By Prime Path Immigration Law Firm Limited USA, on Immigration Updates
The Congressional Budget Office (CBO) has warned of significant demographic and economic shifts resulting from President Donald Trump’s restrictive immigration policies, particularly the 2025 Reconciliation Act. This legislation, which channels $170 billion to immigration and border enforcement, including $29.9 billion for the operations of the Immigration and Customs Enforcement (ICE) and the hiring of 10,000 new officers, is expected to sharply reduce population growth by accelerating deportations and increasing detentions. As a result, deaths are projected to outnumber births by 2031, two years earlier than previously estimated. The loss of nearly 290,000 immigrants from the labor force between 2026 and 2029 is set to reduce the available workforce, especially in industries like agriculture and food processing that heavily depend on immigrant labor.
Economically, this reduction in labor supply is driving up labor costs, contributing to inflationary pressures. Experts, including Moody’s chief economist Mark Zandi, warn that inflation could rise from 2.5% to 4% due to labor shortages caused by deportation and detention. The increased costs of production are already being felt through rising prices in the Producer and Consumer Price Indexes, particularly in sectors tied to immigrant labor. Over time, these trends may lead to a broader slowdown in economic growth, diminished consumer purchasing power, and higher costs for businesses. The CBO’s findings highlight the critical role immigration plays in sustaining labor force growth and economic stability.
For more information on this, and other immigration matters, contact the attorneys at Prime Path Immigration Law Firm Limited USA today.
Reference:
Diego Perez Morales, Trump's Immigration Policy Set to Trigger Worrisome Inflation Surge: CBO, MSN, September 12, 2025, https://www.msn.com/en-us/money/markets/trumps-immigration-policy-set-to-trigger-worrisome-inflation-surge-cbo/ar-AA1MqWzJ?ocid=BingNewsVerp.
