Minnesota Gov. Tim Walz is proposing $10 million in state aid for businesses in Minneapolis and surrounding areas that he says have suffered economic losses amid heightened federal immigration enforcement.
Walz’s comments came after White House border advisor Tom Homan announced Thursday that most Immigration and Customs Enforcement (ICE) officers would be withdrawn from Minneapolis following a series of enforcement operations that resulted in more than 4,000 arrests of illegal migrants in the area.
“They left us with economic ruin,” Walz said, arguing that intensified federal enforcement has disrupted local commerce. He said the state would focus on “economic recovery” efforts, particularly for small businesses and immigrant-owned businesses affected by reduced customer traffic and workforce instability.
“One of the first things we can do … is: What can we start doing on the economic recovery, the damage that has been done to our economy, specifically to small business owners, and even more specifically, to immigrant small business owners,” Walz said. He added that “the federal government needs to pay for what they broke here.”
Matt Varilek, an economic development official in Walz’s administration, said many businesses are facing “massive reductions” in both customers and employees as a result of immigration enforcement activity. He cited workers and customers who “don’t feel comfortable showing up,” leading to sharp declines in revenue.
Henry Garcia, a Colombian immigrant who manages a grocery store in St. Paul, said his store’s sales have fallen by roughly half since ICE activity increased late last year. “My customers are afraid to go shopping,” Garcia said, adding that even increased patronage from other residents has not offset the losses. “Sales dropped by half, and goodwill doesn’t cover rent … We need more [grants].”
Walz emphasized support for Minnesota’s immigrant communities broadly, without distinguishing between legal immigrants and those in the country illegally. “Immigrant small business owners … for most of our history, [are] the epitome of the American Dream: ‘Come to this country with nothing and build something to be proud!’” he said. He insisted that immigration is “the core of who we are” as a state and a nation.
The proposal comes as federal authorities continue investigating large-scale fraud cases in Minnesota, including the Feeding Our Future scandal, in which prosecutors allege that hundreds of millions of dollars in federal child nutrition funds were fraudulently obtained. Dozens of individuals have been charged in that case.
Walz has previously said his administration wants to cooperate with federal investigations while ensuring due process and protecting lawful residents.
The governor’s proposal has drawn criticism from immigration enforcement advocates who argue that federal actions are restoring compliance with immigration law and protecting labor markets. Supporters of stricter enforcement say that reducing the presence of illegal migrant labor can increase wages and reduce housing pressures for American citizens.
Restaurant Business Online reported earlier this year that tighter labor markets resulting from deportations could lead to rising wages in the restaurant sector, citing projections from Oxford Economics.
Walz, however, framed the issue as an economic disruption that disproportionately harms small businesses. He said the state’s immediate priority is stabilizing affected neighborhoods and ensuring businesses can remain open.
The $10 million aid proposal is expected to face debate in the state legislature as Minnesota officials weigh how to balance economic concerns, federal immigration policy and public safety priorities.
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Waltz should be filling those jobs with AMERICANS, secondly under his administration $9 billion of American taxpayers has gone down a rabbit hole because of the inept governing of his administration, we don’t owe you a damn thing. YOU OWE THE AMERICAN TAXPAYER A LOT..