Economic Impact of Mass Deportation in New Jersey

475,000 Undocumented Immigrants in New Jersey

$133 Million in Lost Tax Revenue

Legalization Would Boost Fiscal Contributions

New Jersey is home to approximately 475,000 undocumented immigrants who contribute significantly to the state’s economy through taxes.

A recent report has revealed the potential negative consequences of President Donald Trump’s aggressive immigration policy, which calls for the mass deportation of undocumented individuals.

The study, titled The Economic and Fiscal Impacts of Mass Deportation: What’s at Risk in New Jersey?, highlights that the state is home to 2.3 million immigrants.

Nearly 1 million of whom are non-citizens, including the 475,000 undocumented residents.

Undocumented Immigrants and Their Fiscal Contributions

Mass deportation in New Jersey (USA) would be «devastating» for the state’s economy
https://t.co/FgTcV3KsZB
— Roger Swidorowicz (@rogerswidorowic) May 20, 2025

In 2022 alone, these immigrants contributed around $1.3 billion in local and state taxes.

According to EFE, deporting this population would pose enormous logistical challenges and significant economic consequences.

The report notes that deporting or detaining just one out of every ten undocumented residents would cost the state $133 million annually in lost tax revenue.

That amount is enough to fund 295,000 free school meals in New Jersey’s public schools.

Challenges of Mass Deportation in New Jersey

Economic Impact of Mass Deportation in New Jersey – PHOTO: Shutterstock

The study also warns that immigration policies under the Trump administration could lead to social instability.

Rescinding temporary statuses and altering asylum policies, the report suggests, would destabilize communities, reduce the labor force, and weaken key sectors of New Jersey’s economy.

One of the most affected industries would be the restaurant sector.

In New Jersey, 48% of cooks are immigrants, and the construction industry employs around 112,000 undocumented workers—making up 36% of that sector’s workforce.

Impact on Workers?

In agriculture, more than half of all workers are undocumented or hold temporary visas.

A reduction in this workforce could result in food shortages, price increases, and unsustainable labor costs for farmers.

The report concludes that legalizing the status of undocumented immigrants could boost the state’s tax revenues by $332.5 million.

It also recommends expanding and improving worker visa programs to protect vulnerable laborers from exploitation and prevent negative ripple effects in other sectors.

This study highlights the need for comprehensive immigration reform—one that considers both the social and economic value undocumented immigrants bring to New Jersey.

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