. Visit our website to learn more about our programs and how you can get involved.
See the full Report from the Department of Health and Human Services here: https://aspe.hhs.gov/reports/fiscal-impact-refugees-asylees