Labor Market Impacts of Immigration Policy Reform: A State-Level Analysis
August 2026
Workforce, fiscal impact, and border economics
Immigration policy; securing America's borders, controlling the number of foreign nationals who enter the country, and ensuring assimilation into American society is the most important issue confronting U.S. policy makers. The nation state is the best organizing principle for the global population. Nation states have been long defined by secure borders, a common language, a shared culture, and a nation of citizens dedicated to the common good. U.S. immigration policy as administered by successive Presidents and Congresses from 1965 to 2025 ignored those tenets and threw open U.S. borders to all who wish to enter, legally or illegally, and discouraged assimilation. American citizens, American tax payers, have paid a high price.
Key Research Questions
How do different immigration levels affect native-born wages and employment?
What is the net fiscal impact of immigration on federal and state budgets?
How do visa categories shape human capital and innovation outcomes?
What are the economic consequences of enforcement-first versus pathway-first approaches?
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August 2026
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Expert Commentary
"Sound immigration policy requires rigorous data, not ideology. That is what PolicyMatters USA delivers."
PolicyMatters USA Research Team
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Deficit trajectories, entitlement reform, and generational equity
Trillion dollar yearly budget deficits, trillion dollar annual interest payments on the national debt, and nearly $40 trillion in total national debt outstanding should be a warning to us all. Fiscal policy is out of control. Led by both political parties, trillion dollar annual deficits are the norm, and more and more debt seemingly doesn't matter. It does and it will. America is on a unsustainable fiscal path at the federal, state, and local level.
Key Research Questions
At what debt-to-GDP ratio does federal borrowing begin to crowd out private investment?
Which entitlement reforms deliver the greatest fiscal savings with the least economic disruption?
How do interest rate changes affect the federal debt service burden?
What are the distributional consequences of deficit reduction across income groups?
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September 2026
June 2026
March 2026
Expert Commentary
"Sound federal debt policy requires rigorous data, not ideology. That is what PolicyMatters USA delivers."
PolicyMatters USA Research Team
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Tariffs, agreements, and America's global competitive position
The U.S. trade deficit in goods set another yearly record in 2025 reaching $1.23 trillion. 2025 was the fifth year in a row the U.S. trade deficit in goods exceeded $1 trillion. America is reliant on a strategic foe for many of the goods needed each day from military equipment to pharmaceuticals and the base ingredients to the metals needed for renewable power to basic consumer goods. The transfer of wealth from America to foreign countries and the subsequent loss of ownership of trillions of dollars of U.S. assets should be a serious national security concern. The loss of jobs, skills, expertise, and infrastructure has weakened America. For nearly 50 years America has practiced a unilateral free trade policy that has wrecked havoc on the domestic economy.
Key Research Questions
What are the net welfare effects of recent tariff escalation on American households?
How do trade agreements affect manufacturing employment and wages?
What is the relationship between trade openness and domestic innovation?
How should the U.S. approach trade policy with China in the next decade?
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July 2026
April 2026
January 2026
Expert Commentary
"Sound trade policy requires rigorous data, not ideology. That is what PolicyMatters USA delivers."
PolicyMatters USA Research Team
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Regulatory burden, reform analysis, and economic cost measurement
Excessive regulation is strangling the U.S. economy. For decades American businesses and entrepreneurs have been slowed by an ever growing list of laws, rules, and regulations at the federal, state and local level. According to the Office of the Federal Register, at the federal level alone there are 430 government departments and agencies imposing rules and regulations upon households and businesses. To enhance productivity and efficiency across the economy the regulatory burden must be reduced to free up capital and labor.compliance costs, shapes market structure, and affects business formation and investment. Our research quantifies the economic burden of the regulatory state and evaluates the evidence base for specific regulatory interventions.
Key Research Questions
What is the aggregate annual cost of federal regulation on the U.S. economy?
Which regulatory domains impose the highest costs relative to their stated benefits?
How does regulatory uncertainty affect business investment and hiring decisions?
What deregulatory reforms have the strongest evidence base for economic benefit?
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August 2026
May 2026
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Expert Commentary
"Sound regulation policy requires rigorous data, not ideology. That is what PolicyMatters USA delivers."
PolicyMatters USA Research Team
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Human capital, school choice, and workforce readiness
Education is the foundation of human capital formation and long-run economic growth. The connection between high quality education and economic prosperity of a society has been well established. Average income and education attainment levels have been positively correlated over time. The skill level of a labor force and the price of attaining those skills are key elements to a nation's standard of living and international competitiveness. How to teach, what to teach, the language to teach in, the quality of education, who goes to school and who doesn't, and who pays have been decisions challenging American educators and policy makers for decades. For more than 30 years there has been recognition by employers, parents, and policy makers America's public education system is failing. Six years on from the COVID lock downs, that process has been accelerated.
Key Research Questions
What is the economic return on K–12 public education spending at the state level?
How do school choice programs affect student outcomes and public school performance?
What is the relationship between higher education subsidies and tuition inflation?
How should workforce training policy adapt to automation and labor market disruption?
Recent Research
September 2026
June 2026
March 2026
Expert Commentary
"Sound education policy requires rigorous data, not ideology. That is what PolicyMatters USA delivers."
PolicyMatters USA Research Team
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