The immigration crisis may bankrupt cities such as New York, Denver and Chicago as federal funds fall short of needs

The immigration crisis may bankrupt cities such as New York, Denver and Chicago as federal funds fall short of needs, per CNBC.


The recent influx of migrants has placed significant financial strain on major cities across the U.S.

"It's becoming politically unsustainable for the Biden administration to continue allowing this unrestricted flow into cities that essentially operate as welfare networks, such as New York, Denver, and Chicago," said Simon Hankinson, a senior research fellow at The Heritage Foundation, a conservative think tank in Washington, D.C.

Feeling the pressure, cities like Chicago and New York have started imposing restrictions on the transportation of certain migrants from the South. However, experts argue that more federal assistance and funding are needed to help cities cope with the ongoing crisis.

"The current level of federal funding provided to state and local governments is insufficient compared to the need," said Debu Gandhi, senior director of immigration policy at The Center for American Progress, a nonpartisan progressive policy institute. "Congress allocated a mere $800 million for a FEMA program nationwide last fiscal year to aid cities in assisting these newcomers."

Cities, however, argue that this amount falls far short of what is necessary. For example, the $145 million allocated to New York City is less than 10% of what the city spent on migrant services in fiscal 2023, according to the Migration Policy Institute, a nonpartisan think tank.

"This involves a wide range of needs, from housing to services for people who are new to a place, a country, or a city," said Muzaffar Chishti, a senior fellow at the Migration Policy Institute. "These are complex issues to manage, and the city, state, and federal governments, frankly, were not prepared for it."