TRENTON, N.J. — A new policy brief from the America First Policy Institute claims New Jersey spent $7.3 billion on services for an estimated 894,000 illegal immigrants, citing costs tied to health care, education, welfare, and law enforcement. The figure is based on a report from New Jersey Assembly policy staff and is presented as part of a broader critique of federal immigration policy under the Biden administration.
The report, authored by Richard J. Maher, asserts that New Jersey, like many states, is facing a growing financial burden from illegal immigration, fueled by rising border crossings and federal policy rollbacks since 2021. The study ties much of the spending surge to the repeal of Trump-era initiatives such as the “Remain in Mexico” policy and the expansion of humanitarian parole.
Nationally, the Federation for American Immigration Reform (FAIR) estimated the combined cost of illegal immigration to federal, state, and local governments at $150.7 billion as of early 2023, with $115.6 billion of that burden absorbed by state and local jurisdictions. FAIR’s calculations include expenditures on education, public safety, medical care, and welfare services—also extending to U.S.-born children of illegal immigrants.
According to FAIR’s breakdown, between fiscal years 2020 and 2022, states spent:
- $73.2 billion on education
- $21.8 billion on law enforcement
- $18.6 billion on medical care
- $2 billion on welfare services
The AFPI brief also references a failed proposal by New Jersey officials to issue $500 checks to tax filers using Individual Taxpayer Identification Numbers, which are frequently used by undocumented residents. The plan was dropped from the budget after public criticism.
In response to rising costs, the brief advocates for policy changes such as mandatory use of E-Verify, international wire transfer fees, and requiring hospitals to ask patients about immigration status when billing Medicaid—measures already implemented in Florida and Texas. It also highlights Louisiana’s executive order directing state agencies to assess and disclose the financial impacts of illegal immigration.
AFPI’s analysis concludes by urging states to adopt stricter measures, independent of federal action, to control costs and limit the economic incentives for illegal immigration.
A recent policy report claims New Jersey taxpayers are footing billions in costs linked to illegal immigration, fueling renewed debate over state and federal enforcement policies.