Former acting ICE Director Jonathan Fahey criticized President Joe Biden's border policies, arguing that the surge in illegal immigration has imposed economic burdens on Americans, particularly through rising rents and lower wages [1]. Fahey stated, "The American people overall are the losers on illegal migration," and suggested that while certain industries benefit, the overall effect is negative for American workers [1]. He contrasted Biden's approach with that of former President Trump, asserting that Trump's policies were more effective in protecting American workers and supporting wage growth [1].
Fahey referenced a Federal Reserve Bank of Dallas working paper, which analyzed the impact of the record surge in illegal immigration between 2021 and 2024 on local labor and housing markets [1]. The preliminary findings indicated that a 1% increase in unauthorized workers relative to the local labor force was associated with a 1% increase in overall employment, with no evidence that the immigration surge reduced average wages [1]. However, the same population increase was linked to a 2.2% rise in home prices and a 1.4% increase in rents, highlighting additional demand in an already strained housing market [1].
Fahey argued that the influx of over 10 million people, who did not bring additional housing supply, naturally led to higher prices [1]. He also claimed that wages declined during the Biden administration due to increased competition, and that healthcare costs rose because the population increase was not matched by a proportional rise in healthcare providers [1]. However, the Federal Reserve paper's preliminary findings did not support the claim of wage declines, instead noting little measurable effect on wages but a significant increase in housing demand [1].
The Federal Reserve Bank of Dallas authors cautioned that their study is a preliminary draft circulated for professional comment and does not necessarily reflect the views of the Federal Reserve Bank of Dallas or the Federal Reserve System [1].
CONCLUSION
The surge in illegal immigration during the Biden administration has been linked to higher home prices and rents, according to a preliminary Federal Reserve study, though evidence of wage declines is not supported by the data. While former ICE Director Fahey argues that Americans are economically disadvantaged by these policies, the market impact appears concentrated in the housing sector, with employment effects less clear.