Quick Bytes
- U.S. refugees and asylees contribute significantly more in taxes than they cost in government services.
- From 2005 to 2019, the net fiscal gain was $123.8 billion, with federal and state/local governments benefiting.
- Long-term refugees and asylees show comparable income and higher employment rates to U.S. averages after 10 years.
Summary
A recent study by the U.S. Department of Health and Human Services (HHS) has revealed that refugees and asylees have made a substantial positive fiscal impact on the American economy over a 15-year period. The report, which assessed the contributions of refugees and asylees from 2005 to 2019, found that these groups paid $123.8 billion more in taxes than the cost of government services they used, resulting in a significant net fiscal gain for both federal and state/local governments.
Refugees and asylees contributed approximately $363 billion in federal taxes and $218 billion in state and local taxes. Despite initial lower employment levels and household incomes upon arrival, after a decade in the U.S., refugees and asylees tend to achieve income levels and employment rates that match or exceed the national average. The study also highlighted that the average annual household income for refugees and asylees after 10 years is roughly $59,000, aligning with the U.S. resident average.
The HHS Secretary Xavier Becerra emphasized the importance of this data-driven evidence, suggesting that it should be a key reference for policymakers regarding refugee resettlement. The report also opens avenues for future research into the impact of different refugee and asylee groups. This comes in contrast to previous administration efforts to portray refugees as a fiscal burden, which were contradicted by their own 2017 study showing a net fiscal gain from refugees.
With the global refugee population having more than tripled in the last decade, the U.S. has seen a decline in the number of refugees admitted. The current administration has utilized humanitarian parole to admit displaced individuals from Afghanistan and Ukraine, raising questions about the adequacy of the U.S. refugee program. The HHS study underscores not only the humanitarian but also the economic rationale for supporting and expanding the U.S. refugee program.
For more detailed information, readers can access the full report through the HHS website.
