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Scrapping DACA Could Cost The Economy As Much As $215 Billion

That's a conservative estimate, according to the Cato Institute.

Posted on September 5, 2017, at 2:58 p.m. ET

Afp Contributor / AFP / Getty Images

Reversing the Deferred Action for Childhood Arrivals program could cost the economy $215 billion in lost GDP and cost the federal government $60 billion in lost revenue over 10 years, according to the libertarian think tank the Cato Institute.

Ike Brannon, a visiting fellow at Cato, wrote in a recent blog post: "It is important to note that these estimates are conservative, as DACA recipients will likely end up being more productive than their current salaries indicate, as they complete their degrees and gain experience in the workplace. Nor does this analysis factor in the enforcement cost of physically deporting recipients should the program be eliminated, which we believe would be significant."

California, New York, and Florida would bear the greatest costs, according to the Cato Institute's analysis.

The New American Economy — a coalition of business leaders and mayors "who support immigration reforms that will help create jobs for Americans today" — estimated that the DACA-eligible population earns almost $19.9 billion in total income annually, contributes more than $1.4 billion to federal taxes and more than $1.6 billion to state and local taxes, and represents almost $16.8 billion in spending power.

"Despite the rhetoric claiming undocumented youths are a drain on the U.S. economy, 90% of the DACA-eligible population who are at least 16 years old are employed" and contribute meaningfully to the economy, the coalition wrote in a brief.

“Ending DACA will disrupt hundreds of thousands of promising careers and cost the US economy dearly,” said John Feinblatt, president of New American Economy, in a statement on Tuesday.

On Tuesday, the Department of Homeland Security said it would shut down DACA in six months, potentially giving Congress some time for a legislative solution. House Speaker Paul Ryan has said there are DREAMers "who know no other country, who were brought here by their parents and don't know another home. And so I really do believe there that there needs to be a legislative solution."

“Now it’s imperative for Congress to do what’s right and economically smart – protect the young achievers who know no home but America,” said Feinblatt.

The Trump Administration Is "Rescinding" DACA

Paul Ryan Says He Wants To Protect DREAMers. But He May Not Be Able To.

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