The immigration crisis could lead to financial problems for cities such as New York, Denver, and Chicago as federal funds are insufficient to meet the needs, CNBC reported.
Political and financial concerns loom as U.S. cities struggle with immigration crisis
The recent influx of migrants is causing major financial strain on cities across the U.S.
“I think it’s at this point, politically unsustainable for the Biden administration to maintain this unlimited flow into what’s essentially a welfare state network of cities like New York, Denver and Chicago,” said Simon Hankinson, a senior research fellow at The Heritage Foundation, a conservative think tank based in Washington, D.C.
As the pressure persists, cities like Chicago and New York are implementing restrictions on the transportation of certain migrants from the South. However, experts emphasize the necessity of additional federal assistance and funding to ensure that cities can endure the ongoing crisis.
In August 2023, Mayor Adams stated that the influx of migrants would result in New York City incurring expenses totaling $12 billion, NY Times reported. With hundreds of newcomers arriving each week, the city revised its estimate for the costs associated with accommodating them and delivering essential services.
Officials said they increased the estimate as more migrants kept arriving in the city. The mayor mentioned that by 2025, New York City might have over 100,000 migrants in homeless shelters, which is about twice the current number. This includes people who arrived since the spring of 2022.
Insufficient federal funding leaves cities struggling to support influx of migrants, experts warn
“The current level of federal funding provided to state and local government is a drop in the bucket compared to the need,” according to Debu Gandhi, senior director of immigration policy at The Center for American Progress, a nonpartisan and progressive policy institute. “Congress has provided a very small amount of money of $800 million for a FEMA program for the entire country the last fiscal year to assist cities in aiding these newcomers.”
However, cities argue that the allocated amount is significantly inadequate. For example, the $145 million earmarked for New York City represents less than 10% of the city’s expenditure on migrant services during fiscal 2023, as reported by the Migration Policy Institute, a nonpartisan think tank.
“This is a whole spectrum of housing, of services needed for people who are new to a place, new to a country, new to a city,” said Muzaffar Chishti, a senior fellow at the Migration Policy Institute. “These are complicated issues to manage, so the city, the state and the federal government, frankly, were not prepared for it.”
