Minneapolis, January 22, 2026

Minneapolis businesses are facing severe challenges due to a surge in federal immigration enforcement known as ‘Operation Metro Surge’. This initiative has led to significant declines in sales, especially for immigrant-run establishments, and has instilled fear in communities, resulting in reduced foot traffic and temporary closures. Local leaders advocate for legal action against the federal government while emphasizing the importance of immigrant contributions to the state’s economy. Community organizing and protests highlight the broader implications of these enforcement actions on economic stability and growth.

Minneapolis Businesses Face Unprecedented Challenges Amid Immigration Enforcement Surge

Minneapolis, Minnesota – The vibrant entrepreneurial spirit and resilience characteristic of American small businesses are being tested in Minneapolis, where a recent surge in federal immigration enforcement has significantly impacted the local economy. While economic growth is often fostered by clear, consistent regulatory environments, the current situation presents a complex challenge for business owners navigating heightened uncertainty and disruption in daily operations. Local leaders and business associations are highlighting the tangible effects on commerce and community well-being, emphasizing the intricate balance between enforcement and economic stability.

The situation in Minneapolis underscores a broader discussion about how federal actions can ripple through local economies, affecting everything from daily commerce to the long-term viability of small enterprises. As communities nationwide strive for economic vitality, understanding these dynamics is crucial for fostering environments where businesses can thrive without undue external pressures.

“Operation Metro Surge” Impacts Local Commerce

In December 2025, the U.S. Department of Homeland Security (DHS) initiated “Operation Metro Surge,” an escalated federal immigration enforcement effort in Minnesota, particularly in the Twin Cities of Minneapolis and Saint Paul. This operation has involved the deployment of numerous federal agents, leading to increased apprehension activities in residential neighborhoods, public spaces, and near businesses. Local business associations report that the $350 billion regional economy is experiencing notable effects.

The intensified enforcement has instilled fear within the community, causing many residents to limit their movement and reduce discretionary spending. This climate of apprehension has directly translated into diminished foot traffic and sales for numerous local businesses. Some establishments have reported substantial sales drops, with figures ranging from 50% to 100% for independent immigrant-run businesses along key corridors like Lake Street in Minneapolis. A January 2026 report indicated that some Minnesota businesses experienced dampened sales and slower foot traffic due to “fear of immigration enforcement.”

Small Businesses Bear the Brunt of Economic Downturn

Small businesses, particularly those in heavily Latino areas of South Minneapolis, have been disproportionately affected. Many mom-and-pop restaurants have displayed “No ICE” signs, signaling their stance against federal immigration enforcement actions in their vicinity. Numerous stores have temporarily closed, canceled events, or reduced their operating hours. The financial strain is significant for these enterprises, which often operate on thin margins, making them particularly vulnerable to sudden reductions in revenue. Owners have expressed concerns about covering essential costs such as rent, utilities, and payroll when customer numbers decline.

Beyond sales, the enforcement surge has also impacted employment. A January report indicated that nearly 20% of all surveyed businesses reported lower employment headcounts, citing similar concerns related to immigration enforcement. This reflects challenges in staffing, as employees, including those with lawful status, may hesitate to travel to job sites due to fear. The disruption extends even to white-collar businesses, which have reported impacts due to significant disruptions in “support systems” like schools and daycare programs that employees rely on.

Legal Challenges and Local Governance Response

In response to the federal actions, Minnesota Attorney General Keith Ellison, alongside the cities of Minneapolis and Saint Paul, filed a federal lawsuit against the Department of Homeland Security and related agencies in January 2026. The lawsuit seeks to halt the “unprecedented surge” of DHS agents into the state, declaring it unconstitutional and unlawful. The state and cities allege that the surge violates the First and Tenth Amendments of the Constitution, as well as the Administrative Procedure Act. They have also requested a temporary restraining order, citing immediate harm to the state and its citizens.

Local law enforcement resources have also been strained. The Minneapolis Police Department began tracking overtime related to increased public safety needs caused by DHS agents’ tactics and subsequent public reactions. By January 9, 2026, Minneapolis Police officers had worked over 3,000 hours of overtime, with an estimated cost to taxpayers of more than $2 million for a four-day period. The Justice Department has also issued subpoenas to several top officials in Minnesota, including the Minneapolis mayor, Jacob Frey, and the Minnesota governor, Tim Walz, as part of an investigation into whether Minneapolis officials conspired to impede federal immigration efforts.

Community Mobilization and Economic Blackout

The community’s response to the enforcement surge has been marked by widespread protests and organized action. Protesters have gathered to oppose federal immigration enforcement, leading to confrontations with agents. In a display of community unity and economic power, multiple labor unions and community groups endorsed a “Day of Truth and Freedom” on January 23, 2026, calling for Minnesotans to abstain from work, school, and shopping. This “statewide shutdown” aimed to demonstrate collective support for immigrants and to protest the federal presence.

Many businesses, from restaurants to schools, planned to participate in this economic blackout. For instance, one travel company owner and other shop owners intended to close, and a Nordic skiing hub, Finn Sisu, expected to lose about $6,000 in revenue by closing in solidarity. These actions reflect a broader sentiment that federal immigration authorities are pushing the limits of their power with little coordination with local officials, leading to confusion, fear, and mistrust. Community networks, building on prior organizing efforts, have established initiatives such as community watches to document federal actions, build camaraderie, and coordinate mutual aid among neighbors.

The Broader Economic Picture for Minnesota

Immigrants play a significant role in Minnesota’s economy, contributing as entrepreneurs, consumers, taxpayers, and workers. A February 2025 report highlighted that immigration has become increasingly important for the state’s long-term economic success. From 2020-2024, immigration accounted for 94% of Minnesota’s net population growth, and from 2019-2023, nearly 60% of the state’s total labor force and employment growth came from foreign-born workers. These workers have been crucial in mitigating workforce shortages. Minnesota faces a long-term population slowdown, driven by an aging population, declining birth rates, and negative net domestic migration, making immigration a vital component of future economic performance.

The current enforcement surge, by disrupting immigrant communities and the businesses that rely on their participation as workers and consumers, could exacerbate these long-term demographic and economic challenges. The uncertainty generated by these actions can hinder the very entrepreneurial innovation and small-business resilience that are critical for a thriving economy. Policymakers and community leaders continually seek strategies that balance security concerns with the fostering of an environment conducive to economic growth and personal achievement for all residents.

The economic headwinds facing Minneapolis businesses underscore the importance of local resilience and adaptability in challenging times. As Aiken, SC business owners know, a supportive community and clear regulatory landscape are vital for growth. Supporting our local businesses, engaging in community dialogues, and staying informed about economic trends can help ensure a robust and prosperous future for our neighborhoods.

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Author: STAFF HERE AIKEN

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