Border Burden in Texas

The influx of immigrants crossing the US-Mexico border raises significant economic concerns, particularly related to the free-rider problem. Public goods such as healthcare and education are generally funded by taxpayer dollars. Public goods are characterized by their non-excludability, meaning that regardless of how much one group contributes to their funding, the goods are available to everyone. This trait in particular can lead to the free-rider problem, especially for border states like Texas. According to Debusmann, thousands of immigrants pour into the US daily, and they are crossing and staying without paying taxes. 

Under the Biden administration, Texas has been ordered to provide accommodation for the immigrants regardless of their immigration status as Biden strives to hold to the United State’s original anthem of being a harbor for refugees. However, this has been a point of contention in the political sphere even resulting in legal battles between the state of Texas and the federal government. This free-rider scenario has resulted in a negative ripple effect on much of the nation lining the border. As of August 9th, Texas Governor Greg Abbott mandated that hospitals collect the immigration status of patients starting November 1, 2024 to “hold the Biden administration ‘accountable’ for its ‘costly and dangerous’ border policies”. In this mandate, Governor Abbott explains that, “Texans should not have to shoulder the burden of financially supporting medical care for illegal immigrants.” This mandate attempts to address the free-rider problem at the southern border: Texans are paying taxes to fund public goods, yet these immigrants are using these goods without paying taxes themselves. This increasing number of immigrants is inadvertently putting strain on the quality and availability of these public resources for everyone else in Texas as a result.