Minneapolis Losing Up To $20M A Week As Immigration Enforcement Keeps Shoppers, Workers Home

ST. PAUL, MN — Minnesota businesses are losing an estimated $10 million to $20 million a week as fear tied to expanded federal immigration enforcement keeps customers away from stores and workers home from their jobs, according to economic estimates.

State and city officials say the losses are hitting small and immigrant-owned businesses especially hard, with reduced foot traffic, staffing shortages, canceled events, and closures becoming increasingly common across the Twin Cities and beyond.

According to Minneapolis estimates, businesses across the city are losing between $10 million and $20 million in revenue each week. The Lake Street corridor alone lost an estimated $46 million in revenue between December 2025 and January 2026.

A January survey conducted by the Latino Economic Development Center in St. Paul found that 44 percent of surveyed businesses had temporarily closed, while fewer than 20 percent reported operating normally.

Nearly 40 percent said they could remain viable with outside support, 25 percent reported downsizing staff to stay open, and 9 percent said they were considering permanent closure.

DEED Commissioner Matt Varilek said the economic effects extend beyond individual storefronts and are rippling through Minnesota’s broader economy.

“These federal actions continue to have a chilling effect on Minnesota’s economy, especially for small businesses,” Varilek said. “We hear daily from entrepreneurs, workers, and support organizations who say their own federal government is deeply harming their individual livelihoods and the state’s economy as a whole.”

Restaurant owner Saed Wadi, whose businesses include World Street Kitchen, Milkjam and Saffron, said the uncertainty is affecting not only current revenue but future growth as well.

“Financial losses are certainly part of the story, but the uncertainty is affecting future growth, too,” Wadi said. “January and February are typically when we book a large share of summer catering events, but this year, bookings have dropped significantly as customers hesitate to make commitments.”

A Meet Minneapolis survey found that 90 percent of restaurants, hotels, and retail and service providers reported being affected, while 72 percent reported staff absenteeism.

Twin Cities home builders and developers have also reported workforce shortages and project delays, contributing to slower home listings and reduced rental income.

Pending home sales in the Twin Cities metro fell 19.2 percent last month, compared with a 1.6 percent decline nationally, according to Redfin.

In response, Gov. Tim Walz proclaimed February as Shop Local Month in Minnesota, encouraging residents to support local businesses and highlighting state resources aimed at helping owners weather the economic disruption.

State officials also said the economic and workforce impacts will be a focus of the upcoming legislative session.

ALSO READ: Walz: ‘Days, Not Weeks’ For Possible End To Operation Metro Surge