June 23, 2025 – U.S. Immigration and Customs Enforcement (ICE) is grappling with a severe financial crisis, with estimates indicating the agency is already $1 billion over budget as it implements President Donald Trump’s aggressive immigration enforcement policies.
With more than three months remaining in the fiscal year, the cash crunch threatens to derail ICE’s operations, raising concerns about potential violations of U.S. spending laws and prompting calls for emergency funding measures.
President Trump’s immigration agenda, a cornerstone of his second term, has significantly increased ICE’s operational demands.
The administration’s push for mass deportations, targeting an unprecedented 1 million removals annually, has led to a surge in arrests, detentions, and removal flights.
ICE facilities are currently at 124% capacity, holding 51,302 detainees against a funded capacity of 41,500, according to recent data.
This overextension, coupled with expanded operations in Democratic-led cities like Los Angeles, Chicago, and New York, has strained the agency’s resources to the breaking point.
The Department of Homeland Security (DHS), ICE’s parent agency, is at risk of breaching the Anti-Deficiency Act, which prohibits federal agencies from spending beyond their allocated budgets.
Lawmakers from both parties have expressed alarm, with some accusing DHS and ICE of mismanaging funds.
“I have a feeling they’re going to grant themselves an exception apportionment, use the life and safety exception, and just keep burning money,” a former federal budget official told Axios.
Trump’s “Big Beautiful Bill” and Emergency Measures
To address the shortfall, Trump has championed a proposed “Big Beautiful Bill” that could allocate an additional $75 billion to ICE over the next five years.
The legislation, still under consideration in Congress, aims to provide long-term funding for border security, detention facilities, and deportation operations.
However, with the bill’s passage uncertain, Trump could resort to declaring a national emergency to redirect funds from other agencies, a tactic he employed in 2020 to divert nearly $4 billion from the Pentagon for border wall construction.
Chris Marisola, a professor at the University of Houston Law Center and former Defense Department lawyer, noted that such an emergency declaration could unlock broad statutory authorities, granting the president significant discretion to mobilize resources.
“These statutory authorities authorizing the president to declare emergencies… are often written incredibly broadly and invest a lot of discretion in the president,” Marisola said.
The financial strain comes as ICE’s enforcement tactics have sparked controversy.
The agency has intensified raids in courthouses and urban centers, targeting immigrants for expedited removal after case dismissals.
A February 2025 executive order expanded the issuance of Notices to Appear (NTAs), with USCIS reporting 22,100 deportation proceedings initiated since late February, including 1,840 NTAs weekly for asylum and Temporary Protected Status cases.
However, economic concerns have prompted a partial pivot.
On June 13, 2025, Tatum King, a senior ICE official, issued an internal email instructing agents to pause raids on agricultural businesses, hotels, and restaurants, citing their economic importance.
The email specified that operations should focus on human trafficking, money laundering, and drug smuggling, avoiding “non-criminal collaterals.”
This shift followed pressure from farm groups and businesses warning of labor shortages, with 42% of crop farmworkers lacking legal status, according to the Agriculture Department.
Related: Landscapers Are Now Being Swept By ICE While Working
Political and Public Backlash
The crackdown has fueled nationwide protests, including the “No Kings” demonstrations on June 14, 2025, which drew millions to oppose Trump’s policies.
Critics argue that ICE’s tactics, such as courthouse arrests and targeting unaccompanied minors, erode due process.
An internal ICE document revealed efforts to pursue unaccompanied children and their sponsors for enforcement or criminal prosecution, raising fears of “backdoor family separation.”
Democratic leaders have pushed back, with California Governor Gavin Newsom and Los Angeles Mayor Karen Bass criticizing ICE raids for destabilizing local economies.
“You really could destabilize the economy of Los Angeles,” Bass told MSNBC, highlighting the fear caused by aggressive enforcement.
Meanwhile, Trump has accused Democratic-run “sanctuary cities” of obstructing federal law, threatening to withhold federal funding.
ICE has relied on 287(g) agreements with local law enforcement, particularly in states like Texas, Florida, and Georgia, to bolster its operations.
These agreements, numbering 629 nationwide, have facilitated high-profile raids, such as Florida’s “Operation Tidal Wave,” which led to 1,120 arrests.
However, resource constraints limit broader cooperation, with sheriffs citing insufficient manpower, funding, and detention space.
“It costs the community because [an arrested immigrant] may be a contributing member… to the fabric of the community,” said Jim Thompson of the National Sheriffs’ Association.
As ICE’s budget crisis deepens, the administration faces a delicate balancing act: maintaining its hardline immigration stance while addressing economic and legal concerns.
The proposed $75 billion bill remains a potential lifeline, but its fate in a divided Congress is uncertain.
In the meantime, Trump’s team has signaled continued reliance on executive actions, with recent orders targeting sanctuary cities and expanding military involvement at the border.
The financial and operational challenges underscore the complexity of Trump’s immigration agenda.
While the administration touts its enforcement efforts, the strain on ICE’s budget and the broader economic implications highlight the need for sustainable funding and policy adjustments.
For now, the agency’s cash crisis remains a critical hurdle in fulfilling Trump’s campaign promises.
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