Recent and proposed immigration policies in the United States are expected to increase the cost of living for American families, potentially adding $2,150 per year to household expenses. Analysts warn that these policies could have wide-ranging effects on essential goods, services, and housing, while also harming mixed-status families across the country.
The Rising Cost of Everyday Goods
American families are already grappling with high prices for essentials like food, housing, and utilities. Policies that revoke work permits, deport immigrants, and reduce legal immigration could remove millions of workers from the U.S. labor force. FWD.us estimates that producer prices for key sectors could spike: food and beverages could rise by 14.5%, construction and housing by 6.1%, and leisure and hospitality by 3.9%.
The average grocery bill for a U.S. household is expected to increase from $165 per week in 2024 to $195 by 2028, while the price of a new home could rise from $420,000 to $468,000. These increases would disproportionately impact working-class families, many of whom are already stretched thin by current inflation.
Impact of Immigration Policies on the U.S. Labor Force
The expiration or revocation of work permits for individuals with temporary protections such as TPS, DACA, and parolees from countries like Afghanistan, Cuba, and Venezuela would remove nearly 3.1 million workers from the labor market. Deporting 1 million immigrants annually and cutting legal immigration by half would further reduce the workforce by 1.7 million.
Industries that rely heavily on immigrant labor, including agriculture, construction, manufacturing, and hospitality, would see the most severe labor shortages. This reduction in workers drives up costs for goods and services across the board, affecting both urban and rural communities.
Families at Risk
Millions of American citizens living with immigrant family members would also face challenges. Parents could lose income from revoked work permits, pushing children and households into poverty. FWD.us estimates that over 1.6 million U.S. citizen adults and 1.5 million children live with immigrants without legal status or with temporary protections. Losing these workers would exacerbate economic hardship and disrupt communities.
Broader Economic Consequences
The policies could also reduce the long-term contributions immigrants make to the U.S. economy, including taxes, consumer spending, and workforce participation. Combined with rising costs for food, housing, and services, these measures could effectively act as a hidden tax on all Americans, limiting disposable income and economic growth.
The removal of immigrant workers, whether through deportation, revocation of work permits, or limits on legal immigration, would directly increase prices for everyday goods and services. Mixed-status families would be particularly vulnerable, facing both financial strain and social disruption. Analysts warn that these policies, while politically motivated, could have unintended consequences that affect millions of Americans for years to come.
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