Institute for Justice and Democracy in Haiti

Significant Losses to U.S. Taxpayers & GDP if TPS for Haitians Not Extended, Report Finds

A recent report by the Immigrant Legal Resource Center finds there will be significant economic repercussions within the U.S. if Temporary Protected Status (TPS) is not extended for Haiti, El Salvador and Honduras. Haiti’s TPS designation is the first of the three countries set to expire in July, if DHS does not grant an extension, and 46,558 Haitians currently residing in the U.S. under this status would face deportation. The report shows that allowing Haiti’s TPS to expire would reduce U.S. GDP by $2.8 billion over a decade and cost taxpayers $468 million to enforce the deportations.

Below is the Executive Summary of the report. Click HERE for the original report.

Economic Contributions by Salvadoran, Honduran and Haitian TPS Holders: The Cost to Taxpayers, GDP, and Businesses of Ending TPS

Amanda Baran and Jose Magaña-Salgado with Tom K. Wong, Immigrant Legal Resource Center

April 2017

I. Executive Summary

In the next two years, the current Administration, through the U.S. Department of Homeland Security (DHS), will consider whether to extend designations of Temporary Protected Status (TPS) for all countries that currently hold TPS.1 TPS is a form of immigration status that provides employment authorization and protection from deportation for foreign nationals who cannot be safely returned to their home countries.1 In terms of countries with the largest share of TPS recipients, the Trump Administration will decide whether to terminate the immigration status of over 300,000 immigrants from El Salvador, Honduras, and, most imminently, Haiti.2 In light of this Administration’s radical increase of interior and exterior enforcement through executive orders, funding requests, and policy guidance, the continued existence of TPS for these three countries is very much at risk. Thus, it is critical to determine the economic impact that termination of TPS for these three countries would have on taxpayers, businesses, and nation’s economy.

Using data from the American Community Survey (ACS), this report estimates the number of immigrants that would be impacted by ending TPS and examines the economic consequences of terminating TPS for El Salvador, Honduras, and Haiti. Among the key findings of this report:

▪  There are approximately 186,403 Salvadorans, 70,281 Hondurans, and 46,558 Haitians who currently hold a valid grant of TPS, for a total of approximately 300,000 individuals.

▪  As the DHS Secretary must decide whether to issue renewals or terminations 60 days before expiration,3 decisions on TPS extensions for Haiti, El Salvador, and Honduras will likely occur May 2017, January 2018, and November 2017, respectively.

▪  Deporting all Salvadoran, Honduran, and Haitian TPS holders would cost taxpayers $3.1 billion dollars.

▪Ending TPS for these three countries would result in a $6.9 billion reduction to Social Security and Medicare contributions over a decade.

▪  Ending TPS for these three countries would lead to a $45.2 billion reduction in GDP over a decade.

▪  The wholesale lay-off of the entire employed TPS population from these three countries would result in $967 million of turnover costs, e.g. costs employers incur when an employee leaves a position.

▪  The loss in GDP and turnover costs would be felt most acutely in the locations where Salvadorans, Hondurans, and Haitians are primarily located, including major metropolitan areas in Florida, New York, California, Texas, Maryland, and Virginia.

Click HERE for the original report.

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