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An immigration researcher at the Cato Institute found that the Trump administration is "raking in billions of dollars in immigration fees and not providing the adjudications that applicants are entitled to."
The US State Department under President Donald Trump has been accused of stealing more than a billion dollars from immigrants and sponsors in what experts are calling “the largest fraud in the history of the US immigration system.”
A report published last week by the Cato Institute, written by director of immigration studies David J. Bier, found that the State Department and Department of Homeland Security were receiving millions of applications from immigrants whom Trump has made ineligible for legal status and pocketing the fees without ever processing the requests.
"The US government collected over $1 billion in immigration fees then refused to process the applications," said Austin Kocher, a fellow at Immigration Lab and a professor at Newhouse and Syracuse University in a social media post breaking down the report on Monday. "No denials. No refunds. Just silence."
The report zeroes in on a series of policies signed by Trump and enacted by Secretary of State Marco Rubio and US Citizenship and Immigration Services (USCIS) head Joseph Edlow, which have collectively barred nationals from 92 countries from immigrating to the US.
One proclamation signed by Trump in December bans legal entry and most visas for the nationals of 40 nations—including Cuba, Venezuela, Nigeria, Iran, and Haiti—based on nationality. A memo sent by Edlow extended the freeze to many USCIS immigration-benefit applications for people from targeted countries already living in the US, including work authorization and permanent residency filings
Another State Department policy bans visa applications from immigrants in 75 countries from being processed indefinitely, purportedly based on data showing that residents of those countries use welfare at disproportionately high rates.
These policies block more than 320,000 people abroad from entering the US and potentially as many as 561,000 potential permanent residents when those already living in the US are considered.
Although people from these countries are categorically denied immigrant visas and most other visa types under a series of travel bans signed by Trump, the government is still collecting fees for visas, work permits, and green cards.
The report cited evidence that the department has directed consular officers that they "should not counsel applicants or advise them" that they are subject to the bans when they come in for their interviews, because it "could be seen as pre-adjudication."
Upon revealing this directive last month, immigration attorney Curtis Morrison described it as a way that "embassies scam visa applicants subject to the travel ban out of fees."
As Bier explained:
To immigrate to the United States or to obtain authorization to work or travel internationally, noncitizens must usually pay a fee to have their applications processed. USCIS’s immigration fee revenues were nearly $7 billion, and the Consular Affairs budget was about $6 billion.
The fees stack up. For instance, to sponsor a spouse, a US citizen must pay a $675 fee to USCIS to petition for their spouse to obtain lawful permanent residence. Then, the immigrant must pay $1,440 to adjust status from temporary to permanent residence. That application takes so long that people usually pay $560 for the spouse to receive an employment authorization document, so the total fees can add up to $2,675.
Bier estimated that more than 2 million applications were affected by the bans, with fees coming primarily from work permit filings and permanent residency or immigrant visa applications.
He explained that these fees are difficult to track precisely because the government does not publish detailed statistics on them. He was also forced to rely on out-of-date fee statistics from 2023-24 because the Trump administration "has simply stopped publishing most statistics."
That said, Bier noted that the numbers are most likely to “understate reality” because they include only those who likely had their requests processed in the past year, not those whose processing was delayed by backlogs.
Of the more than $1 billion in fees the Trump administration would have collected for services it never rendered, data from previous years suggested that about $543 million came from Cuban immigrants, who filed about 935,000 applications during the period under review.
The next highest were Venezuelans, who paid an estimated $138 million in fees. Iranians, Haitians, and Afghans were also among the nationalities with the highest numbers of unprocessed applications.
The Trump administration has used high-profile instances of fraud committed by members of immigrant groups, such as Somalis in Minneapolis, to cast aspersions upon entire nationalities and target them for immigration bans and attacks by federal law enforcement.
However, as Bier explained before the Senate Judiciary Committee last month, based on the findings of a Cato report, "immigrants aren't to blame" for most welfare fraud, accounting for just 5% of it, 31% less per capita than native-born US citizens.
He argued that the Department of Homeland Security "isn't anti-fraud" but instead "openly carrying out the largest fraud in the history of the US immigration system... raking in billions of dollars in immigration fees and not providing the adjudications that applicants are entitled to."
"DHS and State can deny anyone who fails to make their case. Instead, this administration is pocketing thousands of dollars from hardworking Americans and their relatives, including spouses and minor children of US citizens, and then not even looking at their applications," he said. "This is a scam. This is fraud."
One critic predicted the policy would "exacerbate civil liberties harms" if enacted.
Visiting the US as a tourist could soon become significantly more onerous under a new plan being mulled by the Trump administration.
According to a Tuesday report in the New York Times, US Customs and Border Protection (CBP) this week filed a new proposal that would force visitors to submit up to five years' worth of social media posts for inspection before being allowed to enter the country.
In addition to social media history, CPB says it plans to ask prospective tourists to provide them with email addresses they've used over the last decade, as well as "the names, birth dates, places of residence, and birthplaces of parents, spouses, siblings, and children."
The policy would apply even to citizens of countries that have long been US allies, including the UK, Germany, Australia, and Japan, which have long been exempt from visa requirements.
Sophia Cope, a senior staff attorney for the Electronic Frontier Foundation, told the Times that the CBP policy would "exacerbate civil liberties harms."
Cope added that such policies have "not proven effective at finding terrorists and other bad guys" but have instead "chilled the free speech and invaded the privacy of innocent travelers, along with that of their American family, friends and colleagues."
Journalist Bethany Allen, head of China investigations at the Australian Strategic Policy Institute, expressed shock that the US would take such drastic measures to scrutinize the social media posts of tourists.
"Wow," she wrote in a post on X, "even China doesn't do this."
In addition to concerns about civil liberties violations, there are also worries about what the new policy would do to the US tourism industry.
The Times noted in its report that several tourism-dependent businesses last month signed a letter opposing an administration proposal to collect a $250 "visa integrity fee," and one travel industry official told the paper that the CBP's new proposal appears to be "a significant escalation in traveler vetting."
The American tourism industry has already taken a blow during President Donald Trump's second term, even without a policy of forcing tourists to share their social media history.
A report released on Wednesday from Democrats on the Senate's Joint Economic Committee (JEC) found that US businesses that have long depended on tourism from Canada to stay afloat have been getting hit hard, as Canadian tourists stay away in protest of Trump's trade war against their country.
Overall, the report found that "the number of passenger vehicles crossing the US-Canada border declined by nearly 20% compared to the same time period in 2024, with some states seeing declines as large as 27%."
Elizabeth Guerin, owner of New Hampshire-based gift shop Fiddleheads, told the JEC that Canadians used to make up to a quarter of her custom base, but now "I can probably count the number of Canadian visitors on one hand."
Christa Bowdish, owner of the Vermont-based Old Stagecoach Inn, told the JEC that she feared a long-term loss in Canadian customers, even if Trump ended his feud with the nation tomorrow.
"This is long-lasting damage to a relationship and emotional damage takes time to heal," she said. "While people aren’t visiting Vermont, they’ll be finding new places to visit, making new memories, building new family traditions, and we will not recapture all of that."
“Marco Rubio has claimed the power to designate people terrorist supporters based solely on what they think and say,” said one free speech advocate.
Free speech advocates are sounding the alarm about a bill in the US House of Representatives that they fear could allow Secretary of State Marco Rubio to strip US citizens of their passports based purely on political speech.
The bill, introduced by Rep. Brian Mast (R-Fla.), will come up for a hearing on Wednesday. According to The Intercept:
Mast’s new bill claims to target a narrow set of people. One section grants the secretary of state the power to revoke or refuse to issue passports for people who have been convicted—or merely charged—of material support for terrorism...
The other section sidesteps the legal process entirely. Rather, the secretary of state would be able to deny passports to people whom they determine “has knowingly aided, assisted, abetted, or otherwise provided material support to an organization the Secretary has designated as a foreign terrorist organization.”
Rubio has previously boasted of stripping the visas and green cards from several immigrants based purely on their peaceful expression of pro-Palestine views, describing them as "Hamas supporters."
These include Columbia protest leader Mahmoud Khalil, who was arrested by Immigration and Customs Enforcement (ICE) after Rubio voided his green card; and Rumeysa Ozturk, the Tufts student whose visa Rubio revoked after she co-wrote an op-ed calling for her school to divest from Israel.
Mast—a former soldier for the Israel Defense Forces who once stated that babies were "not innocent Palestinian civilians"—has previously called for "kicking terrorist sympathizers out of our country," speaking about the Trump administration's attempts to deport Khalil, who was never convicted or even charged with support for a terrorist group.
Critics have argued that the bill has little reason to exist other than to allow the Secretary of State to unilaterally strip passports from people without them actually having been convicted of a crime.
As Kia Hamadanchy, a senior policy counsel at the American Civil Liberties Union, noted in The Intercept, there is little reason to restrict people convicted of terrorism or material support for terrorism, since—if they were guilty—they'd likely be serving a long prison sentence and incapable of traveling anyway.
“I can’t imagine that if somebody actually provided material support for terrorism, there would be an instance where it wouldn’t be prosecuted—it just doesn’t make sense,” he said.
Journalist Zaid Jilani noted on X that "judges can already remove a passport over material support for terrorism, but the difference is you get due process. This bill would essentially make Marco Rubio judge, jury, and executioner."
The bill does contain a clause allowing those stripped of their passports to appeal to Rubio. But, as Hamadanchy notes, the decision is up to the secretary alone, "who has already made this determination." He said that for determining who is liable to have their visa stripped, "There's no standard set. There’s nothing."
As Seth Stern, the director of advocacy at the Freedom of the Press Foundation, noted in The Intercept, the language in Mast's bill is strikingly similar to that found in the so-called "nonprofit killer" provision that Republicans attempted to pass in July's "One Big Beautiful Bill" Act. That provision, which was ultimately struck from the bill, would have allowed the Treasury Secretary to unilaterally strip nonprofit status from anything he deemed to be a "terrorist-supporting organization."
Stern said Mast's bill would allow for "thought policing at the hands of one individual."
“Marco Rubio has claimed the power to designate people terrorist supporters based solely on what they think and say,” he said, "even if what they say doesn’t include a word about a terrorist organization or terrorism."