Minneapolis officials say the city suffered huge financial losses — more than $203 million — because of Operation Metro Surge, a large federal immigration enforcement action that took place in January and February 2026. This cost estimate comes from a preliminary impact report released by the city.
Operation Metro Surge was a federal operation that brought thousands of agents from Immigration and Customs Enforcement (ICE) and Customs and Border Protection into Minneapolis, with the stated goal of arresting people in the U.S. without legal status. While the federal government said the operation focused on criminal suspects, city leaders and many residents saw it differently. The operation caused widespread fear and uncertainty in the community, and many people were afraid to go about their normal daily routines, like going to work or school.
According to the city’s assessment, the losses fall into several major areas. Workers in Minneapolis missed out on about $47 million in wages because many residents — especially immigrants and households with families — stayed home instead of going to work out of fear of detentions or arrests. Restaurants, small businesses, and other local companies lost about $81 million in revenue as customers stayed away and normal business activity dropped sharply. In addition, hotels saw tens of millions in revenue reduction when rooms were canceled, especially from out-of-town visitors changing travel plans.
The financial impact wasn’t limited to business sales and wages. City services and operations were strained, with additional police overtime, administrative costs, and emergency responses adding to the bill. The report’s estimate of $203 million combines both community losses and direct effects on city services. Officials described the number as a snapshot of the damage over one month during the peak of the federal operation.
City leaders also emphasized that the people and communities most affected were those already vulnerable. Many of the residents hit hardest by the economic downturn were immigrants, refugees, Native Americans, Black and African American families, and people of color. Thousands were said to need urgent relief, not only to cover lost income but also to meet basic needs like food, shelter, and mental health support. According to the city’s numbers, about 76,000 Minneapolis residents — nearly one in five people — were facing immediate needs tied to the disruption.
The drop in business activity also had broader effects on the city’s economy and social systems. With families not earning income and fewer customers spending money locally, demand for emergency services rose. Food assistance programs reported more people needing help, and school officials said that some children were facing new challenges because parents were worried about leaving home or had lost income.
Officials in Minneapolis and Minnesota have been calling for financial help to support recovery, arguing that the city and state should not shoulder the entire burden alone. While Operation Metro Surge was being scaled back and federal agents began leaving the area in late February, city leaders insisted that the harm already done would continue to affect residents and businesses unless additional support arrives.
Mayor Jacob Frey and other local leaders have spoken publicly about the city’s need to rebuild. Frey described the economic impact as “staggering” and warned that households, schools, and local services face ongoing challenges because of how deeply the operation disrupted life in Minneapolis. They urged both state and federal assistance to help families recover from lost wages, business owners to rebuild customer trust, and community groups to address food insecurity and housing stability.
While the city’s report focused on the numbers, many residents say the losses go beyond dollars and cents. Business owners described slower customer traffic, some restaurants reported significant drops in weekend and weekday sales, and social service providers pointed to the emotional toll on families who were afraid to go out. Community leaders organized mutual aid efforts and support networks to help people facing hardship, but they say that longer-term aid from government will be necessary.
In short, Minneapolis officials describe Operation Metro Surge as having inflicted real economic and social harm on the city. These impacts — millions in lost wages, reduced business revenue, increased food insecurity, and more — show how a large federal enforcement action can ripple through a local urban economy and daily life, affecting ordinary residents far beyond those targeted by arrests.
