ICE presence eases in Minneapolis after enforcement surge, but immigrant-owned businesses report prolonged revenue losses

Federal drawdown follows months of heightened enforcement

Federal immigration enforcement activity in Minneapolis has diminished from its peak this winter, but the economic disruption reported by small-business owners and city officials has not eased at the same pace. The enforcement surge began in early December 2025 and at its height involved roughly 3,000 federal personnel in Minnesota. Subsequent public statements from federal leaders and Minnesota’s U.S. senators indicated the operation was reduced substantially, though the exact remaining staffing level has been disputed in public accounts.

For many businesses that depend on immigrant customers and workers, the immediate effect of the surge was a sharp drop in foot traffic and staffing. Owners described customers staying home, employees hesitating to come to work, and normal routines in commercial corridors and markets being disrupted for weeks at a time.

Losses concentrated along Lake Street and at cultural markets

City economic development officials estimated Minneapolis businesses have been losing between $10 million and $20 million in sales each week during the operation, based on business survey responses, direct owner conversations, and input from organizations that work with affected firms. In the Lake Street corridor—home to more than 1,000 immigrant-owned businesses—leaders estimated cumulative revenue losses of about $46 million across December 2025 and January 2026, with many storefronts closed on a typical day.

At Midtown Global Market, proprietors reported that nights and weekends have been especially weak since the surge began. Some vendors described scaling back inventory orders dramatically in response to reduced demand, while others warned that continued conditions could make it difficult to keep operating.

Business owners cite lingering fear and disrupted routines

Several owners said the strongest driver of lost sales has been ongoing fear of encounters with federal agents, even among customers and employees with lawful status. Landlords and operators who rent space to multiple small businesses reported that most tenants in some immigrant-focused retail clusters remained closed months after the surge began, with only limited reopening.

Local business groups also noted added operating costs, including steps taken to monitor entrances and reassure customers—expenses that arrive as revenues fall.

Recovery outlook and assistance efforts

Community leaders and business advocates have urged residents to support neighborhood restaurants and shops, warning that even a rapid federal drawdown would not quickly restore normal consumer behavior. City officials and philanthropic and state-linked programs have pointed business owners toward grant and relief options, but organizers have emphasized that many firms measure their remaining runway in weeks rather than months.

• Timeline: surge began in December 2025; reported reductions followed in early 2026.

• Impact: city estimates weekly sales losses of $10–$20 million; Lake Street leaders estimate $46 million in corridor losses across December and January.

• Mechanisms: reduced customer traffic, staffing shortages, shortened hours, and additional safety-related costs.

Business owners and corridor leaders have warned that reopening doors does not automatically bring back customers, and that rebuilding trust and routine may take months.