For decades, Americans were told that the country needed foreign labor to do the jobs “Americans won’t do.” In practice, that argument often translated into a defense of illegal immigration. But after President Donald Trump closed the southern border and deported hundreds of thousands of illegal immigrants, new data suggest that many of those jobs are now being filled by American workers — at least in Texas.
A new survey by the Federal Reserve Bank of Dallas shows that companies in the Lone Star State are cutting back on their use of foreign labor. Conducted between February 10 and 18, the survey found a 20 percent decrease in the use of “workers from a different country.” That figure represents a sharp increase from just 2 percent in February 2024.
Over the past year, only 13 percent of companies reported increasing their reliance on foreign labor, down from 41 percent a year earlier. Still, 68 percent of businesses said their reliance had not changed, indicating that significant dependence remains.
Much of that continued reliance is attributed to loopholes that allow construction firms to employ illegal immigrants with limited risk. These include the use of subcontractors and staffing agencies that claim — often incorrectly — that their workers are legally authorized to work.
On the other side of the issue, many companies continue to pressure the federal government to provide access to cheap foreign labor. Critics argue this allows employers to avoid paying higher wages, offering better benefits, or investing in more efficient technology. In Texas, some homebuilders have warned that Trump’s crackdown on illegal immigration — including worksite raids — could conflict with his goal of making homeownership more affordable.
They have also cautioned that aggressive enforcement could threaten Republican gains among Hispanic voters, suggesting political consequences if labor costs rise.
But advocates of enforcement say the real solution is targeting employers who hire illegal immigrants. Cracking down on that practice, they argue, removes one of the strongest incentives for illegal immigration.
The political implications are already visible in parts of Texas. In counties like Hidalgo, where Republicans have made unexpected gains, the link between employment and enforcement has become part of the debate: more American workers on job sites means more stable wages and stronger local economies.
Supporters of Trump’s policy contend that the trend proves a long-standing claim false — that Americans will work these jobs when they are available, legal, and fairly paid. They argue that fewer foreign workers means more opportunities for U.S. citizens, a dynamic they believe will help keep Texas and other states firmly in Republican hands.
