CBPP Report: New Jersey Can Strengthen Its Economy and Communities with Two Inclusive Policies for Immigrants

TRENTON, NJ (August 21, 2019) – State and local policymakers can take two key steps to better integrate immigrants, including immigrants who are undocumented, into the mainstream economy and foster community well-being, according to a new report from the Center on Budget and Policy Priorities.

Giving all residents access to economic opportunity would enable them to earn higher wages, spend more at businesses, and contribute more in taxes that are used to fund schools and other investments that are critical to a strong economy, the report finds. Harsh anti-immigrant policies, in contrast, harm workers and their children and likely weaken the economy.

“At a time when federal immigration policies are causing widespread harm, it is both sound policy and beneficial to states to pursue supportive policies that assuage fears and provide opportunity for all of their residents — regardless of their national origin, their religion, the color of their skin, or the language they speak,” Senior Policy Analyst Eric Figueroa of the Center on Budget and Policy Priorities explained.

The report highlights two important ways New Jersey can connect people who are undocumented to opportunity:

1. Driver’s licenses for immigrants who are undocumented can help immigrants who are undocumented get better jobs, make roads safer, and modestly reduce insurance premiums. Fourteen states and D.C. allow immigrants to get driver’s licenses regardless of their status.
2. Expanding health coverage to all children, regardless of immigration status, can improve long-term health outcomes, high school and college completion, and long-term economic benefits for the child and for states and local communities. Six states and D.C. offer health care coverage to all children.

“People who are undocumented already make significant contributions to our local communities and the broader economy, but more can be done to ensure equal access to economic opportunity,” said Erika Nava, Policy Analyst at New Jersey Policy Perspective (NJPP). “Adopting proactive policies like driver’s license expansion and health coverage for all kids would only strengthen New Jersey’s economy by giving all residents, regardless of their immigration status, the opportunity to thrive.”

According to the Center on Budget and Policy Priorities, the nation’s estimated 11 million immigrants who are undocumented pay nearly $12 billion annually in state and local taxes. Further, households headed by a person who is undocumented pay a larger share of their income in state and local taxes than the top one percent of U.S. households.

“Access to a driver’s license is essential to mobility and keeping families together,” said Johanna Calle, director of New Jersey Alliance for Immigrant Justice. “In New Jersey, where driving is a necessity, driving without a license puts undocumented residents at a significant risk of being detained and deported by ICE. Further, the latest public charge rule change has immigrant families fearful of enrolling in health and nutrition programs they need. New Jersey must ensure all families have access to the fundamental right to quality healthcare.”

The report also recommends two policies which New Jersey has already implemented: in-state tuition and state financial aid for college students who are undocumented and stronger labor law and wage theft enforcement.

“The United States is a nation of immigrants and our public policy should reflect that reality,” said Assemblyman Gary Schaer (D-Passaic).” States like New Jersey must take proactive steps to treat all people fairly and give immigrants opportunities to thrive. When immigrants are integrated, their local communities and the broader economy prospers. For this reason, I sponsored legislation to give DREAMers equal access to state financial aid for higher education. This investment will boost the skills and wages of all of New Jersey’s workforce.

“Education is one of the greatest equalizers and most powerful economic engines in our society,” Assemblyman Schaer added. “It will open the doors of success to hundreds of immigrant families who together make our state more competitive and economically viable. Imagine a world where Albert Einstein and Steve Jobs were not granted the opportunities to achieve the American Dream.”

Twenty-one states and D.C. have adopted “tuition equity” laws and 12 of these states plus DC offer state financial aid to students who are undocumented. Last school year, 749 DREAMers received financial aid to attend New Jersey colleges.

Earlier this summer, Lieutenant Governor Sheila Oliver signed legislation to make New Jersey’s wage theft enforcement among the strongest in the nation.

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