News
Deporting millions of immigrants would shock the US economy, increasing housing, food and other prices
In 2025, the Trump administration plans mass deportations, with significant economic risks, including rising food and housing costs, due to reliance on immigrant workers in key industries.
Francisco I. Pedraza, Arizona State University; Jason L. Morín, California State University, Northridge, and Loren Collingwood, University of New Mexico
One of President Donald Trump’s major promises during the 2024 presidential campaign was to launch mass deportations of immigrants living in the U.S. without legal authorization.
The U.S. Immigration and Customs Enforcement agency has said that, since January 2025, it is detaining and planning to deport 600 to 1,100 immigrants a day. That marks an increase from the average 282 immigration arrests that happened each day in September 2024 under the Biden administration.
The current trend would place the Trump administration on track to apprehend 25,000 immigrants in Trump’s first month in office. On an annual basis, this is about 300,000 – far from the “millions and millions” of immigrants Trump promised to deport.
A lack of funding, immigration officers, immigration detention centers and other resources has reportedly impeded the administration’s deportation work.
The Trump administration is seeking US$175 billion from Congress to use for the next four years on immigration enforcement, Axios reported on Feb. 11, 2025.
If Trump does make good on his promise of mass deportations, our research shows that removing millions of immigrants would be costly for everyone in the U.S., including American citizens and businesses.
Food costs will increase
One important factor is that mass deportations would weaken key industries in the U.S. that rely on immigrant workers, including those living in the U.S. illegally.
Overall, immigrants without legal authorization make up about 5% of the total U.S. workforce.
But that overall percentage doesn’t reflect these immigrants’ concentrated presence within various industries. Approximately half of U.S. farmworkers are living in the country without legal authorization, according to the U.S. Department of Agriculture.
Some of these immigrant farmworkers are skilled supervisors who make decisions about planting and harvesting. Others know how to use and maintain tractors, loaders, diggers, rakers, fertilizer sprayers, irrigation systems, and other machines crucial to farm operations.
If those workers were to be suddenly removed from the country, Americans would see an increase in food costs, including what they spend on groceries and at restaurants.
With fewer available workers to pick fruits and vegetables and prepare the food for shipment and distribution, the domestic production of food could decrease, leading to higher costs and more imports.
National estimates of the restaurant and food preparation workforce, meanwhile, indicate that between 10% and 15% of those workers are immigrants living in the U.S. illegally.
Past state-level immigration enforcement policies offer an idea of what could happen at the national level if Trump were to carry out widespread deportations.
For example, a 2011 Alabama law called HB-56 directed local police officers to investigate the immigration status of drivers stopped for speeding. It also prohibited landlords from renting properties to immigrants who do not have legal authorization to work or live in the country. That law and its resulting effects prompted some Alabama-based immigrant workers to leave the state following workplace raids.
Their departure wound up costing the state an estimated $2.3 billion to $10.8 billion loss in Alabama’s annual gross domestic product due to the loss of workers and economic output.
Other industries that rely on immigrants
Part of the challenge of mass deportations for industries like construction, nearly a quarter of whose workers are living without legal authorization, is that their workforce is highly skilled and not easily replaced. Immigrant workers are particularly involved in home construction and specialize in such tasks as ceiling and flooring installation as well as roofing and drywall work.
Fewer available workers would mean slower home construction, which in turn would make housing more expensive, further compounding existing problems of housing supply and affordability.
Shocks from deportations would also slow commercial and public infrastructure construction. Six construction workers, for example, died in April 2024 in the sudden collapse of the Baltimore Key Bridge in Maryland. All of them were Latino immigrants living in the U.S. without legal documentation.
Examining the arguments
Trump administration officials and other politicians have argued that deporting large numbers of immigrants would help the country save money, since fewer people will use federal and state funds by attending public schools or receiving temporary shelter.
Trump said in November 2024 that there is “no price tag” for large-scale deportations.
“It’s not a question of price tag,” Trump said. “We have no choice. When people have killed and murdered, when drug lords have destroyed countries, and now they’re going to go back to those countries because they’re not staying here,” Trump told NBC News.
Trump and his supporters also argue that deporting immigrants would mean more jobs for American workers.
But there is compelling evidence to the contrary.
First, immigrants are filling labor shortages and doing jobs that many Americans don’t want to do, ones that might be unsafe or poorly paid.
Even if Americans were willing to do those jobs, there simply aren’t enough Americans in the workforce to fill existing labor vacuums, let alone an enlarged one following deportations.
Second, for employers, having fewer workers in the country translates into higher wages, which in turn means less capital to adapt and grow. For businesses based on consumer debt – think mortgages, car loans and credit cards – deportations would disrupt the financial sector by removing responsible borrowers who make consistent payments.
Third, immigrants living without legal documentation in the U.S. pay more than $96 billion in federal, state and local taxes per year and consume fewer public benefits than citizens.
Immigrants without legal authorization are not eligible for Social Security benefits and can’t enroll in Medicare or many other safety net programs, such as the Supplemental Nutrition Assistance Program.
The bottom line
In other words, people who are living and working in the U.S. without legal authorization are helping to pay, through taxes, the costs of caring for Americans as they age and begin to draw on the nation’s retirement and health care programs.
The burden from recent inflation notwithstanding, an economy supported by immigrants living illegally in the U.S. protects Americans.
The U.S. would be unable to dodge the economic shocks and high costs that mass deportations would bring about.
Francisco I. Pedraza, Professor of political scinece, Arizona State University; Jason L. Morín, Professor of Political Science, California State University, Northridge, and Loren Collingwood, Associate Professor of political science, University of New Mexico
This article is republished from The Conversation under a Creative Commons license. Read the original article.
The Knowledge
Where Does Federal Money Go? The Biggest Costs Behind the Budget
Where does federal money go? Part two of our National Debt Explained series examines the biggest expenses in the 2025 budget and how spending connects to government borrowing.
The Knowledge | National Debt Explained, Part 2
When discussing debt, ask: Who borrowed the money? That question helps distinguish a family’s finances from the federal budget. Our first episode explained why your credit card balance is separate from the national debt. Now comes the next question: What does the federal government spend money on?
Much of it pays for retirement benefits, health coverage, national defense, public services, and interest on previous borrowing.
Social Security was the largest individual program in fiscal year 2025, costing approximately $1.6 trillion. But combine the major health care programs—including Medicare, Medicaid, and health insurance subsidies—and their spending reached about $1.8 trillion, exceeding Social Security alone. cbo.gov
The figures below cover October 1, 2024, through September 30, 2025.Major expense FY 2025 spending What it supports Social Security About $1.6 trillion Retirement, survivor, and disability benefits Medicare, net $988 billion Health coverage for older adults and certain people with disabilities Net interest $970 billion Cost of servicing publicly held federal debt, after subtracting interest income Discretionary defense $893 billion Military personnel, operations, equipment, and research Medicaid $668 billion Federal contribution toward health coverage and care for eligible people
These are selected expenses, not the entire budget. Medicare spending is shown after premiums and other offsetting receipts. The combined health care total already includes Medicare and Medicaid, so it should not be added to those rows. cbo.gov
The government also supports veterans’ health care, transportation, education, housing assistance, courts, law enforcement, scientific research, disaster response, and environmental protection. Nondefense discretionary spending totaled approximately $980 billion in 2025, covering many of these services. Some funding for these areas falls elsewhere in the budget. cbo.gov
Federal spending falls into three broad groups:
- Mandatory spending: Payments governed by existing eligibility rules and benefit formulas, including Social Security and major health programs.
- Discretionary spending: Funding lawmakers control through appropriations legislation, including most defense spending and many public services.
- Net interest: The expense of servicing publicly held federal debt, minus government interest income. cbo.gov
Interest deserves attention because it pays for borrowing already undertaken. In 2025, net interest exceeded discretionary defense spending. Congressional Budget Office
A program’s cost does not automatically translate into an equal increase in national debt. Taxes and other receipts finance much of federal spending. Social Security and Medicare’s hospital insurance program receive dedicated payroll taxes, while Medicare also collects premiums.
In 2025, federal spending totaled approximately $7 trillion, compared with $5.2 trillion in revenue. The roughly $1.8 trillion shortfall was the deficit, requiring borrowing. Understanding national debt therefore means examining both what government spends and what it collects. cbo.gov
Explore more explanations behind the headlines at STM Daily News, home of The Knowledge.
Sources for this episode
- CBO: The Federal Budget in Fiscal Year 2025 — Overview of spending, revenue, deficits, and debt interest.
- CBO: Mandatory Spending in Fiscal Year 2025 — Breakdown of Social Security, Medicare, Medicaid, and other benefit programs.
- CBO: Discretionary Spending in Fiscal Year 2025 — Defense spending and services including transportation, education, and veterans’ health care.
- CBO: Overview of the FY 2025 Budget Infographics — Highlights the largest expenses and broader budget trends.
Related reading
- U.S. Treasury: Understanding the National Debt — What federal debt represents and how borrowing works.
- U.S. Treasury: Understanding the National Deficit — Explains the difference between an annual deficit and accumulated debt.
- U.S. Treasury: Federal Spending — Additional context about where federal money goes.
Daily News
Whose Debt Is the National Debt?
The national debt isn’t Americans’ credit card balances added together. This simple explainer separates federal borrowing from household debt and explains the difference between debt and a deficit.
Last Updated on October 11, 2026 by Daily News Staff
The Knowledge | STM Daily News
When you hear “national debt,” do you picture everyone’s credit card balances added together? The name can create that impression, but the national debt and household debt measure different borrowing.
The U.S. national debt is money the federal government owes. Your personal credit card balance is not included.
Federal debt versus household debt
The Treasury defines national debt as the federal government’s total outstanding borrowing accumulated over the country’s history. Household debt covers borrowing by individuals and families, including mortgages, credit cards, auto loans, and student loans.
|Type of debt |Who borrowed? |Examples |
|————–|————————|————————————————–|
|National debt |Federal government |Outstanding Treasury securities |
|Household debt|Individuals and families|Credit cards, mortgages, auto loans, student loans|
Putting a $500 purchase on your credit card increases your personal balance. It does not add $500 to the national debt.
How does the national debt grow?
When federal spending exceeds tax collections and other revenue, the government runs a budget deficit. Treasury sells securities to borrow money to cover the gap.
Consider a simplified, hypothetical example: the government collects $5 trillion and spends $6 trillion in one year. That leaves a $1 trillion deficit requiring financing.
A deficit measures a shortfall over a period, usually a year. Debt measures outstanding borrowing accumulated over time. Repeated deficits generally increase that debt. Interest on existing borrowing is also a federal expense.
Does paying off your credit card reduce the national debt?
Paying off a card reduces what you owe your lender. It does not directly repay Treasury borrowing. Household debt and government debt can influence the same economy, but they remain separate obligations.
When discussing debt, ask: Who borrowed the money? That one question helps distinguish a family’s finances from the federal budget.
Find more explanations of the ideas behind the headlines at STM Daily News, home of The Knowledge.
Sources
● U.S. Treasury: Understanding the National Debt
● U.S. Treasury: Understanding the National Deficit
● Federal Reserve Bank of New York: Household Debt and Credit Report
Science
October Meteor Showers Give Phoenix Skywatchers a Reason to Look Up
Phoenix skywatchers have several chances to catch October’s meteor showers. Here’s when to watch the Taurids and Orionids—and how moonlight affects the view.
Last Updated on October 10, 2026 by Daily News Staff
PHOENIX — October is bringing several opportunities to spot shooting stars over the Valley, with the Draconids reaching their October 8–9 peak and more meteor activity ahead.
The Draconids remain active through October 10, although viewers should expect a light display as the peak passes. Under favorable conditions, the shower typically produces only a handful of meteors per hour. timeanddate.com
Next, the Southern Taurids have an annual activity peak around October 14. Known for occasional bright fireballs, the shower continues into November. The stronger Orionids peak on the night of October 21 into the morning of October 22, typically producing 10–20 meteors per hour under dark skies. A bright Moon will interfere with this year’s display. American Meteor Society
The Orionids originate from debris left by Halley’s Comet. For Phoenix viewers, the best opportunity will be after moonset and before dawn, weather permitting. City lights will further reduce the number visible. amsmeteors.org
NASA recommends finding a viewing area away from streetlights, allowing about 30 minutes for eyes to adjust, and watching a broad stretch of sky. No telescope is needed—just a comfortable chair and patience. NASA Science
ECurious about what’s happening above us? Explore more space stories and science explainers in The Knowledge at STM Daily News.xplore more space, science and everyday
