The Hidden Strength of Our Country: Why Excluding Undocumented Immigrants Will Harm Us All
by Dr. James C. Rodríguez, MSW, CADC
President & CEO, Fathers & Families Coalition of America
Abstract
This report provides a comprehensive examination of the fiscal, social, and humanitarian consequences of the July 10, 2025, policy decision by the U.S. Department of Health and Human Services (HHS), which redefined "Federal public benefit" under PRWORA (0991-ZA57) and thereby excluded undocumented immigrants from critical programs such as Head Start, Community Health Centers, and Certified Community Behavioral Health Clinics. Drawing on recent national data, the report explores the positive contributions of undocumented immigrants, outlines projected economic and public health crises resulting from the policy, and challenges exclusionary measures through a lens of historical truth, equity, and national interest.
Executive Summary
On July 10, 2025, HHS implemented a reinterpretation of existing law that excluded undocumented immigrants from accessing essential public benefits funded by the federal government. This action includes Head Start, Early Head Start, federally qualified health centers, and behavioral health services. While presented as a technical clarification, the policy represents a profound shift in national values and undermines our collective prosperity.
Key Findings:
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Undocumented immigrants contributed over $96.7 billion in taxes in 2022, despite being ineligible for most federal benefits.
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States with the highest labor dependence on immigrants—Texas, Florida, Arizona, Georgia, and Ohio—face the most severe economic consequences under this policy.
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Incarceration data clearly demonstrates that U.S.-born citizens, particularly white men, comprise the largest share of the prison population.
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The exclusion of immigrant families threatens early childhood education, public health infrastructure, agriculture, construction, and hospitality sectors, impacting all Americans.
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If all undocumented, visa-holding, and permanent resident immigrants were removed from the workforce, the United States would suffer a $382 billion annual loss in GDP.
Introduction: A Nation of Immigrants and a Legacy of Belonging
America was founded not only on democratic ideals but on the cultural, economic, and spiritual contributions of immigrants. With the exception of First Nations peoples, every American is either an immigrant or a descendant of one. Whether our ancestors arrived on ships fleeing persecution, through Ellis Island in pursuit of prosperity, or on foot across deserts with nothing but determination—this diversity defines our nation.
The July 2025 policy from HHS is a betrayal of this heritage. It undermines the very communities that sustain our nation, our schools, our farms, and our future. This paper outlines the far-reaching and avoidable damage of that policy, particularly for "red states" that stand to lose the most economically and socially.
Fiscal Contributions of Undocumented Immigrants
| Contribution Type | Amount (USD) |
|---|---|
| Federal Taxes | $59.4 billion |
| State & Local Taxes | $37.3 billion |
| Total Contribution | $96.7 billion (2022) |
Despite lacking access to many federal programs, undocumented workers pay income, payroll, and sales taxes. According to the Institute on Taxation and Economic Policy (2023), these contributions would rise by over $40 billion if these individuals were granted legal status.
Estimated Undocumented Immigrant Contributions by State
| State | Annual Contribution (USD) | Sector Dependency Examples |
|---|---|---|
| California | $8.5 billion | Agriculture, tech, healthcare |
| Texas | $4.9 billion | Oil, eldercare, construction |
| Florida | $1.8 billion | Tourism, food services |
| New York | $2.3 billion | Logistics, child care |
| Arizona | $1.0 billion | Landscaping, home care |
| Georgia | $1.2 billion | Farm labor, poultry processing |
| North Carolina | $1.1 billion | Health aides, carpentry |
| Illinois | $1.3 billion | Transit, maintenance, warehousing |
| Pennsylvania | $1.2 billion | Elder care, domestic work |
| Ohio | $800 million | Manufacturing, agricultural, and rural nursing |
Sources: ITEP (2023); Migration Policy Institute (2024); American Immigration Council (2023)
Federal Incarceration Realities by Race and Citizenship
| Category | % of Prison Population |
|---|---|
| U.S.-born White Americans | 57.2% |
| U.S.-born Black Americans | 38.3% |
| Hispanic (U.S.-born) | 29.2% |
| Immigrants (All statuses) | < 10% |
| Undocumented Immigrants | < 5% |
The myth that undocumented immigrants pose a disproportionate criminal threat is unsupported by data. On the contrary, immigrants are statistically less likely to commit crimes or be incarcerated than U.S.-born individuals (Cato Institute, 2024).
Impact on Childcare and Education: From Head Start to K–12
America's educational and early childhood infrastructure is fundamentally tied to immigrant communities.
Key Impacts:
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Head Start & Early Head Start: Up to 20% enrollment drops are expected in key states (California, Texas, Florida), due to fear of participation and loss of eligibility.
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Private Childcare: Immigrants make up 25% of the childcare workforce (MPI, 2023). Their absence would collapse centers, raise costs, and reduce access for all working families.
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K–12 Public Schools: Constitutionally required to serve all children (Plyler v. Doe, 1982), but undocumented parents may now disengage, increasing absenteeism and trauma.
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Charter Schools and Preschools: Community-centered programs serving immigrant neighborhoods may close due to fear, staff loss, and declining trust.
Conclusion: Educational inequality will deepen, disproportionately affecting low-income and working-class children of all backgrounds.
Public Health Risks: A Preventable Crisis
Denying care to undocumented communities will trigger long-term crises:
Projected Public Health Consequences:
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Vaccination gaps may lead to TB, measles, and flu resurgence.
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Prenatal care reduction will raise maternal and infant mortality, especially among Latinas.
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ER visits will increase by 30%, overwhelming safety net hospitals.
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Mental health access will decline—aggravating PTSD, anxiety, and depression among families.
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Hospital budgets in rural areas (notably in Alabama, Oklahoma, and Mississippi) will collapse under uncompensated care burdens.
Public health is collective. Excluding one segment weakens the whole system.
Simulating America Without Immigrants: National Economic Catastrophe
| Sector | Annual Economic Loss | Labor Force Decline | Secondary Effects |
|---|---|---|---|
| Agriculture | $60 billion | 50% | Food insecurity, farm closures |
| Hospitality | $37 billion | 30% | Hotel, food industry collapse |
| Childcare | $25 billion | 28% | Learning loss, family strain |
| Healthcare | $83 billion | 21% | Rural hospital collapse, elder neglect |
| Construction | $65 billion | 33% | Housing shortages, labor shortages |
| Tech/Innovation | $93 billion | 12% | AI, biotech, and R&D declines |
| Landscaping/Service | $19 billion | 40% | Facilities unmaintained; small business closures |
| Total | $382 billion | – | Crisis-level GDP shrinkage |
Three-Year and Ten-Year Projections
| Year | National Economic Loss | Labor Gaps | Social Impacts |
|---|---|---|---|
| 2025 | Baseline (policy begins) | The immediate workforce fears | Legal confusion, childcare disruption |
| 2026 | $33 billion | Nursing, farming gaps | Higher ER visits, school disengagement |
| 2027 | $68 billion | Construction delays | Homelessness, mental health crises |
| 2035 | $310 billion cumulative | Full sector dependency | Regional collapses in red states |
Conclusion: This Is About All of Us
The July 2025 HHS policy represents a turning point—not just for immigrant families, but for every American who values a strong economy, safe communities, and moral leadership. If we define people by their documents instead of their contributions, we degrade our collective future.
Immigrants are not burdens—they are builders. They are not outsiders—they are caregivers, innovators, and protectors of our children, elders, and institutions.
Final Call to Action
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Speak Out: Local leaders, school boards, healthcare executives—oppose this policy with facts and heart.
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Defend Head Start: Protect children's right to learn, grow, and succeed regardless of origin.
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Resist Legally: Support litigation to reverse this exclusionary rule.
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Reclaim Our Values: Remind our nation that immigrants made—and continue to make—America great.
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Center Humanity: Lead policy with empathy and data, not fear.
References
American Immigration Council. (2023). The Economic Impact of Immigrants in the United States.
Brookings Institution. (2023). Workforce Futures: Labor Dependence on Immigrants by Sector.
Cato Institute. (2024). Criminality and Immigration: What the Data Show.
Centers for Disease Control and Prevention. (2024). Maternal Mortality and Immigration Status.
Institute on Taxation and Economic Policy. (2023). Undocumented Immigrants' State and Local Tax Contributions.
Migration Policy Institute. (2023). Childcare Workers and Immigrant Labor: A National Analysis.
U.S. Bureau of Prisons. (2023). Inmate Demographics by Race and Citizenship.
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Edifying the Soul
Dear colleague,
If you've made it this far—reading through the data, the charts, the history, and the heart of this message—this is no longer just a policy paper. It is a moment of reflection. A moment to pause and feel. This is not a call to action against a specific politician, nor is it aimed at one political party. This is an opportunity for edification—for the soul, the mind, the well-being, and the collective consciousness of our nation.
Far too often, we've chosen roads that pit us against one another. We've politicized compassion and moralized division. In John C. Maxwell's powerful book High Road Leadership, he outlines the difference between low road, middle road, and high road leadership. The low road leads with spite, the middle with complacency, but the high road leads with love, values, and purpose. I implore you to examine that distinction—not just as a reader, but as a leader in your home, your community, your profession, your nation.
Many of today's policies feel like they're born from the low road. They lack grace, foresight, and understanding. This commentary is my attempt to choose the high road—a path not of anger, but of truth, not of blame, but of belonging.
Let us not forget: this nation was built atop the displacement, the erasure, and the blood of millions of Native Americans, who committed no crime but lived here first. Every other group arrived later—some by force, others by hunger, hope, or hardship. But we all came from somewhere else. That truth remains undeniable.
Look at the map. The United States is not an isolated entity. It is part of a massive landmass—North America—connected to Canada, Mexico, Central America, and beyond to South America. From Chile to Alaska, from Haiti to Bolivia, from Puerto Rico to Guatemala, we are one connected people. And throughout our history, the belief that one group is superior to another has led to atrocities—slavery, genocide, exclusion, internment, and family separation.
The descendants of those forced to build this country, particularly in the South, still bear the legacy of that trauma. The Mexicans in the Southwest are often called immigrants on land that was once Mexico. Texas. Arizona. California. These weren't "acquired"; they were rebranded. And those who lived here—whether by Spanish, French, African, or Indigenous lineage—are still fighting to belong in a country they helped to shape.
So now, in 2025, we must ask ourselves: What kind of future are we building? What policies do we truly support, not out of fear, but out of fact? Not out of inherited bias, but out of a renewed sense of belonging?
If all immigrants were to disappear—those undocumented, visa holders, green card carriers—what would remain? Who would harvest the crops, care for our children, clean our hospitals, fix our roofs, develop our software, and ye, —teach our children and tend to our elderly? Would we still be America?
This is not hyperbole. This is a soul check.
And let me be honest with you: many of us—myself included—are in the latter half of life. We have fewer sunsets ahead than behind. The question now becomes: What legacy will we leave? Will we teach our children to build bridges or walls? Will we model love or resentment? Will we empower unity, or repeat the sins of division?
The next generation may not be as forgiving.
We must start today. We must lift our gaze. We must be the difference.
Edify your community. Uplift your neighbors. Speak the truth, even when it trembles your voice. When you see something that threatens the dignity of others, name it. Challenge it. Replace it.
Let us never forget what happened to the Indigenous. To the enslaved. To the interned. To the deported. To the marginalized. Because when we forget, we repeat.
As you close this piece—whether you agree with every statistic or not—know this: I stand. I stand for justice, for humanity, and for the belief that America's best days are not behind us if we choose to walk forward together.
So, whether you support this position or not, I only ask one thing of you:
Just stand.
Thank you.
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Empowering Families. Strengthening Communities. Building a Legacy of Leadership.
I remain at your service...
Me quedo a su servicio,
Dr. James C. Rodríguez, MSW, CADC
President & CEO
Fathers and Families Coalition of America