The sums are mind-boggling and this needs to be addressed ASAP!
The state of California’s annual spending related to undocumented immigrants is a subject of varying estimates, with recent data from the state’s 2024-2025 budget highlighting specific costs such as $9.5 billion for healthcare alone. Independent analyses have estimated the total annual cost to California taxpayers (state and local, net of taxes paid) to be as high as nearly $31 billion in 2022 [1].
The difference in figures depends on which costs and benefits are included (e.g., K-12 education, incarceration, general government services, public assistance programs, etc.) and how tax contributions by undocumented immigrants are factored in.
Key Expenditure Areas & Estimates
- Healthcare (Medi-Cal): This is one of the largest and most widely reported expenses. California became the first state to offer comprehensive, taxpayer-funded health coverage to all income-eligible undocumented immigrants through its Medi-Cal program in 2024 [2].
- The state’s current 2024-2025 budget allocates $9.5 billion (total funds, with $8.4 billion from the general fund) for this coverage.
- This cost has been higher than initial estimates due to higher-than-anticipated enrollment and pharmacy costs. The 2025-26 budget includes about $12.4 billion for their care.
- K-12 Education: Because U.S.-born children of undocumented immigrants are U.S. citizens and entitled to public education, this is a significant expense. One estimate from a 2023 report calculated the annual cost for K-12 outlays and supplemental English instruction at over $14.5 billion.
- Incarceration: The net annual cost of incarcerating deportable aliens (after limited federal reimbursements) has been estimated at nearly $1.5 billion in prior reports.
Net Fiscal Impact and Offsetting Tax Contributions
Many studies on the fiscal impact of undocumented immigration [2] also include the taxes paid by this population, which helps to offset the costs of public services:
- A 2024 report from the California Budget & Policy Center estimated that undocumented Californians paid nearly $8.5 billion in state and local taxes in 2022, including sales, excise, property, and income taxes [3].
- The Federation for American Immigration Reform (FAIR) report that found a gross cost of $31 billion to the state, also noted that when taxes paid are considered, the net fiscal burden on California taxpayers was an estimated $22 billion in 2022 [3].
The precise “how much” is highly debated and varies based on the methodology and political perspective of the source. However, state budget data confirms billions of dollars in annual spending on specific programs like healthcare.
References:
[1] FAIR: Illegal Immigration Costs California Taxpayers Nearly $31 Billion a Year – Mar 08, 2023, prnewswire.com
[2] California spending $9.5B on healthcare for undocumented immigrants this year – Feb 12, 2025, thecentersquare.com
[3] Cost of undocumented healthcare in California is billions over estimates, pressuring Democrats to consider cuts – March 13, 2025, latimes.com
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