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The Smart Money real estate investment for TODAY

For 13 years, excessively low-interest rates fueled an unprecedented boom – and…
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For 13 years, excessively low-interest rates fueled an unprecedented boom – and bubble – in the residential real estate markets of major urban centers. Canada’s housing boom started even earlier.

Now the party has come to an end. Recent, grim headlines paint a dire picture.

Canada housing crash: Fast-rising borrowing costs predicted to deepen slumpReal estate: Canada’s housing crisis is just beginning, economist says

The timing of this crash in residential real estate could not be worse. Equity markets have collapsed. So have bond markets. Rising interest rates threaten to plunge economies into a deep recession.

In times of such financial stress and uncertainty, investors typically look to real estate and/or gold for security. But even gold is well off of its previous highs.

Can savvy investors still find shelter in real estate? Yes. Introducing CIBT Education Group Inc. (TSXV:MBA / OTC:MBAIF).

For many readers of The Market Herald, this is already a familiar name. We most recently covered this company in a full-length feature article.

CIBT Education offers small-cap GROWTH and STABILITY

We highlighted how, as an investment, CIBT has outperformed most other small caps over both longer and shorter terms. We also connected the dots and how/why the company looks very likely to continue to be a strong performer going forward.

The Market Herald had the opportunity to speak with CIBT’s President, CEO and Chairman, Toby Chu. Among the insights he offered in that previous conversation:

When CEO Toby Chu was talking about his recent interactions with investors (in investor road shows and industry events), he remarked to The Market Herald how he was seeing an increasing interest from institutional investors.

Why is Smart Money sniffing around CIBT Education Group with increasing interest?

The company has generated consistent, long-term growth in its operations. Its future growth prospects are very strong – and look like money in the bank.

However, is CIBT’s biggest attraction to Smart Money due to what’s going on externally? More on that later.

CIBT’s unique, recession-proof real estate niche

Most (all?) other real estate sub-sectors are under enormous strain from soaring interest rates. CIBT is forecasting continued robust growth.

What separates this company from other real estate investments? CIBT Education Group occupies a unique real estate niche. It’s all about “education.”

CIBT’s market is student housing. This is an education services company, operator of Sprott Shaw College, Sprott Shaw Language College, and Vancouver International College Career Campus. CIBT subsidiaries provide educational programs in healthcare, eCommerce, trades, technology & language to nearly 10,000 domestic and international students annually. This is complemented by rental housing and a full array of related student housing services.

A fully integrated business model. Deep experience in education.

CIBT’s student housing specialty is a nearly recession-proof business. Education is one of the last expenditures to be reduced in any economic downturn.

Even better (for CIBT investors) are the demographics of CIBT’s student housing population. Roughly 75% of these students are international students.

International students generally have more-affluent parents. Parents are even less likely to make cuts in education spending on their children, especially when they are studying abroad – no matter how serious economic conditions get.

CIBT’s market focus is the Canadian student housing market, in general, and the Metro Vancouver market, in particular.

Canada has become the preferred destination for international students. And Metro Vancouver hosts a disproportionately large share of Canada’s international student population based on province size.

Vancouver student housing alone is a very robust CAD$1.6 billion market. CIBT Education is the largest provider of off-campus housing in this market.

Why CIBT offers the best investment shelter in “shelter”

Student housing is generally a bellwether market. Housing international students are especially recession-proof. And the Canadian student housing market is the strongest of all.

CIBT’s market positioning could not be better. The company’s financial strength is reflected in its corporate results.

1 EBITDA and Adjusted EBITDA are non-IFRS Financial Measures as further described at the end of this article. Information on non-IFRS Financial Measures is incorporated by reference to the company’s Management Discussion and Analysis (“MD&A) for the applicable fiscal years ended August 31, as presented in the above table, located under CIBT’s profile on SEDAR (www.sedar.com). Reconciliation of EBITDA and Adjusted EBITDA to the most comparable IFRS measure is generally located under the title “Non-IFRS Financial Measures” near the end of each respective MD&A.

CIBT Education Group’s annual audited financial statements for the year ended August 31, 2022 (fiscal 2022) are available under CIBT’s profile on SEDAR (www.sedar.com).

All GEC® rental projects performed well despite the pandemic, reflecting that the company’s student rental and education businesses are counter-cyclical to the economic cycles and complementary to each other. Rental revenues increased by 88% in fiscal 2022 compared to fiscal 2021.

CEO Toby Chu addressed an issue reflected in the fiscal 2022 results when speaking with The Market Herald.

“One of our development projects in Richmond, British Columbia, where a GEC® limited partnership paid a deposit for the future purchase of two towers from a local developer, encountered an unfortunate setback. According to the developer’s filed court documents in the Companies’ Creditors Arrangement Act (the “CCAA”), the developer’s lender ceased funding in March 2020 which led to the developer filing for creditor protection under the CCAA in April 2022.

Based on facts and circumstances and the best information available on August 31, 2022, certain balances associated with these deposits and related assets were impaired, resulting in a non-cash charge of $66.94 million, which impacted net income (loss). Without this non-cash charge, net income for fiscal 2022 was $11.17 million 1.

At the end of each reporting period, the company will assess if any portion of this impairment may be reversed. There is no debt owed by GECH associated with this project. We are pursuing legal action against the lender for damages and other relief.”

Many businesses wilted due to the difficult economic conditions during the Covid-19 pandemic. Some were literally driven out of business.

CIBT derives the bulk of its revenues from its education business and 25% from its (occupied) rental housing units via its real estate subsidiary Global Education City Holdings Inc. (GECH). Despite the impact of the pandemic, which was most prominent in the first six months of fiscal 2022, revenues increased by 20%.

As the economy re-emerges from Covid, many businesses are struggling to equal their pre-pandemic performance level. Not CIBT.

Investors will note the company’s exceptional financial performance in 2018. CEO Toby Chu explained that CIBT’s revenues do not grow in a straight line.

Adding incremental rental units requires bringing new student housing facilities online. Each new facility produces a strong bump in revenues. The company added significant projects in 2018, generating robust gains on both the top and bottom lines.

CIBT Education is preparing to bring its next student housing facility online at the beginning of 2023: GEC King Edward.

This will add 190 additional beds (units) and 46,408 Gross Buildable square feet to CIBT’s inventory of student housing. Prospects for more top-line and bottom-line growth in 2023.

CIBT Education offers counter-cyclical strength with demonstrated stability

With its real estate revenues coming from rental housing, CIBT has lower exposure than conventional developers because the future rental rate adjustments to the renters will reflect all the increased costs. Combine this with the recession-proof nature of this business, and CIBT Education offers investors a countercyclical bellwether in real estate.

Investment icon Warren Buffett once famously remarked, “It’s only when the tide goes out that you learn who’s been swimming naked.”

In Canada’s once unstoppable real estate juggernaut, the tide is now going out – quickly. Many real estate investments are about to be exposed (as overvalued), especially those connected to the residential real estate bubble.

In comparison, CIBT remains finely attired to a foundation of financial stability decorated with strong growth potential.

The company’s $500+ million property portfolio is comprised of 7 off-campus student housing facilities currently in operation, with 8 more under development. The best is literally yet to come.

And the Smart Money is taking notice.

CEO Chu elaborated on what was being discussed as increasing numbers of institutional investors have been approaching him at investor events.

“During my recent roadshow visiting overseas institutional and accredited investors, the stock markets were impacted by geo-political issues, inflations, volatilities and depressed stock prices, forcing smart investors to look at other investment opportunities. I was able to introduce a niche market in the real estate sector that will provide stable cash flow income, long-term capital gain, and “real” estate that is tangible. Several institutional investors have identified Canada’s student housing as their next biggest opportunity.”

The basic investment proposition here is more than enough to generate interest in CIBT among institutional investors. But that’s only the beginning of the company’s attraction to the Smart Money.

The Smart Money real estate play for today

Readers of The Market Herald have already seen the 10-year chart for CIBT Education Group. It’s a pretty picture.

The long-term charts of most public companies look like they have fallen off a cliff, either during the pandemic, afterward, or both. CIBT is trading below the $40 million market cap as of November 28, 2022, a small-cap company with the chart of a blue-chip stock.

But should this chart look much better?

Consider this. Over those last 10 years, CIBT Education Group was competing for investor dollars with all the high-flying stocks in real estate. As good as CIBT has performed, it would have looked second-best versus all of the other (now) excessively valued real estate stocks.

As the tide goes out in real estate, CIBT stands virtually alone.

CIBT produced strong long-term returns over the past decade in heavy competition for investor dollars. Now that competition for investor dollars is evaporating.

Instead of being “a second-best real estate investment,” the company is now “the counter-cyclical real estate bellwether” as a large bubble in other real estate markets unwinds.

A Smart Money real estate investment.

But that still doesn’t fully present the strength of the investment fundamentals here.

Huge market, huge growth potential, huge barriers to entry

CIBT Education Group reported annual revenues for the year ended August 31, 2022 (fiscal 2022) of CAD$73.2 million. The company is the largest off-campus student housing provider in the CAD$1.6 billion Vancouver student housing market.

As noted in our previous feature, CIBT’s largest competitor in this market is the federal government. And the federal government wants to have as little market share here as possible – to minimize the tax dollars required for these capital investments.

As far as private sector competitors go, the barriers to entry into student housing were large. Today, they are virtually prohibitive.

Real estate prices remain near top dollar. Yet the explosion in interest rates has sent the costs of financing these capital investments into orbit.

CIBT Education Group has rental revenues for fiscal 2022 of CAD$18.55 million in a $1.6 billion market and near-zero competition as it expands its market share. Enough to make institutional investors salivate.

As investors contemplate the growth multiples here, don’t forget CIBT’s current market cap: below CAD$40 million.

Add the future growth potential, the barriers to entry that lock in this growth potential, and the counter-cyclical strength to prosper during a major downturn in real estate. This is a company that should be trading at a higher premium than its current state.

It is the sort of investment setup that institutional investors dream about: huge growth potential, minimal competition, and a fabulous entry point.

Institutional investors are also gravitating towards ESG-friendly stocks. CIBT Education puts the “G” in ESG. The company’s corporate accolades are simply too numerous to list.

The Smart Money real estate investment for 2022.

For retail investors worried they might forget about this “smart money” investment opportunity, CIBT Education Group makes it easy for investors. Just remember the company’s symbol: “MBA.”

Is your portfolio ready to graduate to this Smart Money real estate stock?

DISCLOSURE: This is a paid article by The Market Herald. Financial results included in the article are deemed to be from CIBT Education Group Inc.

The post The Smart Money real estate investment for TODAY appeared first on The Market Herald.

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President Biden Delivers The “Darkest, Most Un-American Speech Given By A President”

President Biden Delivers The "Darkest, Most Un-American Speech Given By A President"

Having successfully raged, ranted, lied, and yelled through…

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President Biden Delivers The "Darkest, Most Un-American Speech Given By A President"

Having successfully raged, ranted, lied, and yelled through the State of The Union, President Biden can go back to his crypt now.

Whatever 'they' gave Biden, every American man, woman, and the other should be allowed to take it - though it seems the cocktail brings out 'dark Brandon'?

Tl;dw: Biden's Speech tonight ...

  • Fund Ukraine.

  • Trump is threat to democracy and America itself.

  • Abortion is good.

  • American Economy is stronger than ever.

  • Inflation wasn't Biden's fault.

  • Illegals are Americans too.

  • Republicans are responsible for the border crisis.

  • Trump is bad.

  • Biden stands with trans-children.

  • J6 was the worst insurrection since the Civil War.

(h/t @TCDMS99)

Tucker Carlson's response sums it all up perfectly:

"that was possibly the darkest, most un-American speech given by an American president. It wasn't a speech, it was a rant..."

Carlson continued: "The true measure of a nation's greatness lies within its capacity to control borders, yet Bid refuses to do it."

"In a fair election, Joe Biden cannot win"

And concluded:

“There was not a meaningful word for the entire duration about the things that actually matter to people who live here.”

Victor Davis Hanson added some excellent color, but this was probably the best line on Biden:

"he doesn't care... he lives in an alternative reality."

*  *  *

Watch SOTU Live here...

*   *   *

Mises' Connor O'Keeffe, warns: "Be on the Lookout for These Lies in Biden's State of the Union Address." 

On Thursday evening, President Joe Biden is set to give his third State of the Union address. The political press has been buzzing with speculation over what the president will say. That speculation, however, is focused more on how Biden will perform, and which issues he will prioritize. Much of the speech is expected to be familiar.

The story Biden will tell about what he has done as president and where the country finds itself as a result will be the same dishonest story he's been telling since at least the summer.

He'll cite government statistics to say the economy is growing, unemployment is low, and inflation is down.

Something that has been frustrating Biden, his team, and his allies in the media is that the American people do not feel as economically well off as the official data says they are. Despite what the White House and establishment-friendly journalists say, the problem lies with the data, not the American people's ability to perceive their own well-being.

As I wrote back in January, the reason for the discrepancy is the lack of distinction made between private economic activity and government spending in the most frequently cited economic indicators. There is an important difference between the two:

  • Government, unlike any other entity in the economy, can simply take money and resources from others to spend on things and hire people. Whether or not the spending brings people value is irrelevant

  • It's the private sector that's responsible for producing goods and services that actually meet people's needs and wants. So, the private components of the economy have the most significant effect on people's economic well-being.

Recently, government spending and hiring has accounted for a larger than normal share of both economic activity and employment. This means the government is propping up these traditional measures, making the economy appear better than it actually is. Also, many of the jobs Biden and his allies take credit for creating will quickly go away once it becomes clear that consumers don't actually want whatever the government encouraged these companies to produce.

On top of all that, the administration is dealing with the consequences of their chosen inflation rhetoric.

Since its peak in the summer of 2022, the president's team has talked about inflation "coming back down," which can easily give the impression that it's prices that will eventually come back down.

But that's not what that phrase means. It would be more honest to say that price increases are slowing down.

Americans are finally waking up to the fact that the cost of living will not return to prepandemic levels, and they're not happy about it.

The president has made some clumsy attempts at damage control, such as a Super Bowl Sunday video attacking food companies for "shrinkflation"—selling smaller portions at the same price instead of simply raising prices.

In his speech Thursday, Biden is expected to play up his desire to crack down on the "corporate greed" he's blaming for high prices.

In the name of "bringing down costs for Americans," the administration wants to implement targeted price ceilings - something anyone who has taken even a single economics class could tell you does more harm than good. Biden would never place the blame for the dramatic price increases we've experienced during his term where it actually belongs—on all the government spending that he and President Donald Trump oversaw during the pandemic, funded by the creation of $6 trillion out of thin air - because that kind of spending is precisely what he hopes to kick back up in a second term.

If reelected, the president wants to "revive" parts of his so-called Build Back Better agenda, which he tried and failed to pass in his first year. That would bring a significant expansion of domestic spending. And Biden remains committed to the idea that Americans must be forced to continue funding the war in Ukraine. That's another topic Biden is expected to highlight in the State of the Union, likely accompanied by the lie that Ukraine spending is good for the American economy. It isn't.

It's not possible to predict all the ways President Biden will exaggerate, mislead, and outright lie in his speech on Thursday. But we can be sure of two things. The "state of the Union" is not as strong as Biden will say it is. And his policy ambitions risk making it much worse.

*  *  *

The American people will be tuning in on their smartphones, laptops, and televisions on Thursday evening to see if 'sloppy joe' 81-year-old President Joe Biden can coherently put together more than two sentences (even with a teleprompter) as he gives his third State of the Union in front of a divided Congress. 

President Biden will speak on various topics to convince voters why he shouldn't be sent to a retirement home.

According to CNN sources, here are some of the topics Biden will discuss tonight:

  • Economic issues: Biden and his team have been drafting a speech heavy on economic populism, aides said, with calls for higher taxes on corporations and the wealthy – an attempt to draw a sharp contrast with Republicans and their likely presidential nominee, Donald Trump.

  • Health care expenses: Biden will also push for lowering health care costs and discuss his efforts to go after drug manufacturers to lower the cost of prescription medications — all issues his advisers believe can help buoy what have been sagging economic approval ratings.

  • Israel's war with Hamas: Also looming large over Biden's primetime address is the ongoing Israel-Hamas war, which has consumed much of the president's time and attention over the past few months. The president's top national security advisers have been working around the clock to try to finalize a ceasefire-hostages release deal by Ramadan, the Muslim holy month that begins next week.

  • An argument for reelection: Aides view Thursday's speech as a critical opportunity for the president to tout his accomplishments in office and lay out his plans for another four years in the nation's top job. Even though viewership has declined over the years, the yearly speech reliably draws tens of millions of households.

Sources provided more color on Biden's SOTU address: 

The speech is expected to be heavy on economic populism. The president will talk about raising taxes on corporations and the wealthy. He'll highlight efforts to cut costs for the American people, including pushing Congress to help make prescription drugs more affordable.

Biden will talk about the need to preserve democracy and freedom, a cornerstone of his re-election bid. That includes protecting and bolstering reproductive rights, an issue Democrats believe will energize voters in November. Biden is also expected to promote his unity agenda, a key feature of each of his addresses to Congress while in office.

Biden is also expected to give remarks on border security while the invasion of illegals has become one of the most heated topics among American voters. A majority of voters are frustrated with radical progressives in the White House facilitating the illegal migrant invasion. 

It is probable that the president will attribute the failure of the Senate border bill to the Republicans, a claim many voters view as unfounded. This is because the White House has the option to issue an executive order to restore border security, yet opts not to do so

Maybe this is why? 

While Biden addresses the nation, the Biden administration will be armed with a social media team to pump propaganda to at least 100 million Americans. 

"The White House hosted about 70 creators, digital publishers, and influencers across three separate events" on Wednesday and Thursday, a White House official told CNN. 

Not a very capable social media team... 

The administration's move to ramp up social media operations comes as users on X are mostly free from government censorship with Elon Musk at the helm. This infuriates Democrats, who can no longer censor their political enemies on X. 

Meanwhile, Democratic lawmakers tell Axios that the president's SOTU performance will be critical as he tries to dispel voter concerns about his elderly age. The address reached as many as 27 million people in 2023. 

"We are all nervous," said one House Democrat, citing concerns about the president's "ability to speak without blowing things."

The SOTU address comes as Biden's polling data is in the dumps

BetOnline has created several money-making opportunities for gamblers tonight, such as betting on what word Biden mentions the most. 

As well as...

We will update you when Tucker Carlson's live feed of SOTU is published. 

Tyler Durden Fri, 03/08/2024 - 07:44

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What is intersectionality and why does it make feminism more effective?

The social categories that we belong to shape our understanding of the world in different ways.

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Mary Long/Shutterstock

The way we talk about society and the people and structures in it is constantly changing. One term you may come across this International Women’s Day is “intersectionality”. And specifically, the concept of “intersectional feminism”.

Intersectionality refers to the fact that everyone is part of multiple social categories. These include gender, social class, sexuality, (dis)ability and racialisation (when people are divided into “racial” groups often based on skin colour or features).

These categories are not independent of each other, they intersect. This looks different for every person. For example, a black woman without a disability will have a different experience of society than a white woman without a disability – or a black woman with a disability.

An intersectional approach makes social policy more inclusive and just. Its value was evident in research during the pandemic, when it became clear that women from various groups, those who worked in caring jobs and who lived in crowded circumstances were much more likely to die from COVID.

A long-fought battle

American civil rights leader and scholar Kimberlé Crenshaw first introduced the term intersectionality in a 1989 paper. She argued that focusing on a single form of oppression (such as gender or race) perpetuated discrimination against black women, who are simultaneously subjected to both racism and sexism.

Crenshaw gave a name to ways of thinking and theorising that black and Latina feminists, as well as working-class and lesbian feminists, had argued for decades. The Combahee River Collective of black lesbians was groundbreaking in this work.

They called for strategic alliances with black men to oppose racism, white women to oppose sexism and lesbians to oppose homophobia. This was an example of how an intersectional understanding of identity and social power relations can create more opportunities for action.

These ideas have, through political struggle, come to be accepted in feminist thinking and women’s studies scholarship. An increasing number of feminists now use the term “intersectional feminism”.

The term has moved from academia to feminist activist and social justice circles and beyond in recent years. Its popularity and widespread use means it is subjected to much scrutiny and debate about how and when it should be employed. For example, some argue that it should always include attention to racism and racialisation.

Recognising more issues makes feminism more effective

In writing about intersectionality, Crenshaw argued that singular approaches to social categories made black women’s oppression invisible. Many black feminists have pointed out that white feminists frequently overlook how racial categories shape different women’s experiences.

One example is hair discrimination. It is only in the 2020s that many organisations in South Africa, the UK and US have recognised that it is discriminatory to regulate black women’s hairstyles in ways that render their natural hair unacceptable.

This is an intersectional approach. White women and most black men do not face the same discrimination and pressures to straighten their hair.

View from behind of a young, black woman speaking to female colleagues in an office
Intersectionality can lead to more inclusive organisations, activism and social movements. Rawpixel.com/Shutterstock

“Abortion on demand” in the 1970s and 1980s in the UK and USA took no account of the fact that black women in these and many other countries needed to campaign against being given abortions against their will. The fight for reproductive justice does not look the same for all women.

Similarly, the experiences of working-class women have frequently been rendered invisible in white, middle class feminist campaigns and writings. Intersectionality means that these issues are recognised and fought for in an inclusive and more powerful way.

In the 35 years since Crenshaw coined the term, feminist scholars have analysed how women are positioned in society, for example, as black, working-class, lesbian or colonial subjects. Intersectionality reminds us that fruitful discussions about discrimination and justice must acknowledge how these different categories affect each other and their associated power relations.

This does not mean that research and policy cannot focus predominantly on one social category, such as race, gender or social class. But it does mean that we cannot, and should not, understand those categories in isolation of each other.

Ann Phoenix does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

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Biden defends immigration policy during State of the Union, blaming Republicans in Congress for refusing to act

A rising number of Americans say that immigration is the country’s biggest problem. Biden called for Congress to pass a bipartisan border and immigration…

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President Joe Biden delivers his State of the Union address on March 7, 2024. Alex Brandon-Pool/Getty Images

President Joe Biden delivered the annual State of the Union address on March 7, 2024, casting a wide net on a range of major themes – the economy, abortion rights, threats to democracy, the wars in Gaza and Ukraine – that are preoccupying many Americans heading into the November presidential election.

The president also addressed massive increases in immigration at the southern border and the political battle in Congress over how to manage it. “We can fight about the border, or we can fix it. I’m ready to fix it,” Biden said.

But while Biden stressed that he wants to overcome political division and take action on immigration and the border, he cautioned that he will not “demonize immigrants,” as he said his predecessor, former President Donald Trump, does.

“I will not separate families. I will not ban people from America because of their faith,” Biden said.

Biden’s speech comes as a rising number of American voters say that immigration is the country’s biggest problem.

Immigration law scholar Jean Lantz Reisz answers four questions about why immigration has become a top issue for Americans, and the limits of presidential power when it comes to immigration and border security.

President Joe Biden stands surrounded by people in formal clothing and smiles. One man holds a cell phone camera close up to his face.
President Joe Biden arrives to deliver the State of the Union address at the US Capitol on March 7, 2024. Chip Somodevilla/Getty Images

1. What is driving all of the attention and concern immigration is receiving?

The unprecedented number of undocumented migrants crossing the U.S.-Mexico border right now has drawn national concern to the U.S. immigration system and the president’s enforcement policies at the border.

Border security has always been part of the immigration debate about how to stop unlawful immigration.

But in this election, the immigration debate is also fueled by images of large groups of migrants crossing a river and crawling through barbed wire fences. There is also news of standoffs between Texas law enforcement and U.S. Border Patrol agents and cities like New York and Chicago struggling to handle the influx of arriving migrants.

Republicans blame Biden for not taking action on what they say is an “invasion” at the U.S. border. Democrats blame Republicans for refusing to pass laws that would give the president the power to stop the flow of migration at the border.

2. Are Biden’s immigration policies effective?

Confusion about immigration laws may be the reason people believe that Biden is not implementing effective policies at the border.

The U.S. passed a law in 1952 that gives any person arriving at the border or inside the U.S. the right to apply for asylum and the right to legally stay in the country, even if that person crossed the border illegally. That law has not changed.

Courts struck down many of former President Donald Trump’s policies that tried to limit immigration. Trump was able to lawfully deport migrants at the border without processing their asylum claims during the COVID-19 pandemic under a public health law called Title 42. Biden continued that policy until the legal justification for Title 42 – meaning the public health emergency – ended in 2023.

Republicans falsely attribute the surge in undocumented migration to the U.S. over the past three years to something they call Biden’s “open border” policy. There is no such policy.

Multiple factors are driving increased migration to the U.S.

More people are leaving dangerous or difficult situations in their countries, and some people have waited to migrate until after the COVID-19 pandemic ended. People who smuggle migrants are also spreading misinformation to migrants about the ability to enter and stay in the U.S.

Joe Biden wears a black blazer and a black hat as he stands next to a bald white man wearing a green uniform and a white truck that says 'Border Patrol' in green
President Joe Biden walks with Jason Owens, the chief of the U.S. Border Patrol, as he visits the U.S.-Mexico border in Brownsville, Texas, on Feb. 29, 2024. Jim Watson/AFP via Getty Images

3. How much power does the president have over immigration?

The president’s power regarding immigration is limited to enforcing existing immigration laws. But the president has broad authority over how to enforce those laws.

For example, the president can place every single immigrant unlawfully present in the U.S. in deportation proceedings. Because there is not enough money or employees at federal agencies and courts to accomplish that, the president will usually choose to prioritize the deportation of certain immigrants, like those who have committed serious and violent crimes in the U.S.

The federal agency Immigration and Customs Enforcement deported more than 142,000 immigrants from October 2022 through September 2023, double the number of people it deported the previous fiscal year.

But under current law, the president does not have the power to summarily expel migrants who say they are afraid of returning to their country. The law requires the president to process their claims for asylum.

Biden’s ability to enforce immigration law also depends on a budget approved by Congress. Without congressional approval, the president cannot spend money to build a wall, increase immigration detention facilities’ capacity or send more Border Patrol agents to process undocumented migrants entering the country.

A large group of people are seen sitting and standing along a tall brown fence in an empty area of brown dirt.
Migrants arrive at the border between El Paso, Texas, and Ciudad Juarez, Mexico, to surrender to American Border Patrol agents on March 5, 2024. Lokman Vural Elibol/Anadolu via Getty Images

4. How could Biden address the current immigration problems in this country?

In early 2024, Republicans in the Senate refused to pass a bill – developed by a bipartisan team of legislators – that would have made it harder to get asylum and given Biden the power to stop taking asylum applications when migrant crossings reached a certain number.

During his speech, Biden called this bill the “toughest set of border security reforms we’ve ever seen in this country.”

That bill would have also provided more federal money to help immigration agencies and courts quickly review more asylum claims and expedite the asylum process, which remains backlogged with millions of cases, Biden said. Biden said the bipartisan deal would also hire 1,500 more border security agents and officers, as well as 4,300 more asylum officers.

Removing this backlog in immigration courts could mean that some undocumented migrants, who now might wait six to eight years for an asylum hearing, would instead only wait six weeks, Biden said. That means it would be “highly unlikely” migrants would pay a large amount to be smuggled into the country, only to be “kicked out quickly,” Biden said.

“My Republican friends, you owe it to the American people to get this bill done. We need to act,” Biden said.

Biden’s remarks calling for Congress to pass the bill drew jeers from some in the audience. Biden quickly responded, saying that it was a bipartisan effort: “What are you against?” he asked.

Biden is now considering using section 212(f) of the Immigration and Nationality Act to get more control over immigration. This sweeping law allows the president to temporarily suspend or restrict the entry of all foreigners if their arrival is detrimental to the U.S.

This obscure law gained attention when Trump used it in January 2017 to implement a travel ban on foreigners from mainly Muslim countries. The Supreme Court upheld the travel ban in 2018.

Trump again also signed an executive order in April 2020 that blocked foreigners who were seeking lawful permanent residency from entering the country for 60 days, citing this same section of the Immigration and Nationality Act.

Biden did not mention any possible use of section 212(f) during his State of the Union speech. If the president uses this, it would likely be challenged in court. It is not clear that 212(f) would apply to people already in the U.S., and it conflicts with existing asylum law that gives people within the U.S. the right to seek asylum.

Jean Lantz Reisz does not work for, consult, own shares in or receive funding from any company or organization that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

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