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Although over a million immigrants become permanent residents of the U.S each year
(Huennekens 1), this number is currently declining, due to various policies being proposed and
adapted by Congress and the Trump administration. One of these laws, namely the public charge
law, alters the criteria for those obtaining legal and permanent status in the U.S. This legislation
was introduced in October of 2018, and received public input until December 10th. Although not
officially passed into statute, the public charge law represents a step by the current
administration to limit those who they believe will become financially dependent on the
government from becoming citizens of the U.S. On face value, restricting legal immigration
through the public charge law will reduce government spending on various assistance programs,
but the overall economic implications are much more negative; the change will not only result in
a decrease of government revenue in the form of taxes, but also will increase overall healthcare
costs for the nation. In addition, industries employing a substantial amount of immigrants will
resident of the United States, they must demonstrate to the government that they will not become
a financial liability. Under this change, the government would define the public charge through a
variety of different factors, including “having a medical condition, currently receiving ‘any
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government assistance’...and not currently working or being enrolled in school full time”
(Boteach 5). The scope of the public charge law, as compared with previous versions, has
Figure 1. Comparing Long-Standing Definitions of public charge to the New Proposed Changes
Boteach, Melissa, et al. Trump’s Immigration Plan Imposes Radical New Income and Health Tests. Center for American Progress, 19 July 2018. Center for American Progress,
As seen in the right of Figure 1, many different government assistance programs are
included in the new public charge law, such as Medicaid, Food Stamps (SNAP), and tax credits,
as opposed to “long-standing test” listed on the left. When an immigrant enrolls in any of these
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programs, it will be considered a negative factor that would lead to a determination of a public
charge. If given this distinction, immigrants “may be inadmissible and ineligible for adjustment
of status or admission into the United States” (“Proposed Change to Public Charge Ground”1).
In essence, they may be barred from entering and staying in the U.S, or becoming a permanent
resident. However, The Department of Homeland Security (DHS) and the U.S. Citizenship and
Immigration Services have discretion and must holistically view each applicant’s situation,
including factors such as “age, health, family status..., and educations and skills” (“Proposed
Change to Public Charge Ground” 1), meaning that a public charge determination will not
When examining the public charge law, it is important to first understand the
fundamental rationale for its passage. According to the USCIS, “self-sufficiency has long been a
basic principle of United States immigration law”, and that since the 1800s, “Congress has put
into statute that individuals are inadmissible to the U.S. if they are unable to care for themselves
without becoming a public charge” (“Proposed Change to Public Charge Ground” 1). As such,
immigration policy, in the view of the U.S government, should be designed and structured in
which to limit the amount of potentially dependent immigrants. Preferably, the immigrants that
were allowed into the U.S would “rely on their own capabilities and the resources of their
families, their sponsors, and private organizations” instead of the government (“Inadmissibility
on Public Charge Grounds” 51123). The public charge is emblematic of this attitude, creating a
programs will not automatically disqualify potential immigrants from entering and obtaining
permanent residence, but the mere presence of the law would incite panic and confusion among
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the immigration community. Immigrants would likely be “nervous about applying for benefits,
and some portion will in fact disenroll from benefit programs”, a number of up to 24 million
people in the United States (“Only Wealthy Immigrants” 4). This drop is due to the possible
repercussions of losing their legal immigration status, even if the specific individual would not
be affected by the change. As a result, the reduction in public benefit spending due to a lack of
immigrant enrollment has the potential to initially save a substantial amount of money for the
federal government.
Currently in the U.S, although the immigrant usage rate of public benefits programs
remains relatively low compared to native born Americans, the number still represents a
potentially significant amount of fiscal burden towards the federal government. In 2014, the
working age dependency ratio of immigrants, or the working population dependent on the
government or other forms of support is around 52.8% for immigrants (Boucher 2), meaning that
almost 53 out of 100 immigrant workers are dependent on the government for various forms of
assistance. Even though this number is lower than the dependency ratio for those born and native
to the U.S, the government views this as detrimental to the goal of a self-sufficient society. This
is further supported by immigrant welfare and government benefit usage rates. A 2015 Center for
Immigration Studies report found that “about 51% of immigrant-led households receive at least
one kind of welfare benefit, including Medicaid, food stamps, school lunches and housing
assistance” (Gomez 1). Thus, the federal government, through the public charge law, seeks to
reduce these numbers by denying immigrants that have the potential to enroll in these programs
of their legal status. Considering that “the average per capita costs of government assistance for
an immigrant in the United States averaged around $3,718 dollars” (Nowrasteh 2), the total
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economic burden placed on the government as a result of immigrant welfare use represents a
consideration on policies such as the public charge law that would aim to address the issue of
public dependency.
The chilling effect therefore, in the view of the government, seeks to reduce the usage
rates and thus the overall welfare cost per capita of immigrants, saving a potentially significant
amount of resources in the process. The estimated 10 year savings as result of a reduction in
immigrant use of public benefits, as estimated by the DHS, averages to around 380 million to 1.1
billion dollars (“Inadmissibility on Public Charge Grounds” 51117). The government believes
that these savings could be diverted towards other sectors of the federal budget, such as
education, the military, etc. However, although these savings appear to be relatively high, DHS
does not consider the potential economic repercussions that would result in addition to the
passage of this law, including the loss of income tax revenue and the increase in healthcare costs.
Income tax revenue, specifically from immigrant households, has the potential to be
tremendously affected as a result of the public charge law. The mere pretense of the law seeks to
reduce the amount of legal immigration into the U.S in the form of green cards. However, this
presents multiple negative implications for tax revenue, because a drop in the amount of green
cards issued empirically reduces the amount of employed workers as well. A 2017 Urban
Institute study concluded that decreasing the amount of green cards issued each year could
“reduce the number of employed workers [by] 1.2 percent in 2030, 3.7 percent in 2050, and 5.9
percent in 2070” (Cosic 5), due to skilled workers being denied permanent status and entry into
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the U.S. Although the Cosic study refers to a different piece of legislation designed to limit green
cards, it is not unreasonable to assume a similar outcome for the public charge law.
This reduction in green card workers is problematic because these individuals are
required to pay income taxes to the U.S Government, while non-permanent immigrants, such as
those on visas and with temporary status, can avoid paying income taxes each year if they are
“are present in the United States for less than 183 days during the current year” and have not
applied for a green card (Fishman 5). As a result, those who do not eventually receive a green
card are exempt from income taxes, reducing the amount of tax-eligible workers in the U.S.
Since immigrants provide an estimated $61.1 billion in 2012 to the U.S in terms of tax
contribution (Tuttle 9), they play a key role in funding the government and providing significant
immigrants are more frequently denied green cards because of their supposed “liability” towards
the government. This is extremely problematic because on net, immigrants contribute more
revenue into the government than they consume. A study in Arizona found that the “state’s
immigrants generate $2.4 billion in tax revenue per year, which more than offsets the $1.4 billion
in their use of benefit programs” (“Fact Sheet” 1). On a broader national scale, a 2018 National
Immigration Forum Study found that “although immigrants cost the government on average
around $259,000 in terms of public benefit use, the immigrant over that span has contributed
almost $800,000 back into the government (Kosten 1). The contributions made to the
government by immigrants in the form of tax revenue are significant enough to the point in
which they outweigh the cost of an immigrant’s public benefits use. Although immigrant public
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benefit use does cost the government a substantial amount, restricting legal immigration would
exacerbate the problem, resulting in even less incoming revenue for the government. The
implications of the public charge law do not extend just towards a reduction in tax revenue, but
Many of the programs included in the public charge law provide benefits to immigrants
relating to their health and vitality. Some of these programs include “Medicaid... Medicare Part
D Low Income Subsidy, the Supplemental Nutrition Assistance Program (SNAP, also known as
food stamps), [and] any benefit provided for institutionalization for long-term care at
government expense” (“Proposed Change to Public Charge Ground” 2). Thus, enrollment in any
of these particular programs under the public charge law could jeopardize immigrants on their
pathway towards obtaining legal status. In addition, other potential factors such as “having a
medical condition and being unable to show evidence of unsubsidized health insurance, the
for treatment” (Boteach 7), could negatively influence an immigrant’s chance of obtaining
permanent residence as well. Even if these individuals have not yet enrolled in a government
healthcare program, the government can still potentially find a determination of a public charge
if they believe that the person will most likely enroll in the future. All of these factors contribute
to a potential mass panic among the immigrant population, who become unsure as to whether
their immigration status will be compromised due to enrollment in these programs. As a result,
the proposed rule would ”likely lead to broad fall offs in participation in Medicaid and other
Policies” 6), not just those who would be directly affected by the changes. Even if certain
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immigrant households may not be adversely affected due to the change, the chilling effect
resulting from the passage of the law is likely to frighten these individuals into disenrolling in
these healthcare programs, just to ensure that their immigration status will not be adversely
affected. This mass disenrollment has two potential negative economic effects: reducing revenue
Immigrants without adequate support from the government to deal with health care costs
place a significant financial burden on healthcare providers and hospitals. Because these
immigrants would lack coverage and access to essential assistance programs, health care costs
and other expenses would become much more difficult to overcome. This would initially force
many low-income immigrants to “skip routine primary and preventive care, which in the long
run, could lead to unmanaged conditions and more expensive care” (Orris et al 5). In the process,
health care providers and companies who treat a high number of immigrants would lose
significant amounts of clientele as less immigrants, without aid from the government, seek their
assistance. This loss of healthcare coverage due to the public charge law could result in a
potential loss of “$68 billion Medicaid/CHIP spending” (Orris et al 4), a substantial amount of
revenue for hospitals and health care providers. But these economic determinants are not just
unique to the healthcare industry; the entire national economy will be affected by the potential
When immigrants skip treatment due to affordability, their overall health declines as a
result. In the long run, this lack of care and treatment could result in “increased prevalence of
diseases, increased uncompensated care, [and] increased rates of poverty and housing instability;
(“Proposed Changes to 'Public Charge' Policies” 3), creating a significant barrier for these
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immigrant families. Trapped in the cycle of negative outcomes and unable to overcome the costs
for treatment, these immigrants will not be able to fully contribute towards society and the
economy, because negative health impacts productivity and efficiency of a worker. The lack of a
fully healthy immigrant worker affects the economic growth and government spending in two
ways. First, spending would be reduced in other areas as families struggle to pay food and health
costs. This could lead to a “potential loss of $24.1 billion due to the ripple effects of this lost
spending... (“Only Wealthy Immigrants 6”), due to the downturn in spending and economic
contributions that families make due to the now unaffordable costs of healthcare and spending.
Second, poor health care costs the U.S economy around 576 billion dollars per year (Japsen 1),
as a result of a loss of worker efficiency. Because many of these workers will potentially face
negative health consequences due to a lack of support from the government, the lost productivity
of these workers will cause the companies and industries employing a significant amount of
healthcare and assistance programs does not just adversely affect the health and the well-being of
The impacts of a loss of green-card immigrants due to the effects of the public charge
change extend not just towards government revenue and healthcare spending, but also towards
companies that employ a substantial amount of immigrants as well. Currently in the U.S, there
are 65 occupations in which 25 percent or more of the workers are immigrants (Camarota 1),
including “220,000 workers in the trade, transportation, and utilities industries, almost 150,000
workers in the education and health services industries, and more than 125,000 workers in the
professional and business service industry” (“Economic Impact” 2). Because less immigrants
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would be eligible to stay in the country and obtain permanent residency due to the new
requirements, the number of available employees for a company would shrink, and the abilities
of the remaining would be heavily compromised. In addition, since many immigrants in training
programs “depend on other benefits that would be counted against them -- such as SNAP or
Medicaid, ” many would not be able to “persist and complete their education” (Bergson-Shilcock
8). As a result, immigrant workers, due to the limitations imposed on them by the public charge
law, would find it much more difficult to complete their education and pursue opportunities due
Consequently, this would create an extreme shortage of skilled employees for these
companies, who will have to look for other alternatives for potential labor, eventually seeing
their revenues decrease as a result. A study by the Georgia Budget and Policy Institute found that
if the public charge law was implemented, it would “have a dramatic impact on Georgia’s
economy, creating job losses in the thousands, a dip in economic activity and a reduction in
federal funds flowing to Georgia between $139 million to $323 million” (Owens 1). A report by
UCLA concurs on a larger scale, reporting that in the case of California, “[the state] could lose
up to $1.67 billion in federal benefits” (Scheitler 2018), with thousands of potential lost jobs as
well. This represents just the potential implications on a regional level. However, on a national
scale, the negative detriments would be far greater. The Fiscal Policy Institute again estimates
that “economic ripple effects as a result could range from $14.5 billion to almost $33.8 billion,
while also losing anywhere from 99,000 jobs to almost 230,000 jobs” (“Only Wealthy
Immigrants” 5). The shrink in the eligible workforce results in a high amount of economic
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detriment to the productivity and revenues of companies with high immigration workforce
However, the implications of the public charge law would not just affect the available
employee population, but also immigrant workers who are currently employed in these various
industries. When companies want to temporarily hire immigrant employees from abroad and
obtain them work visas, there will be more expenses and red tape as a result of guaranteeing
compliance with the public charge law. DHS acknowledges this fact in the original background
of the law, noting that “the proposed rule would also impose additional costs for seeking
extension of stay or change of status” (“Inadmissibility on Public Charge Grounds” 11157). This
issue presents itself through multiple forms; for example, a U.S. employer “is going to find it
more difficult and much less predictable to extend the status of a highly skilled worker” (Rand
5), due to the potential disqualification of status and green card eligibility. A company becomes
disincentivized to hire immigrant labor if they are required to go through the process of obtaining
legal status for a potential employee just to conclude that that individual would be ineligible to
stay in the U.S. All of these factors contribute to increased costs and efforts by employers to
ensure prospective immigrant employees will not have a public charge determination placed on
them. All in all, Rand further estimates that “compliance costs could top $1.3 billion over the
next decade” (Rand 5), a number corroborated by DHS estimates. Considering that the estimated
overall income of workers who would be affected by the public charge rule is “more than $96.4
billion” (“Economic Impact” 2), U.S companies and employees stand to lose a significant
amount of revenue and eligible workers if the implications of the public charge law come into
fruition.
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Although the intentions of the public charge law are rooted in a fundamental goal to
reduce dependency, the law itself presents an ineffective method of solving this issue. Even
though there exists initial positive economic benefits stemming from reduced enrollment in
government assistance programs, the drawbacks in the form of reduced tax revenue, increased
healthcare spending, and economic costs for companies far outweigh in magnitude. Essential
programs such as Social Security and food stamps would not be adequately funded due to a
imperative that lawmakers and the Trump administration both holistically understand all of the
unintended effects of the public charge law, and to make changes not only to benefit the millions
of immigrants living in the U.S, but also to avoid potentially serious economic consequences for
the American economy. The next section of the paper will analyze the severity regarding the
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As the public charge law itself is an inadequate method of addressing the problem of
government dependency, it is therefore necessary to examine the severity of the problem itself,
and to determine whether or not the issue of government dependency is worth addressing.
Additionally, a potential solution to the problem should be analyzed for effectiveness in reducing
the severity of government dependence and the financial problems it creates, while analyzing the
Government dependency, even in small amounts, is still rapidly prevalent throughout the
U.S. In 2012, a Wall Street Journal report found that “49% of the population lives in a household
where at least one person gets some type of government benefit” (Spalding 1). In addition,
approximately 50 million in the U.S participated in means-tested programs such as food stamps
and Medicaid per month in 2012 (Mitchell 2). Problematically, because nearly half of all
taxpayers pay no income tax (Fraser 1), the issue of affordability for the government is further
exacerbated as significant parts of the population do not contribute as much back towards the
government in terms of taxes. In conjunction with increasing spending on these programs, this
creates a significant downward spiral that results in the increasing budget deficits and growing
In the 21st century, the U.S has spent much more resources on funding these government
programs as a result of increased use and population growth. From 1964 to 2016, welfare
spending per person increased almost 7 fold, from 364 dollars to over 3500 dollars (Rector 10).
Overall, the government spends almost a trillion dollars a year on welfare programs (Smith 1), a
significant portion of the annual budget. Problematically, this gradual increase in spending is
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unsustainable in the long term, resulting in America becoming “permanently debt-ridden, more
dependent, and less self-governing” (Fraser 3). Instead of utilizing these resources on other parts
of the country, such as infrastructure or education, more and more money is poured into
maintaining these programs. Thus, these factors create the premise for introducing work
Work requirements are nothing new; simply put, they require potential individuals to be
employed before they enroll in a welfare program. The purpose of these additional barriers is to
encourage personal independence and fiscal responsibility; instead of simply aiding these
individuals and “[failing] to address the root of joblessness and dependence on government”
(Clark 2), work requirements serve to provide temporary stability towards an individual so that
they can eventually gain financial autonomy. Considering that “the number of able-bodied adults
dependent on [welfare programs] remains near a record high” as a result of a lack of enforcement
within many of these programs (Rasmussen 2), work requirements would thus emphasize
productivity among its participants, instead of simply promoting idleness. In some programs that
enforce work requirements, participants would have to work “for at least 30 hours per week”
(Smith 2) in order to stay enrolled, a requisite that other welfare programs such as supplemental
income and housing assistance could potentially emulate. Although this requirement initially
appears daunting for many individuals, in the long run the benefits they receive from working
dependency as well as an increased personal responsibility, once an individual has begun to work
and support themselves, it is much less likely that they will rely on assistance from the
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government. The promotion of working thus stimulates an overall increase in employment and
reduction in poverty (Rachidi & Doar 1), as a result in this increase in income. This has been
demonstrated in Kansas, where after the state in 2011 implemented bold welfare reforms that
included work requirements for a wide range of government assistance programs, families that
were previously on welfare programs but began to work “saw their incomes steadily rise, more
than doubling within the first year” (Horton & Ingram 2). Not only that, but many participants
were now contributing more to their local economies and providing more tax revenue for their
effects. Empirically, the Department of Agriculture found that after the various welfare reform
bills in the 1990s that introduced the concepts of work requirements, employment rates
increased, creating a “roaring economy” at that time (Rasmussen 2). However, despite the
significant correlation between the introduction of work requirements and increased economic
viability, questions still remain as to the actual impact of the former on the latter.
this does not necessarily fully lead to more autonomy and financial independence. Research from
the Department of Agriculture found that “adding work requirements to [food stamps] doesn’t
increase levels of employment among recipients” (Weiner 1), instead discouraging enrollment in
the first place. With employment being only “marginally increased” by the introduction of work
requirements (Harris 1), participants will still potentially struggle financially due to the loss of
the welfare assistance. Since these programs are designed to assist needy participants,
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poverty level. As a result, research finds that “mandatory work activities result in ‘no statistically
(Barlow 5). In fact, financial outcomes could even be worse off as a result of the loss of aid. In
the case of the Temporary Assistance for Needy Families program, a short-term monetary
assistance program, the Center for Budget and Policy Priorities found that two million families
have lost their benefits “for failing to meet work requirements” since 1997 (Jones 1),
participants’ livelihood.
welfare programs, overall the financial effect on the participants themselves is controversial.
Thus, in order to maximize the effectiveness of these requirements, they should be utilized with
other means of promoting independence. For example, a successful welfare program should
“boost the education and skills of those subject to work requirements” (Pavetti 1), in conjunction
with work requirements themselves to ensure that an individual will be able to develop the skills
necessary to function autonomously. When combined with these additional forms of assistance,
work requirements have been empirically proven to reduce government dependency, and is thus
a policy the federal government should consider implementing on a large-scale, nationwide level.
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Works Cited for Research Paper
“Only Wealthy Immigrants Need Apply” How a Trump Rule’s Chilling Effect Will Harm the U.S.
10 Oct. 2018. Fiscal Policy Institute,
fiscalpolicy.org/wp-content/uploads/2018/10/US-Impact-of-Public-Charge.pdf. Accessed
4 Nov. 2018.
Bergson-Shilcock, Amanda. "Newly proposed immigration 'public charge' rule would harm
immigrant workers and US businesses." National Skills Coalition, 12 Oct. 2018,
www.nationalskillscoalition.org/news/blog/newly-proposed-immigration-public-charge-r
ule-would-harm-immigrant-workers-and-us-businesses. Accessed 17 Dec. 2018.
Boteach, Melissa, et al. Trump’s Immigration Plan Imposes Radical New Income and Health
Tests. Center for American Progress, 19 July 2018. Center for American Progress,
www.americanprogress.org/issues/poverty/reports/2018/07/19/453174/trumps-immigrati
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Boucher, Jean Leon. Dependents and Dependency Immigrants and the Future of the US
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Cosic, Damir, and Richard W. Johnson. How Might Restricting Immigration Affect Social
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Japsen, Bruce. U.S. Workforce Illness Costs $576B Annually From Sick Days To Workers
Compensation. 12 Sept. 2012. Forbes,
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Kosten, Dan. "Immigrants as Economic Contributors: Immigrant Tax Contributions and
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Nowrasteh, Alex, and Robert Orr. Immigration and the Welfare State: Immigrant and Native Use
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Orris, Allison, et al. "Public Charge Rule Would Have Significant, Negative Impact on
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Owens, Jennifer. "Potential Changes to Public Charge Would Negatively Impact Georgia
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Scheitler, AJ. Proposed changes to immigration rules could cost California jobs, harm public
health. UCLA Fielding School of Health, 3 Dec. 2018. UCLA,
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Works Consulted
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