Mary Kaltenberg

EconHack 2024 — NYC Migrant Crisis

4th Annual EconHack @ Pace University. Co-hosted with Economics Society and Women in Economics.

Special thanks to Kristina Nadia Krichmaryov, Kristina Nikolaeva Nasteva, Grace Elizabeth McGrath, Viktoriia Yevtushenko, and Suraj Sharma. Special thanks to the judges: Dr. Veronika Dolar, Dr. Kier Hanratty, and Prof. Lilay Hagos.

Winners

1st Place — Team41

2nd Place — MVC

3rd Place — The Subway Rats

4th Place — teamwon

The Problem: NYC Migrant Crisis

Since Spring 2022, when the governors of Florida and Texas started sending asylum-seekers and migrants to NYC, there has been an influx of 214,600 asylum-seekers and migrants entering NYC.

The combination of a 1980s-era local law on “right to shelter” rules and an increase in migrants being bused to NYC has placed a strain on the city’s shelter system and budget. In addition, the slow processing of immigration and strict restrictions on work authorization for new immigrants means migrants have limited ability to independently support themselves as they await immigration status decisions. This financial pressure has led many New Yorkers to question if there is a relationship between migrants and crime. The municipal government of NYC is seeking innovative solutions to address the migrant crisis.

Objectives

Propose a novel policy intervention that addresses at least two of the following objectives:

Requirements

Context

Since spring 2022, 214,600 asylum-seekers and migrants have arrived in New York City, with about 69,000 still relying on city shelter services costing the city $1.7 billion. Families with children represent 78% of the shelter population. As of mid-October 2024, over 64,000 new arrivals were living in New York City shelters. Under the city’s “right to shelter” rules, temporary emergency housing is provided to asylum seekers, but this has been limited to 30 days for single adults and 60 days for families. Thousands of people have been removed from shelters after surpassing their stay limit, leaving many on the streets.

Unlike past immigration waves, many of these individuals lack resources and are relying heavily on the city’s shelter system, straining public services. This has led to financial pressure on the city, prompting emergency measures and calls for federal immigration reform to address the ongoing crisis. The rapid increase, while not unprecedented historically, has placed pressure on the city’s shelter system and fiscal resources. The city’s asylum seeker costs are projected to grow from $1.5 billion in FY 2023 to $4.9 billion by FY 2025. The city’s resources, especially homeless shelters, are overwhelmed, raising broader questions about shelter, mental health, and supporting vulnerable communities. Experts, activists, and officials are engaging in discussions to explore solutions and opportunities to address these challenges while reinforcing New York’s role as a migrant sanctuary.

The access to public benefits for noncitizens in the U.S. varies significantly. Many, especially those who aren’t permanent residents, struggle to obtain essential support. However, some states allow certain groups like asylum seekers and TPS holders to access health insurance, particularly for children and pregnant individuals. Cubans and Haitians have unique benefits that align more closely with those offered to refugees. Federal programs like the Shelter and Services Program help, but there are ongoing issues with reimbursement and funding limits. Cities are managing large numbers of migrants but face significant challenges in securing stable housing and long-term integration support.

While there are efforts to improve work authorization processing and community sponsorships, substantial reforms at the federal level are necessary to better support cities and help migrants integrate into their new communities effectively. Some of these efforts include the Biden administration making 472,000 Venezuelans eligible for temporary protected status (TPS), allowing them to live and work in the U.S. for up to 18 months. However, long-term solutions depend on U.S. Congress changing migration laws, such as reducing the wait time for work permits for asylum seekers. A bill introduced in March by Representative Chellie Pingree (D-ME) proposes reducing the wait time to 30 days. Additionally, the U.S. Citizenship and Immigration Services lacks sufficient staff to clear a backlog of work authorization cases, leaving migrants waiting up to 20 months for documents.

Several factors drive migrants from Latin America northward. Major crises include Venezuela’s collapsing economy under President Nicolás Maduro, leading to over 7 million people fleeing, and Haiti’s ongoing struggles with the aftermath of the 2010 earthquake and gang violence, which have forced nearly 2 million Haitians to leave. Additionally, Cuba’s worsening economy has prompted 1 million migrants to leave the island. Other issues, like hunger in southern Mexico and Central America, surging violence in Ecuador, and climate-related disasters also push people to migrate. Many Latin American migrants initially resettle within the region, but growing numbers are heading to the U.S. due to limited economic opportunities.

Further reading on the economic benefits of immigrants: NYC Comptroller — Facts, Not Fear

Data