The issue of Social Security money being wasted on illegal immigrants has been a topic of concern and debate. While the idea that millions of dollars are being fraudulently paid to undocumented immigrants might seem alarming, the reality is more complex.
Firstly, it’s important to understand that Social Security numbers are sometimes used by undocumented immigrants to work and pay taxes. However, these individuals do not receive Social Security benefits because they are not eligible. Instead, they contribute to the system through payroll taxes, which actually help increase the program’s funds. According to Alex Nowrasteh, a vice president at the Cato Institute, undocumented immigrants often use Social Security numbers that belong to people over 100 years old, who are not necessarily receiving benefits themselves[1].
In fact, undocumented immigrants contribute significantly to the U.S. economy. They pay billions of dollars in federal income taxes and state and local taxes, creating surpluses in both Social Security and Medicare trust funds[3]. Despite these contributions, they are denied access to the benefits that other taxpayers receive.
The Social Security Administration has faced issues with improper payments, but these are not solely due to undocumented immigrants. A 2024 investigation found that the SSA made about $71.8 billion in improper payments from fiscal years 2015 to 2022, often due to deceased beneficiaries not being marked as such[1].
In summary, while there are concerns about the misuse of Social Security numbers by undocumented immigrants, the narrative that millions of dollars are being wasted on them is misleading. Instead, these immigrants contribute to the system without receiving benefits, which can actually help stabilize the program financially. Addressing the issue requires a nuanced approach that considers both the economic contributions of undocumented immigrants and the need for efficient management of Social Security funds.
