By Joe Barrett | Photography by Tim Gruber for WSJ
MINNEAPOLIS -- After ICE agents descended on the Twin Cities starting in December, a Hispanic business enclave on East Lake Street became a ghost town. Darkened store fronts outnumbered open ones, and orange-vested volunteers wearing whistles patrolled the sidewalks.
Nearly six weeks after federal officials said they were ending "Operation Metro Surge," most shops and taquerias are back -- but many of their customers aren't.
"Right now it's very slow, pero, it's OK," said Javier Dias, owner of Javi's Gift Shop, switching between English and Spanish. "We can make it. We need maybe one more month."
Since the fatal shootings of two U.S. citizens in Minneapolis, clashes with demonstrators and the ouster of Kristi Noem as Homeland Security secretary, large-scale raids have quieted across U.S. cities. The financial effects still echo, according to businesses, public officials and government reports.
The Federal Reserve's February "beige book," an anecdotal survey of nationwide economic conditions, cited immigration enforcement from Boston to Minnesota. In Maine, merchants reported weaker sales and staffing disruptions. In Chicago, construction labor shortages -- tied in part to raids -- pushed up costs and delayed projects. Twin Cities' hospitality and tourism firms reported that even "legal, foreign-born workers were choosing not to work due to safety concerns." A local consulting firm warned of "a lagging negative effect in a month or two."
Some East Lake Street shop owners attribute the slowdown to customers being behind on bills or still wary of ICE, whether they are undocumented or have legal status. Several police chiefs from the Minneapolis-St. Paul area publicly criticized Metro Surge, saying immigration officers were stopping people of color who are in the U.S. legally.
An ICE spokesperson defended the operation: "Removing dangerous criminals from our streets makes it safer for everyone -- including business owners and their customers."
Last week, speaking at the Eastside YMCA in St. Paul, Democratic Gov. Tim Walz proposed $10 million in partially forgivable loans for businesses heavily affected by the surge, and rental assistance to more than 9,000 families. The "economic impacts will ripple out for months," said Matt Varilek, commissioner of Minnesota's Department of Employment and Economic Development.
Still, Walz needs Republican support to pass the measure, at the same time the Minnesota Legislature is also debating antifraud measures after a safety-net scandal involving dozens of Somali migrants. Washington has weighed in, too. Rep. Tom Emmer (R., Minn.), the House Republicans' whip, called Walz's proposed loan program "a new avenue for fraud in Minnesota."
Walz also has called on the federal government to pay Minnesota for damages, a notion echoed by Sen. Amy Klobuchar, a Minnesota Democrat who is running for governor. "All these extra costs that our local law enforcement have incurred," she said, "they should reimburse us."
Though a precise accounting hasn't yet emerged, Minneapolis and St. Paul have estimated hundreds of millions of dollars in lost wages and business revenue. Police overtime soared.
" Nada ayuda," -- no help -- said Araceli Orozco when asked if she had received assistance keeping her business afloat.
She owns a food stand and nearby restaurant-bar, both called Puerto Veracruzano. The stand closed through much of the surge; the restaurant stayed open but only recently began serving food again. On a good day, she sees half of her old business; on a bad day, a fifth.
Relief has started to trickle in. Minneapolis put forward a plan to spend $2 million on rental aid, with $1 million of that matched by a local entrepreneur. The Lake Street Council, a community group, is giving out $800,000 in emergency grants to businesses; the Minneapolis Foundation has distributed about $6 million in grants to small businesses, including $1.2 million raised for restaurants by the Salt Cure Fund.
A five-block stretch of mostly Hispanic merchants on East Lake Street has more foot traffic and almost every empty storefront has sprung back to life since a reporter visited in January. At Plaza Mexico, where a framed picture of the Virgin of Guadalupe looks over the food court, customers filled about half the tables during lunchtime recently.
Luis Reyes Rojas, owner of Pinedas Tacos Plus, remained open during the surge but kept his doors locked. When agents came knocking, Rojas sent his employees to the basement. Now, he is comfortable keeping his front door unlocked.
"It's better times for everybody," he said. "You can go for the food and the store. You can go outside. It's better."
Across the street, Dias, the owner of Javi's Gift Shop, greeted a reporter warmly and agreed to a photo, something he had been too tense to do in January.
The climb back is tougher for those who shut down entirely, like Jennifer Arroyo's family. Their shop, Jennifer's Fashion, closed for about three months. "It was hard," she said, surrounded by sparkly dresses and silk shirts. "You had to pay rent by the 5th." There was more help during Covid, she said. "This time around it's harder because we've lost more customers."
Write to Joe Barrett at Joseph.Barrett@wsj.com
(END) Dow Jones Newswires
March 25, 2026 05:30 ET (09:30 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.
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