After the Senate’s immigration reform bill passed, the White House issued a statement discussing how reform will help the Social Security Administration. According to the White House, the commonsense immigration reform will bolster the Social Security program in the long and short run and will ensure Social Security benefits for Americans through 2035. The bill will also reduce Social Security liabilities that are currently unfunded by almost $500 billion through 2087.
The White House also said that immigration reform will be good for the U.S. budget as well as economic growth, in addition to Social Security. The reason Social Security would benefit from immigration reform is when previously undocumented workers gain American citizenship and begin paying into the system through payroll taxes. Currently, the Social Security Administration is facing a 75-year shortfall that would prevent future retirees from being able to withdraw from Social Security. However, immigration reform would reduce that shortfall by about $500,000 billion.
The New York Times reported on how the Social Security Administration would benefit from immigration reform and said $276,000 billion in revenue would be generated over the next 10 years. During that time, Social Security would only cost the United States $33 billion.
Stephen Goss, Chief Actuary of the Social Security Administration, said Social Security would record a net gain from immigrants in 75 years because withdrawals will be balanced out by their children’s contributions. Only about one-third of unauthorized immigrants already in the United States pay into Social Security. The Center for American Progress told The New York Times that 70 percent of those who are not here through a legal channel would contribute $500 billion in 36 years and make up for the baby boomers that put such a strain on the Social Security system.