The Impact of Immigration Policy on Care Worker Shortages and Family Finances

As the U.S. grapples with rising healthcare costs and a diminishing pool of long-term care workers, the implications of immigration policy changes have become increasingly significant. For many American families, especially those caring for elderly loved ones, this evolving landscape is not just a matter of policy; it directly affects their financial stability and ability to access necessary care.

Louis Barajas, a certified financial planner with over 30 years of experience, highlights the personal toll of this situation. He and his brother are currently navigating the complexities of finding a caregiver for their aging parents, who lack long-term care insurance and have limited financial resources. Barajas notes, "It has been the most complicated thing." His experience underscores a larger trend: as the availability of professional caregivers declines, families face escalating challenges in securing essential care for their loved ones.

Immigrant Contributions to the Care Workforce

Immigrants play a crucial role in the U.S. healthcare system, representing a significant portion of the workforce. Current analyses show that foreign-born workers account for approximately 18.8% of the U.S. civilian labor force, with about 3.3 million immigrants employed in healthcare roles, making up roughly 17% of the total healthcare workforce. Notably, immigrants constitute about 30% of direct care workers in long-term care settings such as nursing homes and assisted living facilities. However, as immigration policies tighten—particularly under the Trump Administration—experts warn that these essential workers may become increasingly scarce.

Drishti Pillai, director of immigrant health policy at KFF, explains, "Having reduced immigrant participation in the healthcare workforce... is going to exacerbate existing worker shortages." The recent Supreme Court decision to end temporary protected status for certain immigrant groups further complicates this issue, as it may lead to a decrease in available labor just when demand is surging due to an aging population.

The Financial Burden of Care

The implications of these workforce shortages are troubling, particularly for the financial well-being of families seeking long-term care. The cost of in-home care has risen significantly, with reports indicating that 44 hours of weekly in-home care can cost around $80,080 annually. Additionally, the median hourly rate for non-medical caregiver services saw a 3% increase year-over-year, bringing it to approximately $35 per hour in 2025.

In states like New York and Connecticut, the costs can be even steeper. Care agencies charge an average of $40 per hour in New York and up to $70 per hour in Connecticut. As agencies face rising operational costs, these expenses are inevitably passed down to families, creating a financial strain that many are ill-prepared to handle.

Preparing for Future Care Needs

Given the potential for rising care costs, families must proactively prepare for their long-term care needs. Barajas suggests exploring long-term care insurance options now while also evaluating personal savings plans. He emphasizes the importance of viewing money not merely as a number in a bank account, but as a tool to enhance quality of life and ensure proper care. "Individuals and families need to be thinking about money as a tool to make sure that they live a better life, have a better quality of life," he advises.

Additionally, families should consider their unique situations, including how much they can contribute each month towards care costs. With the potential for increasing demand for care services, planning ahead can alleviate some of the financial burdens that may arise.

Conclusion

The intersection of immigration policy and the care worker shortage is a pressing issue that demands attention from both policymakers and families. As the healthcare landscape continues to evolve, families must stay informed and proactive about their long-term care planning. While the challenges are significant, understanding the financial implications and preparing accordingly can help mitigate some of the stresses associated with caregiving and the costs involved.