Washington — Nearly 152,000 Salvadoran nationals temporarily residing in the United States under the Temporary Protected Status (TPS) program are contributing an estimated $5.4 billion annually to the U.S. economy, according to a new analysis that underscores the economic stakes of a program facing increasing political uncertainty.
The study, which draws on data from the Migration Policy Institute and the U.S. Census Bureau, found that TPS recipients from El Salvador alone account for roughly 90,000 workers in key sectors such as construction, transportation, agriculture, and service industries. Their combined tax contributions — including federal income taxes, payroll taxes, and state and local levies — total approximately $1.5 billion per year, researchers said.
TPS was first granted to Salvadorans in 2001 following a pair of devastating earthquakes that ravaged the Central American nation. The designation has since been extended and reauthorized multiple times, allowing hundreds of thousands of individuals to live and work legally in the U.S. while their home country remains deemed unsafe for return. As of late 2023, more than 300,000 people of Salvadoran origin held TPS designation, making them one of the largest groups protected under the program.
Economists have long argued that TPS recipients play a vital role in sustaining labor markets, particularly in regions where demographic shifts and aging populations have created workforce shortages. In states like California, Texas, and Florida, Salvadoran TPS holders are often concentrated in metropolitan areas where their presence supports industries that rely heavily on immigrant labor.
“These individuals are not just surviving — they’re helping drive economic activity,” said Dr. Elena Rodriguez, an economist specializing in migration studies at Georgetown University. “Their spending power circulates through local supply chains, supports small businesses, and fills critical gaps in sectors that would otherwise struggle to find workers.”
Beyond direct employment, the report highlights the multiplier effect of TPS income. When combined with remittances sent back to family members in El Salvador — which totaled over $6 billion in 2022 — the economic footprint of TPS holders extends far beyond U.S. borders. This dual impact has made the program a quiet but significant thread in the fabric of bilateral relations between Washington and San Salvador.
However, the future of TPS remains tenuous. The program requires continuous reauthorization by the Department of Homeland Security, and former President Donald Trump’s administration moved to terminate protections for several countries, including El Salvador, citing national security concerns and the expiration of original humanitarian conditions. Courts have since blocked full termination, but legal battles continue to swirl around the program’s long-term viability.
President Joe Biden’s administration has largely maintained existing TPS designations, offering some stability to recipients who have spent decades building lives in the U.S. Yet advocacy groups warn that without legislative action to provide a pathway to permanent residency, TPS holders remain in limbo, unable to fully plan for the future or access benefits like federal student aid or Social Security credits.
Congress has considered legislation such as the bipartisan TPS Act, which would offer a route to lawful permanent status for eligible recipients. But despite broad public support — polling shows a majority of Americans favor protecting TPS holders — progress in Congress has stalled amid partisan gridlock over broader immigration reform.
For many Salvadoran families, the uncertainty is personal. Maria Gonzalez, a TPS holder from Houston who requested anonymity due to her immigration status, described the daily reality of living with temporary protections. “Every day I wake up grateful to be here, but I also worry — what happens when this ends?” she said. “We’ve built our lives around this. Our children were raised here. This is home.”
Gonzalez, who works in commercial construction, noted that her payroll taxes help fund programs like Medicare and Social Security, even though she may never be able to collect those benefits herself. “It feels unfair,” she said, “but I keep working because I know my community depends on me.”
The new analysis adds urgency to calls for congressional action. With midterm elections approaching and immigration policy poised to remain a central issue in national politics, advocates say the economic data should inform the debate. They argue that removing hundreds of thousands of productive workers — many of whom have no meaningful ties to El Salvador — could disrupt entire industries and cost the U.S. economy billions in lost output.
“This isn’t just about compassion,” said Ana Martinez, director of the Washington Office on Latin America. “It’s about recognizing that these are people who have invested their lives in this country. Deporting them doesn’t make economic sense — it makes no sense at all.”
As lawmakers deliberate, the clock continues ticking for TPS holders like Gonzalez, whose legal status is set to expire next year unless renewed. For now, their contributions — both seen and unseen — remain woven into the economic landscape of the United States, quietly reinforcing a truth that advocates say cannot be ignored: the cost of inaction may be greater than the cost of action.
