The City of Los Angeles has declared itself a sanctuary city in anticipation of a potential second term for President Trump. This designation means that the city will refuse to cooperate with immigration enforcement and will not provide immigrant data to the federal government.
If President Trump decides to withhold federal funding in order to force compliance with deportation, it could put the city in a difficult financial situation.
This is because the city is already facing fiscal challenges and heavily relies on federal funding for migrant services. The potential loss of these funds could leave the city with a shortage of funds to adequately provide for the needs of migrants.
The city council has unanimously passed a new ordinance that puts a stop to the use of city resources for immigration enforcement and cooperation with federal authorities involved in immigration enforcement. Under this ordinance, sharing of data, both directly and indirectly, with federal immigration authorities is also prohibited.
According to Councilmember Hugo Soto-Martinez, over one-third of Los Angeles residents, including his own parents, are immigrants. Additionally, he stated that one in ten residents in LA are undocumented.
Soto-Martinez emphasized the importance of taking action to prevent the deportation of their neighbors, family, friends, and coworkers, in response to Donald Trump’s policies.
Los Angeles is home to a significant number of residents, with 3.8 million people living in the city. According to estimates by USC, there are over 800,000 undocumented immigrants in Los Angeles County, with a higher concentration in the City of Los Angeles. As a result, it is reasonable to assume that there are at least 380,000 undocumented immigrants in Los Angeles.
The City of Los Angeles was granted $22 million earlier this year by FEMA to support migrant services. This funding, although significant, is just one of the many sources available. It should be noted that there are also additional federal grants provided to non-government organizations and other groups that offer benefits to migrants.
The city controller has described the city as “broke” and is now in the position of having to borrow $80 million to fulfill court-ordered lawsuit payments.
Given this financial situation, it remains uncertain how the city will be able to afford migrant services independently if the federal funding for such services is discontinued by the Trump administration.
If the Trump administration were to halt all federal funding to Los Angeles due to its refusal to cooperate with federal immigration officials, the city would face significant financial challenges. Nevertheless, certain fiscal analyses propose that the city’s budget could be enhanced by collaborating with immigration authorities.
California is projected to allocate around $15 billion from state tax revenue for healthcare coverage for its 2.7 million undocumented immigrants in the current year. This amounts to approximately $6,000 per individual.
According to the average wage of $13 per hour for undocumented workers in California, an undocumented immigrant earns $27,040 annually and pays $464 in state income taxes.
If we assume that 30% of their income goes towards rent and the remaining amount is spent on sales-tax qualified items, they would also pay an additional $1,372 in state sales taxes and $426 in City of Los Angeles sales taxes.
The amount falls far below the state MediCal expenditure per undocumented individual and is only a fraction of the $3,076 spent by the City of Los Angeles per resident.
According to an economic analysis presented as Congressional testimony earlier this year, illegal immigration poses a significant financial burden, despite the fact that illegal immigrants have high employment rates.
This burden arises from the low taxes paid on their relatively low average earnings. Consequently, households led by undocumented immigrants qualify for welfare transfers on behalf of their American-born children.
According to a recent analysis conducted by the center-right Manhattan Institute, it has been estimated that the average native-born American ends up being a net drain of $256,000 on federal finances.
In contrast, the typical illegal immigrant, as mentioned by the Hastings Center, who arrives between the ages of 25 and 34 with less than a high school education, is a net fiscal drain of $320,000.
According to a report by Daniel Di Martino, an economics researcher and graduate fellow at the Manhattan Institute, immigrants who never obtain a high school diploma are a financial burden to the federal government. They end up costing the government between $40,000 and $150,000 over their lifetime, compared to native-born individuals.
