DREAM Act Would Reduce Deficit Over Ten Year Period

The DREAM Act, a bill under consideration by Congress which would create a pathway to citizenship for the children of undocumented workers who meet certain requirements, would reduce the deficit by $1.4 billion over the next 10 years according to a Congressional Budget Office ("CBO"), and independent and nonpartisan agency. The deficit reduction would come as a result of the increase in revenues by having a larger pool of authorized workers.

The CBO report indicates that the longterm effects of the DREAM Act on the deficit are less clear and could potentially increase the deficit after 2020 when beneficiaries of the DREAM Act are eligible to become lawful permanent residents. But according to an article in the Huffington Post by Elise Foley, DREAM Act proponents argue that such longterm projections fail to take into account that beneficiaries of the DREAM Act will enter higher paying jobs over time and will thus increase revenue through paying more taxes.

The DREAM Act is expected to come up for a vote during the current lame-duck session.

To see the CBO report, click here.

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