Is Illinois’ Spending on Illegal Immigrants a Cautionary Tale?

How much are illegal immigrants costing taxpayers? Across the country, red and blue states are spending significant sums of taxpayer dollars on people residing in the US illegally, whether housing rebates or health care. The federal government is $32 trillion in the red, while states and municipalities are doing everything to reverse their shortfalls. Illinois’ latest public program boondoggle for illegal immigrants might be a cautionary tale for the rest of the nation.

Illinois Busts Budget for Illegal Immigrants

In May 2020, Illinois became the first state to offer Medicaid-type coverage for non-citizen seniors over 65. Proponents projected it would cost about $2 million annually, a minuscule percentage of the broader $40.6 billion budget. Three years later, it has been learned that the Health Benefits for Immigrant Seniors program is expected to cost nearly $1 billion in the upcoming fiscal year.

This was unsurprising for a couple of reasons. The first is that the program has been expanded twice, with officials lowering the age limit to 55 in 2021 and 42 in 2022. The second is that history has shown that many government programs rarely come in under or at budget. But, of course, lawmakers have yet to learn from their fiscal errors because another blunder in the making is reportedly in committee.

A Democrat-sponsored bill would add illegals 19-41 to the Medicaid-style program. It is predicted that this would cost $280 million (double this figure, and it will likely be far more accurate). This is in addition to the Medicaid coverage for all undocumented children implemented in the mid-2000s.

Democrats assert that this is a more fiscally responsible approach because illegal immigrants will not be applying pressure on emergency room visits. But Republicans purport that pausing and auditing the current program would be prudent. “We haven't seen the full magnitude of what the liability could be for this program,” state Rep. Ryan Spain (R-Peoria) told reporters at a news conference. “And you know, this is a large country where people are moving to different areas based on what benefits may be available to them. So, we're just scratching the surface of what could be our future unfunded liability in this area.”

Illinois currently faces a debt of about $65 billion, a budget deficit of at least $482 million, and an unfunded pension liability of $533 billion.

A Cautionary Tale

It is no secret that other states have been showering illegal immigrants with taxpayer money. During the coronavirus pandemic, New York committed more than $2 billion to undocumented immigrants. The scheme saw the Empire State providing one-time payments of up to $15,600 to undocumented folks. This occurred despite multi-billion-dollar budget deficits. Plus, officials have offered a plethora of other goodies to illegals, like driver's licenses. The fun does not stop here, as Mayor Eric Adams has proposed sending illegal migrants to college for “free” – with taxpayers covering the costs.

In recent years, California has regularly extended its public benefits to undocumented immigrants, regardless of their age, from food assistance to comprehensive health coverage. "We’re making sure that universal access to health care coverage becomes a reality here in California, and this expansion has gotten us one step closer – more than a quarter million undocumented Californians aged 50 and older now have good, quality health care,” said Governor Gavin Newsom (D) in an October 2022 announcement. The Golden State is estimated to have a $25 billion deficit next year.

From the west coast to the eastern seaboard, state governments have been giving a diverse array of benefits and services to non-citizens, like driver's licenses (Massachusetts), housing assistance (Colorado), and health insurance (Washington State). Texas also spends an estimated $2 billion a year on illegals for such expenses as education, health care, and incarceration. Overall, according to the Federation for American Immigration Reform, US taxpayers spend about $151 billion per year to provide services and benefits to illegal aliens.

Illegal Immigration Is All Economics

The border crisis the US is facing is an issue of economics. It always has been. Students in Econ 101 will learn that when you subsidize something, you get more of it. It is the Cobra Effect. In India, Delhi faced an invasion of cobras. Officials thought offering a bounty would eradicate the growing population. At first, it was a success. However, individuals began raising cobras in their homes to kill and receive benefits. Once the program was abolished, households released the cobras into the wild, resulting in the problem never being resolved. Today, politicians and bureaucrats subsidize illegal immigration by signing off on exorbitant benefits that would be unheard of in many South American nations. Washington or border states could erect a wall between the US and Mexico, but the entrepreneurial spirit will be channeled to access free stuff. Perhaps a welfare wall would be a superior alternative.