The aftermath of a record-high influx of migrants coming into the country via the southern border is straining budgets in some of the nation’s big cities — and putting pressure on the federal government to chip in.
An analysis from S&P Global Ratings found that of the 100,000 immigrants Texas has transported since 2022, 84% were sent to Denver, Chicago and New York.
Denver, which has more migrants per capita than any other U.S. city, has tapped into 2024 saving and is pulling at least $5 million from its budget to cover services for them — with more reductions likely, Axios reported.
As a result, the city cut hours at departments of motor vehicles and recreational centers and paused hiring for some city staff. Denver Mayor Mike Johnston told NPR the city, with a population a little over 700,00, has had more than 40,000 migrants arrive over 2023, and that he’ll start decreasing the number of new arrivals who’ll be served.
A federal survey has found refugees and asylum seekers have historically had a net positive fiscal impact in the United States, generating nearly $124 billion in federal, state and local government revenues between 2005 and 2019.
In Chicago, Mayor Brandon Johnson has allocated around $150 million for immigrants in his 2024 budget, but a recent agreement with state and county leaders demands another $70 million, Axios reported.
But the mayor hasn’t yet allocated that money amid accusations from some Black constituents and leaders that the new arrivals are being prioritized over existing local communities.
Meanwhile, New York has implemented cost-saving measures at its humanitarian relief centers and is renegotiating vendor contracts, the S&P report noted. The city is now reporting it dropped cost estimates for sheltering new arrivals to $4.2 billion and $4.9 billion for fiscal years 2024 and 2025, respectively.
Yet, Axios noted, there's little evidence immigration reform is on the horizon from Capitol Hill or the White House.