Migrant Influx Strains NYC, Chicago, Denver Budgets, S&P Says

The influx of asylum seekers and other migrants crossing the southern US border is creating budget stress for three of the nation’s largest cities, according to S&P Global Ratings.

New York City in particular, along with Chicago and Denver, are revising upward their estimates for spending related to asylum seekers, and without more state and federal government support, these costs could strain budgets and pressure credit quality, S&P strategists led by Felix Winnekens said in a report published Tuesday.

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“Given current political dynamics in Washington D.C. and the upcoming presidential election, we do not consider additional federal support likely,” the strategists wrote. {snip}

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New York City spent $1.45 billion in fiscal 2023 on migrant costs, and expects to spend a combined $9.1 billion housing migrants in fiscal years 2024 and 2025.

Chicago spent $275 million on such services in fiscal 2023, though the city’s 2024 budget only allocated $150 million toward the effort to house undocumented new arrivals.

Denver paid approximately $46 million in fiscal 2023 for migrant support services but the city has already identified significant cost overruns related to its migrant support programs, which could contribute to an operating deficit.

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