Immigration is good for the US economy and for the fiscal picture at the federal level, but some local areasexperience adverse fiscal impacts when new immigrants arrive. Edelberg and Watson propose a transparentsystem for redistributing resources from the federal government to these localities. Local areas wouldreceive $2,500 annually for each adult immigrant who arrived to the US within the past five years withouta college degree—those more likely to generate negative fiscal flows at the subnational level. The fundswould take the form of unrestricted transfers to local educational agencies through the existing Impact Aidprogram and to Federally Qualified Health Centers. This support would help to offset educational, health,and other costs to local areas associated with immigrant inflows, and more equitably share the overall fiscaland economic benefits of immigration.
