Immigrants Are Critical to a Healthy Economy in Maryland But Face Barriers to Opportunity

Maryland’s immigrant communities are driving economic and population growth in the state, according to a report the Office of the Comptroller recently published. But while immigration positively impacts communities in Maryland and across the U.S., immigrants face significant barriers that make it harder to immigrate and successfully find well-paying or permanent jobs. Although the most impactful policy changes for immigrants are centralized at the federal level, Maryland can also find ways to support immigrants living here. Maryland is already home to large immigrant communities from El Salvador, China, and India, among other countries, and it benefits all Marylanders to ensure that these residents can fully and equitably participate in all facets of life in the state.

In fact, Maryland has made great strides to pass immigrant-friendly policies over several years, which has strengthened our communities and our economy. To name some:

• Senate Bill 167 of 2011/SB 537 of 2019 expanded in-state tuition rates to undocumented students in Maryland provided they meet certain requirements. The 2011 version of the law required students to enroll in a community college before attending a public institute of higher education which was later taken out in the 2019 or current version. This law course-corrected the exclusion of students, many of whom lived in Maryland most of their lives, from accessing and affording higher education due to their immigration status. It opened the door for a greater pool of talent and the next generation of Maryland leaders.
• The Maryland Highway Safety Act of 2013 authorized residents without a Social Security number or “lawful status” to apply for a driver’s license as long as they provided evidence that the applicant filed state income tax returns or was claimed as a dependent on one in the previous two years. This legislation not only allowed immigrants to reap the benefits that come with having proper identification, such as greater access to health and human services, banks, or other areas of daily living that are often taken for granted, it also added additional revenue for the state through the Transportation Trust Fund and other vehicle-related fees.
• Earned Income Tax Credit Expansion of 2021 expanded the state’s refundable earned income tax credit to taxpayers filing income tax returns with an Individual Taxpayer Identification Number (ITIN). This change was monumental as the EITC is an effective anti-poverty tool that, thanks to this expansion, thousands of undocumented Marylanders and citizen children in mixed-status families were able to access.
• Access to Care Act of 2024 requires the state to apply for a state innovation waiver (1332 waiver) that would open up the state’s health exchange (Maryland Health Benefit Exchange) to Marylanders regardless of immigration status to purchase health insurance. This bill opens up the opportunity for more Marylanders to be able to access health insurance, specifically in our immigrant community who, for many reasons related to immigration status, are often excluded from accessing health coverage and thus have a high uninsured rate. Having health coverage benefits everyone by making our communities healthier, lowering out-of-pocket costs for those previously uninsured, and by allowing employees to take care of themselves so they don’t have to miss work.

Diversity, Population Growth, and Immigrants in Maryland

One of Maryland’s greatest assets is found in its diverse population. From 2016 to 2022, Maryland’s immigrant population grew by 12%, surpassing the non-immigrant population which grew only 1% in the same time frame. In fact, Maryland ranked 8^th in the nation for net international migration from 2022 to 2023. Although smaller in size, Maryland is a densely populated state and thus much more diverse than its neighboring states. The pandemic stalled international migration but it has since resumed.

Maryland’s immigrant community is contributing to population growth in the state, making up 17% of the entire state population. This is important given that the state has experienced population decline due to a variety of factors including aging trends, higher costs of living, and migration to other states. Other issues have also factored in localities like Baltimore City, for example, to consistently rank among the top cities with population decline over several years.

Immigrants Help Offset Maryland’s Economic Struggles

Maryland has also struggled with economic growth since prior to the pandemic. However, immigrant Marylanders are great contributors to the well-being of the state’s economy, and have offset some of the struggles the state would otherwise have faced. This is in part due to the majority (56%) of immigrants falling within the prime-age worker age range, those between 25 and 54 years old. In 2023, immigrants made up one-fifth (21%) of the state’s labor force participation rate—or the percentage of the state’s population either working or actively looking for work—which is also a higher percentage compared to neighboring states.

Immigrants are overrepresented in some industries, often those most labor-intensive such as construction. Immigrants also play a crucial role in Maryland’s crab industry, given that most of temporary or seasonal workers in the state work in the crab-processing industry. While immigrants have higher labor force participation than their US-born counterparts in Maryland, they are often unable to take advantage of the vast job opportunities due to constraints often tied to their immigration status. This includes professions in fields that often require higher education such as healthcare, government affairs, or STEM-related occupations.

Immigrants also directly contribute to our state’s economy as taxpayers. In addition to immigrant workers who file income taxes with a Social Security number or work authorization, there are over 100,000 immigrant workers filing taxes with an ITIN in Maryland, paying more than $100 million in taxes after refunds on an annual basis. These workers are also paying into sales and property taxes as consumers and residents of the state. Unfortunately, immigrants are often paying into public services and programs they are not eligible for due to their immigration status. It is only fair that we remove barriers that enable them to benefit from their hard work.

We Need to do More for our Immigrant Communities

While the focus is many times centered on the individual contributions of immigrant workers to population growth and the state economy, immigrants are also members of our community who are raising families and whose children are the next generation of leaders in Maryland. They are our neighbors, co-workers, entrepreneurs and business owners that keep our state moving forward and who bring their unique strengths to our state.

State officials’ interest in analyzing immigration’s impact in Maryland is an opportunity to recognize the significant contributions made by immigrant Marylanders to the state. An even greater recognition, however, should include actionable steps that will remove barriers to employment and overall civic participation. Immigrants’ success in this country is often tied to their immigration status, so it’s important to ensure that workers’ legal presence is not solely tied to their employment by a single employer, as is the case with many temporary worker visas. This can lead to wage disparities or discrimination in the workplace as immigrants cannot switch jobs as can U.S citizens or permanent residents. Worker choice and thus safety are important.

Maryland policymakers can continue reducing barriers that prohibit immigrants from entering local or state government, increase employer education and incentives on the benefits of international talent, and take a firm stance on federal immigration policy that is directed towards congressional leaders and the presidential administration.

Other steps that can be taken to have a more inclusive and robust Maryland community and economy include:

• Passing legislation that remove barriers to all occupational licenses. House Bill 454 of 2023 allows ITIN holders to apply for health care related licenses only. To maximize the earning and tax-paying potential of immigrant workers, we need ensure that we capitalize on their skillset through greater professional development and access to opportunities.
• Appropriating funds to subsidized healthcare on the health exchange for immigrants once the Access to Care Act is fully implemented. While the Access to Care Act is a great step for healthcare access, it’s equally important to ensure that people can afford to buy health coverage.