Walz’s DREAM Act Proposal: Impact on Social Programs & Deficits

In Congress, former Minnesota Governor Tim Walz (D) co-sponsored an amendment to the “DREAM Act,” which aimed to allow millions of unauthorized immigrants to become naturalized American citizens. This legislation would have increased spending on programs like Social Security and Medicare, according to federal analysis.

While still a member of Congress in 2017, Walz joined hundreds of House Democrats along with a few House Republicans as co-sponsors of the DREAM Act of 2017. This bill aimed to ensure that over three million undocumented immigrants could secure green cards and eventually obtain citizenship. Following the introduction of this bill, the Congressional Budget Office (CBO) issued a report revealing that the amendment Walz co-sponsored would have cost American taxpayers tens of billions of dollars.

The CBO report found: “CBO and the staff of the Joint Committee on Taxation estimate that enacting S. 1615 would increase direct spending by $26.8 billion over the 2018-2027 period.” Furthermore, it determined that the amendment would have increased revenues on net by only $0.9 billion—a decline in on-budget revenues of $4.3 billion and an increase in off-budget revenues (Social Security taxes) of $5.3 billion.

In total, CBO and JCT estimated that changes in direct spending and revenues from enacting S. 1615 would increase budget deficits by $25.9 billion over the 2018-2027 period. This would boost on-budget deficits by $30.6 billion and decrease off-budget deficits by $4.7 billion during that same period.

The amnesty proposed by Walz would have significantly increased taxpayer-funded higher education costs by $1 billion, earned income and child tax credits by $5.5 billion, Medicaid spending by $5 billion, food stamp spending by $2.3 billion, Supplemental Security Income (SSI) benefits by $900 million, Social Security spending by $600 million, and Medicare spending by $300 million.

The amnesty’s authorization for newly legalized undocumented immigrants to sponsor their foreign relatives for green cards through the process known as “chain migration” would have had a considerable impact on social safety net programs intended for American citizens.

The direct beneficiaries of S. 1615 would continue to naturalize, making them eligible to sponsor immediate relatives for [lawful permanent resident] status without an annual limit,” the CBO report stated. The later recipients of conditional [lawful permanent resident] status and all family-sponsored legal permanent residents would exceed five years in [lawful permanent resident] status, conferring eligibility for full Medicaid benefits and SNAP.

Both the direct beneficiaries of S. 1615 and their family members who later receive [lawful permanent resident] status would pay enough years of payroll taxes to become eligible for Social Security and Medicare,” the report added.

During his time in Congress, Walz also backed other amnesties. These included one that would have granted green cards to migrants already in the United States on Temporary Protected Status (TPS), and another amnesty that would have incentivized undocumented immigrants to join the U.S. Armed Forces in exchange for a green card.

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