The Congressional Budget Office has determined that the Gang of 8 immigration bill would reduce the deficit by nearly $200 billion over the next decade, with an additional deficit reduction of $700 billion from 2024 to 2033.
“Taking into account a limited set of economic effects, the cost estimate shows that changes in direct spending and revenues under the legislation would decrease federal budget deficits by $197 billion over the 2014–2023 period and by roughly $700 billion over the 2024–2033 period,” CBO found .
CBO determined that the deficit reduction would occur because of the economic growth new workers and consumers would add to the economy. It determined that the bill would allow 10.4 million people to live in the United States by 2023 that would live here under current law. The number of temporary workers would increase by 1.6 million, with the population of the unauthorized worker going down the same corresponding amount.
“The increase in the number of legal residents stemming from the bill would boost direct spending for federal benefit programs; direct spending for enforcement and other purposes also would rise,” CBO determined. “Under the bill, federal revenues would be higher as well, mostly because of the larger size of the labor force. Finally, implementing the bill would require an increase in discretionary funding (that is, funding subject to annual appropriation actions) for immigration-related activities.”
The report is ammunition for the bipartisan Gang of 8 senators who have attempted to sell the bill on economic merits. House Republican leader John Boehner (R-OH) has said the House would not vote on the deal without support from the majority of the House caucus.