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ICE surge costs: Businesses seek relief
Minneapolis and St. Paul took the hardest hit during the ICE surge, which the cities estimate at more than $300 million in business losses. But business owners in greater Minnesota suffered as well, and some of them are Republican lawmakers.
ST. PAUL, Minn. (FOX 9) - The financial fallout from Operation Metro Surge is hitting Minnesota communities hard, with businesses and schools across the state starting to see the strain show up in tax figures.
Widespread business losses, school funding concerns
What we know:
Minneapolis and St. Paul estimate their business losses at more than $300 million, but the impact stretches into greater Minnesota. Small businesses, like Kerkhoven Country Butchers near Willmar, say the arrival of ICE agents led to a drop in customers and processing work, threatening their ability to stay open.
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MN lawmakers on economic impact of ICE operation [FULL]
Rep. Cedrick Frazier (DFL–New Hope) held a press conference Monday ahead of a House Ways and Means Committee informational hearing on the economic effects of Operation Metro Surge, focusing on the impacts on local governments, small businesses, and schools.
"This threatened our ability to stay in business and serve the community we love so deeply," said Giorgia Gallardo, co-owner of Kerkhoven Country Butchers.
The effects are also showing up in schools, especially in communities with large immigrant populations. Administrators in Columbia Heights and Fridley estimate that dozens of students have not returned since the surge, costing each district more than $1 million in state funding.
Some lawmakers have dismissed these stories as hearsay, but others are pushing back.
"I don't think you can ignore these individuals standing here, they've been directly impacted. That's not hearsay," said Rep. Cedrick Frazier, DFL-New Hope.
Business owners, lawmakers call for relief
Why you should care:
The debate over relief funds is heating up at the Capitol. Willmar Republican Dave Baker admitted that Metro Surge was poorly executed and hurt businesses, including his own motel, which lost a couple of housekeepers.
He also pointed to state policies that left businesses vulnerable.
"Now's our chance to look at everything. Now's our to do what our businesses really need us to do," said Baker.
DFL lawmakers hope Baker and other Republicans will join efforts to create a business relief fund.
"Small business owners like me are being impacted by things completely out of our control. And when that happens, we should not be left alone to carry all the weight," said Maysy Her of Xieng Khouang Restaurant & Banquet Hall.
Lawmakers are considering a $100 million House bill and two Senate bills that would set up $100 million funds for loans or grants. These proposals will be discussed in committee this week, but it remains to be seen whether any will pass in the House.
The backstory:
Operation Metro Surge led to widespread disruption for both businesses and schools. Livestock farmers lost employees, cutting into the supply chain for local processors. Many customers disappeared, and the ripple effects are still being felt as communities try to recover.
What we don't know:
It is still unclear which, if any, of the proposed relief bills will pass or how quickly affected businesses and schools might receive help.
The Source: FOX 9’s Corin Hoggard reported live from the Capitol and spoke with business owners, lawmakers and school administrators for this story.