Undocumented workers play a significant role in funding public programs, despite being largely ineligible for federal benefits. Their contributions come primarily through taxes, which help sustain essential government services. Here’s how:

• Payroll Taxes (Social Security & Medicare) – Many undocumented workers use borrowed or falsified Social Security numbers to secure employment. As a result, their employers withhold FICA taxes—just as they would for any legal worker. However, because these workers lack valid SSNs, they will never be able to claim Social Security or Medicare benefits. Instead, their contributions accumulate in the Earnings Suspense File (ESF) maintained by the Social Security Administration (SSA), which holds billions of dollars in unclaimed payments.
• ITIN Tax Payments – Some undocumented individuals file income taxes using an Individual Taxpayer Identification Number (ITIN) issued by the IRS. This allows them to pay federal, state, and local taxes, even though they receive little to no direct benefits in return.
• Sales and Excise Taxes – Like all consumers, undocumented workers pay sales taxes on everyday purchases, which funnel revenue into state and local economies.
• Property Taxes (Directly or Indirectly) – If they own property, they pay property taxes outright. Even those who rent contribute indirectly, as landlords factor property taxes into rental costs—helping fund public services like schools, roads, and emergency response systems.
• Unemployment and Workers’ Compensation Contributions – Employers are legally required to pay into unemployment insurance and workers’ compensation programs on behalf of their workers, regardless of immigration status. However, most states prohibit undocumented individuals from claiming unemployment benefits, making them contributors to a system they cannot access.

Ultimately, undocumented workers pump billions of dollars annually into Social Security, Medicare, and other tax-funded programs—despite having little to no access to the benefits these systems provide. In many ways, they are net contributors to the U.S. economy.