WASHINGTON—The Trump administration is warning that immigration and spending proposals backed by the Democratic Socialists of America could impose substantial costs on federal taxpayers, citing a new White House economic report that estimates the broader policy agenda would add approximately $49 trillion to federal deficits over the next decade.
The Council of Economic Advisers released its report, The Real Cost of Socialism in America, examining the potential fiscal effects of proposals involving immigration, health care, education, housing and other federal programs.
The administration estimates that policies ending immigration detention and deportations while granting broad legal status to undocumented immigrants would increase federal costs by approximately $527 billion over 10 years, with a projected range of $440 billion to $613 billion.
The larger $49 trillion estimate covers seven policy areas associated with the Democratic Socialists of America, rather than immigration proposals alone. Most of that projected cost comes from a proposed single-payer health care system, which the administration estimates would add $47.4 trillion to federal spending over a decade.
The report’s findings are based on the administration’s economic assumptions and projections, not spending that has already occurred or legislation enacted by Congress.
According to the Council of Economic Advisers, the estimated net lifetime fiscal cost associated with an undocumented immigrant is $166,716, producing a projected aggregate cost of $1.4 trillion to $1.9 trillion for the existing undocumented population.
The administration also estimates that granting broad legal status to undocumented immigrants would increase annual federal spending on several assistance programs.
Under the report’s projections, Supplemental Nutrition Assistance Program spending would increase by $3.6 billion to $4.7 billion annually, federal housing assistance would rise by $2.3 billion to $3 billion, and Medicaid spending would increase by $30 billion to $40 billion.
Together, those programs would generate an estimated $36 billion to $47 billion in additional annual federal expenditures, or $361 billion to $475 billion over a decade.
The estimates depend on assumptions about future eligibility, enrollment and participation in federal programs. They do not represent independently established costs of any enacted immigration legislation.
The White House has used the findings to draw a contrast between President Donald Trump’s immigration enforcement policies and proposals supported by progressive Democrats.
In an October 15 statement, the administration said its border enforcement efforts had produced substantial reductions in illegal crossings and expanded immigration arrests and deportations.
The Department of Homeland Security reported 16 consecutive months without releases of undocumented migrants into the United States at the border. The administration also said southwest border apprehensions had fallen 94% in August compared with the monthly average during former President Joe Biden’s administration.
The White House further reported that more than three million undocumented immigrants had departed the country since Trump returned to office, including both deportations and estimated voluntary departures.
Those figures were presented by the administration as evidence of its enforcement efforts. The economic report’s projections, however, address hypothetical changes in immigration and domestic policy rather than the direct financial results of current enforcement operations.
The report examines proposals associated with the Democratic Socialists of America, a political organization whose platform is not identical to that of the national Democratic Party. Its estimates therefore should not be interpreted as the fiscal effects of a single legislative agenda endorsed by all Democrats.
The administration’s broader analysis estimates that implementing the seven costed proposals would increase federal deficits by approximately $49 trillion between 2027 and 2036, after accounting for projected revenue from a proposed wealth tax.
That represents approximately $355,000 per American household, according to the Council of Economic Advisers.
The report adds to the national debate over immigration enforcement, federal benefits and government spending as the Trump administration continues efforts to expand deportations and restrict unauthorized immigration.