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The Trump administration’s mass deportation campaign led to a 5% quarterly drop in construction jobs in the Rio Grande Valley during the third quarter of last year — the highest construction jobs decline on record for the region — while the cost of housing and services across the state is rising because of the shrinking workforce.
That’s according to a newly released report, “End the Ice Tax,” from America’s Voice, a nonprofit national organization that advocates for the enactment of changes to government policy that “secure freedom and opportunity for immigrants in America.”
The report found that nearly one-fifth of ICE arrests in Texas took place in the Valley, where ICE has arrested more than 9,100 people during the surge. In Laredo, monthly arrests of workers and residents jumped from around half a dozen on average to more than 800 due to the mass deportation campaign, the report said.
“Business is down significantly,” South Texas Builders Association Board President Ronnie Cavazos is quoted as saying. “If we continue on this trajectory, we will see a lot of businesses fail.”
Among U.S. states, California, Florida, Nevada, New Jersey and New York rely most heavily on immigrants workers and are experiencing proportionate economic impacts, including higher costs for things like groceries, daycare and home construction, according to the report, which noted that regions of Texas are experiencing the same types of effects.
America’s Voice stated that the government’s “mass deportation agenda is contributing to an increase in price and depressing economic activity.”
“That decision isn’t theoretical,” the organization said. “It shows up at every kitchen table in the country, including the tables of families who’ve never thought twice about immigration. We call it the ICE tax. It’s the additional cost you pay when your government picks mass deportation over your wallet — higher prices at checkout, jobs that stall out because workers are gone, and Main Street businesses sitting quiet after a raid comes through.”
The report analyzed federal price data and found that, over the 12 months ending June 2026, core prices excluding food and energy rose 2.6% nationally, while goods and services that depend heavily on immigrant labor far surpassed that: the price of lettuce rising 32.1%, canned fruit 7.9%, fresh citrus 6.3%, apples 7.1%, and whole milk 9%.
Also, the cost of home healthcare rose 10.7% and landscaping 10.8%, according to the report.
“Construction is slowing, and new homes cost more, exactly where immigrant labor is most scarce,” the report said. “The same analysis finds that the states and regions most reliant on immigrant construction workers are seeing employment declines, falling housing permits, and rising new-home prices, while less-reliant regions see growth.”
Benigno Melendez, president of the South Texas Builders Association’s Government Affairs Committee, said this fight has been going on for more than a year-and-a-half since the start of Trump’s second term.
“It’s been tough economically and, how can I put it, humanity-wise,” he said. “So, on both sides, it’s affecting us. It’s tough moments for us right now.”
When the building industry suffers, it has a ripple effect on the economy, said Melendez, owner of BM3 Construction LLC, headquartered in Weslaco.
“We have to keep in mind that we go out and buy stuff in the stores,” he said. “In the lumber stores, we go to Stripes, we buy gas, we buy food in the restaurants, we go to Walmart — you know what I mean? Eventually, everyone is going to feel the effect, the negative effect.”
Melendez said granting work permits to workers instead of arresting them would provide an immediate solution, though he doesn’t see anything changing, at least not until the November mid-term elections.
In response to the familiar argument that builders wouldn’t have to depend on undocumented workers if they paid enough to attract American-born or legal residents, Melendez said it’s not true. Construction jobs already start at $15 an hour, roughly what local government jobs pay, though not many citizens or documented workers are lining up to take them, for the simple reason that it’s hard work, he said.
“If you have the opportunity to work in something better, in better conditions, you’re going to take it, and I don’t blame you,” Melendez said. “But we need someone to do it. We already have those people that are willing to sacrifice. Let them work.”
Again, he reiterates the moral aspects of mass deportation rather than just the economic consequences.
“It’s also separating a lot of families,” Melendez said. “It’s not only about the money. I know that’s all we hear on the news: money, money, money. But, more than that, more important than that, what about the dignity of the community?”