The Biden administration is preparing to tackle immigration reform while lowering inflation in the coming year. In an attempt to address a campaign promise and avoid future political trouble, the administration hopes to provide legal status for “Dreamers” while increasing labor supply; a move that might lower inflation.

The president’s advisors know that the current border crisis and rising living costs might prove fatal for his electability in 2024, should he choose to run for a second term. Immigration reform that provides a path to citizenship for the approximately 2 million illegal migrants brought here as minors while making up for the present labor shortage could be the answer.

The Biden administration is plotting to make a fresh push on immigration reform in the new year, looking for ways to provide legal status for so-called “Dreamers” and increase the labor supply to help lower inflation, according to people familiar with the matter.

Although inflation has decreased since June, when it was at 9.1%, wage growth has increased. Combined with a lack of immigrant workers, this could pose a problem. The administration hopes to fill the gap with “newly-legalized Dreamers.”

One obstacle Biden’s plan faces is the new GOP-led Congress. His administration must contend with lawmakers who oppose wide-ranging immigration reform. Making the President’s plan even more difficult is the need to compromise with his progressive base. A plan that legalizes “Dreamers” while injecting life into the workforce might work, according to some.

Republicans would receive increased funding for border security; Democrats would win permanent protection for the roughly 2 million undocumented migrants who were brought here as minors, and the business and agricultural communities would get more visas for high- and low-skilled workers.

Biden officials plan to fine-tune the president’s 2023 agenda, keeping in mind what is legislatively feasible and considering all areas of compromise.

 

 

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