Aristo is absolutely correct in noticing that none of this is...
Vandie@VanDiemen_
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Sep 12, 2024
~4 min read
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Aristo is absolutely correct in noticing that none of this is happening organically.
Here's a very high-level summary of the mechanics of how money flows through the Immigration Industrial Complex, and perhaps a partial answer to the very relevant question - who benefits? 🧵
x.com/Aristos_Reveng…
Here's a very high-level summary of the mechanics of how money flows through the Immigration Industrial Complex, and perhaps a partial answer to the very relevant question - who benefits? 🧵
x.com/Aristos_Reveng…
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To start at the top, taxpayer money is used at federal, state, and local levels to fund "programs" that are used to resettle immigrants inside the United States.
In fed lingo, all programs that provide grants or other forms of assistance are called "Assistance Listings".
In fed lingo, all programs that provide grants or other forms of assistance are called "Assistance Listings".
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The database of all 2,293 Federal Assistance listings can be found at SAM.gov. Every listing details the amount of funding, which department disburses the funds, who can apply, what the funds can be used for, etc.
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For example, here's a link for the listing for "Refugee and Entrant Assistance and Discretionary Grants", which is a program funded since 1980, but has recently been infused with money from the Ukraine and Afghanistan appropriations bills.
sam.gov/fal/98f1634326…
sam.gov/fal/98f1634326…
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Aristo is also correct that the government relies on a network of NGOs for actually administering these programs.
Let's use an immigrant resettlement NGO called "Catholic Community Services" in Salt Lake City as a case study.
ccsutah.org/programs/refug…
Let's use an immigrant resettlement NGO called "Catholic Community Services" in Salt Lake City as a case study.
ccsutah.org/programs/refug…
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NGOs have entire teams whose sole role is to apply to various Assistance Listings for grants. This is their primary means of funding!
All of this is detailed in their IRS Form 990, which they are required to make public, as well as audited financial statements.
All of this is detailed in their IRS Form 990, which they are required to make public, as well as audited financial statements.
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Catholic Community Services of Utah has about 150 employees. They had $21m in revenue in 2023, with about $10.2 coming from government grants. Roughly this same amount was spent on refugee resettlement. (They also have food bank and homeless services they participate in.)
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Their audited financial statements outline exactly which Federal Assistance Listings they are receiving grants from, and for which amounts. Some of this money is "passed through" to them from other NGOs.
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So what is the money actually used for? Primarily housing. These NGOs employ teams of case workers who are responsible for helping refugees get settled in your city, and in order to avoid the risk of public scrutiny or pushback from landlords, they cultivate their own network of residential property management companies (PMs).
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It's important to remember that there is a sharp division between who owns real estate and who manages real estate.
Most commercial multifamily property owners don't want to have to think about the details of finding renters, performing maintenance, etc.
Most commercial multifamily property owners don't want to have to think about the details of finding renters, performing maintenance, etc.
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So the actual landlords usually hire PMs, who they pay anywhere from 6-10% of monthly rental revenues to manage their properties. These PMs have the authority to sign contracts and vet residents without any need for approval or oversight from the actual landlords. Lots of times big commercial property owners don't even bother to have access to the actual contracts being signed with residents.
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So the government wires money to the NGOs who write the checks to the PMs, the immigrants move in, and probably more often than not, the landlord doesn't even know that he's hosting immigrants in his properties.
The NGOs and PMs are the primary beneficiaries in this arrangement (other than the actual immigrant who is getting housing for free, obviously.)
The landlords get a market rate return for their asset, and if they do know, they don't care. The PMs like the arrangement because the NGOs pay their bills on time and have a steady stream of tenants, and the NGOs like the arrangement because they have a friendly network of PMs who find the housing for them. All are enriched at the taxpayer's expense.
The NGOs and PMs are the primary beneficiaries in this arrangement (other than the actual immigrant who is getting housing for free, obviously.)
The landlords get a market rate return for their asset, and if they do know, they don't care. The PMs like the arrangement because the NGOs pay their bills on time and have a steady stream of tenants, and the NGOs like the arrangement because they have a friendly network of PMs who find the housing for them. All are enriched at the taxpayer's expense.
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There are landlords who specifically like to rent to Section 8 or the covid Emergency Rental Assistance programs for the exact same reasons - they like that they don't have to deal with AR issues when the government writes the check.
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One last thought - there are dozens, if not hundreds, of NGOs that do immigrant settlement around the country. Unless there is gross corruption or malpractice, there isn't going to be a good way to get rid of the one bringing immigrants into your community. Another will just pop up in their spot and apply for the same grants.
The solution really needs to come from turning off the spigot of funds that come from taxpayers.
If you have any local or state-level programs, those will be the easiest to get axed from budget bills. But we really need Congress to stop authorizing the billions flowing into the system for housing immigrants and refugees.
The solution really needs to come from turning off the spigot of funds that come from taxpayers.
If you have any local or state-level programs, those will be the easiest to get axed from budget bills. But we really need Congress to stop authorizing the billions flowing into the system for housing immigrants and refugees.