Cities like New York, Denver, and Chicago could face financial ruin due to the immigration crisis as federal funds fail to meet their requirements.

Significant financial pressure is being put on major cities across the U.S. due to the recent surge of migrants.

According to Simon Hankinson, a senior research fellow at The Heritage Foundation, it is politically unsustainable for the Biden administration to continue the unlimited flow of resources into what essentially amounts to a welfare state network of cities such as New York, Denver, and Chicago.

The ongoing crisis requires more federal assistance and funding for cities like Chicago and New York to lift restrictions on migrant bussing from the South.

According to Debu Gandhi, senior director of immigration policy at The Center for American Progress, the current level of federal funding for state and local governments to assist newcomers is insufficient compared to the need. Congress has allocated only $800 million for a FEMA program nationwide in the last fiscal year.

The amount allocated to cities for migrant services is insufficient, according to cities. For example, the $145 million allocated to New York City is only 10% of what the city spent on migrant services in fiscal 2023, according to the Migration Policy Institute.

Muzaffar Chishti, a senior fellow at the Migration Policy Institute, stated that the housing and services required for individuals new to a place, country, or city are complex issues to manage. As a result, the city, state, and federal government were not adequately prepared to handle them.

The ongoing migrant crisis is putting immense financial strain on cities across the U.S.