How Immigration Policies Impact Social Security Benefits
A recent report commissioned by America’s Voice and conducted by Economic Insights and Research Consulting highlights potential financial challenges ahead for the Social Security system. According to the findings, elderly Americans could face an average reduction of $2,152 in annual retirement payments by 2034 and every year thereafter.
This projected 8.6% drop in benefits is tied directly to the broader economic fallout and lower net immigration resulting from the Trump administration’s anti-immigration campaign. Unauthorized immigrants contribute billions in payroll taxes that help support the Social Security fund, while remaining ineligible to access those benefits themselves.
Broader Economic Impacts on Affordability and Jobs
The report also details how the sudden exodus of 1.2 million foreign-born workers has triggered widespread economic shifts across key industries:
- Food Prices: Agricultural sectors heavily reliant on immigrant labor, such as fresh whole milk, canned vegetables, and apples, have experienced sharper price increases compared to overall grocery inflation.
- Housing Market: The construction industry, where foreign-born workers fill nearly a third of occupations, has seen single-family home building permit issuances drop 10.6% nationwide since January 2025.
- Native-Born Employment: Hard-hit states like California, Nevada, New Jersey, Florida, and New York have seen construction employment decline, impacting native-born workers such as electricians and plumbers who rely on those larger projects.
What Trustees and Officials Are Warning
Social Security trustees—including Treasury Secretary Scott Bessent, Health and Human Services Secretary Robert F Kennedy Jr, Labor Secretary Keith Sonderling, and Social Security Commissioner Frank Bisignano—have warned that lower net immigration threatens worse finances for the retirement benefits system.
If the administration’s immigration agenda continues as expected, the report warns of compounding pressures on the U.S. economy, including higher prices, slower economic growth, and an intensifying affordability crisis.
