EPI

The cost of mass deportations in states like Minnesota—and what federal tax dollars could be funding instead

This week, EPI will release a new tool showing the cost of mass deportations to taxpayers in every U.S. city, county, and state. For the first time, the actual economic tradeoffs imposed on all taxpayers will be shown in one place. Below, we preview the data for Minnesota, a prominent target of the Trump administration’s immigration enforcement crackdown earlier this year.

At a time when families across the country are struggling to afford housing, health care, and education, the Trump administration and its allies in Congress have been cutting support for basic needs and diverting huge sums of money to deportations.

In Minnesota, $4.4 billion in federal taxpayer dollars is being spent on detaining immigrants—many of whom are in the country lawfully—and even some U.S. citizens. That means, on average, every household in the state is paying roughly $2,000 to track down, intimidate, detain, or deport people.

If that money were spent instead on programs proven to improve the lives of working families—education, health care, living wages—it could improve Minnesota communities dramatically. Here are a few different ways the money could be spent over the remaining 2.5 years of the Trump administration:

  • Schools across the state are being forced to cut staff and increase class size. With the money being spent on mass deportations, the state could hire 14,000 more full-time school teachers. This would mean, for example:
    • 1,100 more teachers in Minneapolis
    • 340 more teachers in Minnetonka
    • 215 more teachers in Bloomington
    • 140 more teachers in Duluth
  • With the cuts to the Affordable Care Act, over 140,000 people in Minnesota are projected to lose their health insurance. Due to cuts in Medicaid funding, hospitals are at risk of closing down in Austin, Staples, Mahnomen, Baudette, Little Falls, Hibbing, and Minneapolis. With the money being spent on deportations, we could keep 129,000 people on health insurance, which would also help keep hospitals open.
  • Over 400,000 Minnesotans rely on food stamps, primarily working families with children and elderly people on fixed incomes. But because of cuts in the 2025 Republican tax and spending megabill (the OBBBA), 45,000 people across the state are at risk of being cut off. With the money being spent on deportations, Minnesota could protect food stamps for all hungry families in the state.
  • Last year, over 600 Veterans Administration positions were cut in Minnesota. With the funds being diverted to deportations, we could reverse all these cuts and guarantee Minnesota veterans the care they deserve.
  • Or, instead of restoring any of these services, every household in Minnesota could be given a $2,000 tax refund.

EPI and others have documented the economic harms of a draconian immigration policy and enforcement on immigrants and their families, as well as U.S.-born workers and the economy as a whole. Any of the alternatives listed above would be a better use of taxpayer dollars for improving the welfare of everyday Minnesotans. It is critical that we take into account the missed opportunities of funding a mass deportation regime, including the badly needed services being ignored or cut off to keep this policy funded and to keep immigrants living in fear.

Congress has long underfunded worker protection agencies. The Republican budget would deepen the damage.

On June 9, the Republican majority on the U.S. House Appropriations Committee approved a 2027 budget that slashes funding for worker protection agencies.

The bill includes a combined $71.9 million cut for the Department of Labor’s Wage and Hour Division (WHD) and the Occupational Safety and Health Administration (OSHA). Further, the measure implements a 3% cut to the National Labor Relations Board (NLRB). While the legislation slightly increases funding for the Equal Employment Opportunity Commission (EEOC) that the Trump administration has weaponized for political reasons, the amount overall remains insufficient. The appropriations measure now moves to the Senate, where the budget cuts face an uncertain future.

If enacted, these reductions would further strain these agencies that have faced over a decade of flat funding that hasn’t accounted for inflation or rising labor force participation (see Figure A). This chronic underfunding has severely impacted their ability to enforce worker protection laws.

Figure AFigure A The consequences of underfunding worker protection agencies

The Department of Labor serves the nation’s workers by administering and enforcing most federal worker protection laws, such as the Fair Labor Standards Act, the Occupational Safety and Health Act, and the Family and Medical Leave Act. Within this framework, the WHD ensures that workers receive wages earned while OHSA evaluates safe workplace conditions and standards. Moreover, independent agencies such as the EEOC enforce a range of anti-discrimination laws while the NLRB enforces private-sector labor law, including workers’ rights to a union and collective bargaining. Together, these government agencies are designed to equip workers with the tools to combat workplace abuses and rectify unequal bargaining power. However, enforcement agencies are unable to fulfill their mandates with reduced staffing and resources.

Since 1992, OSHA has experienced a 16.0% decrease in inspectors. OSHA has been left with so few resources that it would take 191 years for its inspectors to visit every workplace under its coverage just once. Furthermore, a recent Government Accountability Office report flagged critical agency shortcomings, noting OSHA’s weak efforts to address the rising tide of workplace violence against health care and social service workers.

WHD has faced similar staffing challenges. The number of WHD investigators is at its lowest point since at least 1973, despite being tasked with protecting many more workers. As a result, the total number of resolved WHD investigations has dropped significantly over the past few years (see Figure B).

Figure BFigure B

Meanwhile, the EEOC has experienced an uptick in discrimination claims over the decades alongside rising labor force participation, yet its resources have not matched the pace of these shifts. For the NLRB, funding for the agency has remained flat except for a recent $6 million reduction in case-handling. The lack of funding has severely impacted field offices—the primary point of contact for union elections—with six closing between 2014 to 2025. In 2024, the NLRB released a statement describing their struggle to meet responsibilities such as conducting hearings and elections amid funding and staffing shortages. The consequence of these challenges is evident. Although favorability for unions nears a record high, major efforts to undermine worker organizing persist.

House budget cuts would leave workers more vulnerable to exploitation

If enacted, the House’s budget cuts would exacerbate an already precarious workplace reality. There were 5,070 fatal work injuries in 2024, according to the Bureau of Labor Statistics (see Figure C). Put another way, a worker died every 104 minutes from a work-related injury. Foreign-born Latinx workers were disproportionately impacted. Reducing OSHA funding and staffing will make it even harder to ensure preventable deaths do not occur.

Figure CFigure C

Additionally, amid eroding worker protections, workers have had billions of dollars of wages stolen each year. Undocumented workers are especially impacted, with many fearing to report violations especially amid the Trump administration’s anti-immigrant policies.

Furthermore, workers continue to face discrimination, filing an average of 83,000 charges per year since 1997. Political attacks on diversity, equity, and inclusion have only eroded the mechanisms designed to address these injustices.

The House budget proposal claims to champion efficiency, but true efficiency cannot be achieved by dismantling an already vulnerable labor protection ecosystem or by slashing public-sector resources. The chronic underfunding of worker protection agencies turns legally guaranteed protections into hollow promises and leaves workers exposed to unchecked exploitation and vulnerability. A budget that truly supports U.S. workers would pass robust funding for staffing, investigators, and programs that guarantee safety, fairness, and justice across every workplace.