Trump Officials Cancel Biden Protections For Venezuluan Refugees, Mull Deportation: The Economic Impact

Amid actions by President Donald Trump‘s administration to carry out mass deportation of migrants who illegally entered the United States, officials also appear poised to change refugee policy for immigrants living in the U.S. legally.

What Happened: The New York Times reported Wednesday that Secretary of Homeland Security Kristi Noem revoked an extension of deportation protections for over 600,000 Venezuelans living in the U.S. The migrants, seeking protection from Nicolás Maduro‘s regime, reached the U.S. legally through work permits.

Joe Biden, Trump’s predecessor, previously extended deportation protection for the migrants.

The Venezuelans received Temporary Protective Status in either 2021 or 2023. Those who received their status in the former year will maintain their protection through September, while the migrants who received status in the latter year will have them until at least April.

Trump initially granted Venezuelans legal status near the end of his first term in 2021, Politico reported.

Why it Matters: Venezuela has suffered economic crises and political instability in the past decade.

Over 900,000 Venezuelans were citizens of the U.S. in 2023, according to the U.S. Census. Miami, Florida is home to a large Venezuelan population of both citizens and migrants on work permits. Orlando and Houston, Texas are also large population centers for Venezuelans.

If Trump were to carry out the deportation of the workers, it could impact the economy of Miami negatively given businesses’ dependence on foreign workers.

Economists say the deportation of immigrants could be a cause of stagflation, which occurs with a decrease in the nation’s supply. The result is inflationary and could lead to a recession in the broader economy.

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