By Marshall Plane, Ernesto Castañeda
Days after federal corruption charges against him were dropped, Mayor Eric Adams appears poised to open New York City to President Trump’s mass deportation agenda in what Manhattan’s federal attorney described as a “quid pro quo”. Mr. Adams’ posturing has hinted at this for some time: the mayor has framed the recent influx of asylum-seeking migrants as an economic burden that “will destroy New York City.” “The long-term consequences have yet to materialize of what this crisis will do to our cities,” he told Tucker Carlson on January 22nd.
After crunching the numbers, we agree with Mr. Adams: New York City is just beginning to reap the benefits of this influx of hardworking people. We conservatively estimate that, if their earnings and employment rates are similar to the current undocumented population, the 316,000 asylum seekers who have come here since 2022 will contribute $8.62 billion annually to the city’s economy, a figure greater than the GDP of forty countries. Much of this economic activity will flow to public coffers: the asylum seeker population is projected to pay $942 million more in taxes than they receive in benefits each year. If ICE is allowed to wreak havoc on New York City, all these benefits will be lost.
This is not particularly surprising. Previous waves of immigrants have similarly fled desperate situations, arrived with limited resources, faced nativist backlash, and still become vital contributors to the city’s economy and culture. There’s no reason to believe today’s newcomers should be any different. With New York’s US-born population declining and demand for workers growing fastest in the industries most reliant on immigrant labor, they are arriving at an opportune time.
It’s true that New York City has spent substantial amounts on services for asylum seekers: a combined $5.2 billion in fiscal years 2023 and 2024, with another $4.5 billion budgeted for FY2025. These costs doubtless been have been inflated by Adams’ “emergency” decision to suspend background checks and competitive bidding requirements for contractors providing such services. The Comptroller’s investigation found several egregious examples of overpayment. One contractor received $117/hour for security guards and $201/hour for off-site managers. Despite this waste, spending on asylum seekers made up just 4.2% of the FY2025 budget.
Most importantly, these costs are not the product of an “open border.” Immigrants have been coming to New York City via the border for decades. In fact, the city’s undocumented population was 611,000 in 2012 and fell to 412,000 by 2022. Nor is the scale of the current influx unusual in recent times–during the 1990s, the city’s foreign-born population grew at a higher annual rate than it has during the 2020s.
Instead, the recent difficulty housing asylum seekers is a unique case created by a perfect storm of policies: a political stunt that brought people to cities where they lacked connections; an artificial housing shortage; an already-struggling, poorly run shelter system unequipped to house new arrivals; a lack of legal immigration pathways; and outdated laws that prevent asylum seekers from working.
Each wave of immigration to New York City has been beneficial to both the immigrants themselves and their adopted city. The only difference today is that arcane policies have forced both sides to make major upfront investments before they begin to enjoy those mutual benefits.
Before claiming asylum, people must physically come to the US. For nearly all the asylum seekers we spoke with as part of our ongoing study, this involved taking on substantial debt to finance a deadly, months-long overland journey. This debt can be a major obstacle as people try to establish themselves in New York.
In 2023, John borrowed nearly $30,000 to bring his family of five from Ecuador to the US border. A mechanic by trade, he quickly found work repairing e-bikes at a workshop in Queens, earning $1,200 a week. Yet over half of each paycheck goes to repaying his creditors back home (who have threatened to kill his parents should he miss a payment), leaving him unable to afford rent and trapping his family in the shelter system. He says he’ll have paid off enough debt to move to an apartment in New Jersey in three months.
Lacking a sponsor in the US, crossing the border was John’s only way to come here. Leave aside, for a moment, your beliefs about whether doing so was morally correct. The fact is, he’s here and contributing to our economy. Had he been able to come directly from Quito to New York, his spending power would be going to New York businesses instead of human smugglers.
Another problem: after applying for asylum, people must wait 180 days before receiving a work permit. Unless they have connections to support them, this effectively forces people to live off the state for six months. In practice, our conversations have made clear, it’s often much longer. In 2023, New York City began limiting stays in any one shelter to 60 days, forcing people to shuffle between different facilities. Many migrants are not informed that failing to report this change of address to USCIS within 10 days is a misdemeanor and can delay or derail their ability to get documents.
The experience of Carlos, who we spoke to outside a Manhattan shelter, exemplifies the bureaucratic absurdities that hold migrants back. Bused to NYC in late 2023 as part of Operation Lone Star, he immediately applied for asylum, citing political persecution in Venezuela. While waiting for his work permit, he has bounced between different shelters and worked temporary construction and moving gigs. He says his lack of documentation allowed these employers to exploit him, frequently not paying him in full.
Carlos told us a relative in Oklahoma has found him a job in trucking, his original profession. “The moment my papers arrive, I’m going to Oklahoma,” he says. “They’re waiting on me.” He was supposed to get his work permit months ago but had to restart the process when his address changed. He was most recently told his papers should arrive in 90 days.
The absurdity is infuriating. Due to decades-old laws, people itching to work linger in shelters against their wishes and at great financial cost, while crucial jobs across the country remain unfilled. The Independent Budget Office estimates the cost of missed work authorizations for asylum seekers at up to $1 billion in 2024 alone.
Even so, with US-born workers rapidly aging, rising immigration has done much to ease post-pandemic labor shortages, helping reduce inflation while maintaining economic growth. And asylum seekers are quietly integrating into the city’s economy. Of the 225,000 migrants who have passed through the shelter system, over 170,000 (77%) have moved out, and the number remaining in city care continues to dwindle.
Many interviewees, having recently gotten their work permits and found jobs after a long ordeal, expressed excitement to begin living independently and working towards the various dreams that kept them going through sweltering jungles and deserts. As asylum seekers increasingly fill the jobs that keep New York’s service-based economy moving, the investments made by both sides finally appear to be paying off. For deportations to derail asylum seekers’ budding lives as New Yorkers would be a human tragedy and an economic catastrophe
Marshall Plane is a Research Assistant at The Immigration Lab.
Ernesto Castañeda is the Director of the Immigration Lab and the Center for Latin American and Latino Studies and a Professor at American University.
