Economic impact of ICE surge in Minnesota

MINNEAPOLIS (FOX 9) - State officials detailed the economic impact of ICE operations in Minnesota, even as federal authorities say Operation Metro Surge is scaling back while hundreds of agents remain statewide.

Economic impacts of Operation Metro Surge

Local perspective:

Minnesota State Auditor Julie Blaha and two state lawmakers, Rep. Brad Tabke (DFL-Shakopee) and Sen. Liz Boldon (DFL-Rochester), outlined what they describe as the "severe economic damage" inflicted on Minnesota communities from the ongoing federal immigration crackdown. 

"Just like the brutal directions of ICE that targeted our most vulnerable neighbors, the economic attacks have hit the most vulnerable parts of our economy," said Blaha.

Leaders discussed the financial toll they attribute to federal immigration enforcement efforts under President Donald Trump’s administration. The release claims that ICE tactics, including warrantless home invasions, roving patrols and violence against residents, have created widespread fear among workers and customers, disrupting daily life and devastated local economies. 

"When people are afraid to leave their homes, workers lose wages, businesses lose customers, rent goes unpaid and cities lose massive revenue. And on top of that, taxpayers are left footing the bill for local police overtime," Blaha said in a statement. 

During the call, Blaha highlighted the economic toll, noting Minneapolis alone has estimated $203 million in economic damages, including $81 million in business losses and $106.1 million in lost wages. However, the impact extends beyond the metro area, affecting local governments with tight budgets.

Blaha also cited broader impacts, including 76,200 Minnesotans experiencing food insecurity related to the disruption and a reported 50% drop in mental health services utilization. Meanwhile, schools have dealt with enrollment drops as students moved to online learning, which can affect their budgets and what revenue they get from the state. 

"Chaos is costly. So this chaos is going to ripple through our entire economy," explained Blaha. 

Rep. Tabke outlined the economic impact of ICE operations in his community, stating that construction projects have stalled, companies are defaulting on loans and some businesses have closed or lost revenue.

"This is just unsustainable for our economy, for our businesses, and for things moving forward," Tabke said.

Minneapolis police financial impacts

Dig deeper:

Police departments have also been impacted by ICE operations. Since the crackdown began in December, Minneapolis police have handled more than 50,000 calls. More than 1,000 requests for days off were canceled, and more than 500 shifts were extended. Additionally, nine officers were injured, 14 reported experiencing PTSD, and eight retired.

According to Minneapolis police, from Jan. 7, when Renee Good was killed, until Feb. 1, the financial cost to the department exceeded $5 million. Blaha noted that figure was roughly double what was budgeted for overtime for all of 2026.