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Twin Cities business owners address impact of ICE operations
Small business owners met in St. Paul to address the impact that ICE operations have had on their bottom line.
MINNEAPOLIS (FOX 9) - A day after Border Czar Tom Homan announced immigration enforcement officers would be winding down Operation Metro Surge in Minnesota, Minneapolis officials have released an estimated tab on what the federal deployment has cost city residents.
Operation Metro Surge cost
What we know:
On Friday, Minneapolis officials released "stark numbers" detailing the fiscal impact that Operation Metro Surge has had.
According to the findings, the operation has cost at least $203.1 million in impact, citing losses to the local economy such as small businesses, restaurants, shelters and food shelves.
By the numbers:
The assessment was organized into four of the "most urgently affected sectors," including:
Livelihood: Defined as financial losses to workers and businesses, the city says $47 million has been incurred in lost wages "for people afraid to leave home and go to work," $81 million in restaurant and small business revenue losses and $4.7 million in revenue from hotel cancellations extending through summer.
Shelter: A total of $15.7 million was paid in additional rent assistance needed due to lost household income since Dec. 2025, affecting 35,000 low-income renter households unable to afford rent. Just last week, the Minneapolis City Council approved an additional $1 million to help residents.
Food insecurity: Relating to increases in requests for food assistance, $2.4 million has been spent weekly to support a citywide need for 76,200 people experiencing food insecurity.
Mental Health: Defined as the increased need for mental health support, the city says 8,713 school-age children have been in need of additional services, though a fiscal total is not given. Minneapolis Public Schools recently announced that students have the choice to continue online learning through at least mid-April.
The city also says more than $6 million has been spent on city staff payroll, police overtime and operational expenses in one month alone resulting from the ongoing operation.
Dig deeper:
As drastic as the numbers are, they likely represent the tip of an iceberg that will continue to grow in the months that follow, according to officials.
The estimates come from a voluntary survey, of which only 82 of nearly 1,300 restaurants returned input.
When reached by FOX 9, city officials provided the following clarifications: "Dollar amounts of reported losses vary widely, with many respondents indicating losses of more than $10,000 per week.
"Assuming 750 establishments are experiencing major losses of $20,000 per week, the sector is likely experiencing a minimum loss of $15 million per week. Carrying similar assumptions across responses from other types of establishments — grocery, general retail and service, entertainment and small vendors — total estimated losses per week to small businesses in the city are estimated to be at least $20.25 million.
"Assuming four weeks to a month, January 2026 revenue losses for small, consumer-facing businesses in Minneapolis could be as high as $81 million."
What they're saying:
"The damage caused by this operation has been staggering. We knew from the very beginning that this was not about safety. It was not even about immigration. This was about stoking fear and ultimately chaos in the communities that we love," Minneapolis Mayor Jacob Frey said on Friday. "The damage caused by Operation Metro Surge doesn’t disappear just because the operation is ending."
"This preliminary assessment is by no means exhaustive, and these totals are almost certainly undercounts. The impact we are seeing as a city will be felt for decades, even generations to come," said Director Rachel Sayre, City of Minneapolis Emergency Management. "We need significant funding assistance to meet the urgent needs of our community."
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St. Paul leaders address ICE small business impact
St. Paul Mayor Her, along with leaders from the Minnesota Department of Employment and Economic Development, spoke about how ICE operations have impacted the local economy. They also celebrated the designation of February as "Shop Local, Stand Together Month."
St. Paul’s cost
Big picture view:
Though a comprehensive tally has not yet been completed, St. Paul Mayor Kaohly Her’s office released the following information when asked by FOX 9:
Data from the Latino Economic Development Center, based on a business impact survey of 92 businesses, shows more than half of respondents reported a critical impact on revenue, and nearly two-thirds reported revenue losses exceeding 50% or a complete loss of revenue. At the time of the survey, 98% of businesses reported having no external support.
The current estimated monthly revenue loss sits around $3.4 million.
"Using our eyes, ears, and common sense, it's clear that Operation Metro Surge is having a detrimental impact on our small and immigrant-owned businesses," Her said in a statement. "Businesses are closed or operating at severely lower capacity across the East Side, the West Side, the Midway, and the North End in the City of St. Paul."
What's next:
Before the operation ever began, Minneapolis was already facing a budget deficit.
A forecast from Minnesota's budget office is projecting a nearly $3 billion shortfall for the upcoming biennium, or budget cycle.