If President Donald Trump’s immigration crackdown in Minnesota were analogous to a military campaign, a new report from the Minneapolis Fed reads as a battle-damage evaluation.
The bank—covering Minnesota, Montana, North and South Dakota, plus parts of Wisconsin and Michigan—released one of its on business and economic conditions on Wednesday.
Like a military conflict, the influx of federal agents into Minneapolis was labeled Operation Metro Surge. It launched in early December, but city tensions erupted a month later: immigration officers fatally shot two individuals, Renee Good and Alex Pretti, while bystanders recorded videos of young children and elderly people being detained.
The Minneapolis Fed’s report characterized conditions in a formal, unemotional tone, noting that overall economic activity in its district remained flat. While prices, wages, and consumer spending were on the rise, the region’s agricultural, manufacturing, and real estate sectors were underperforming.
However, details from businesses surveyed by the Minneapolis Fed uncovered the extent of harm caused by Trump’s immigration crackdown. A contact from a landscaping company stated the crackdown had led workers to either stay home or depart the area.
“We’re currently hiring to replace these workers or find more dependable substitutes, but there’s no one available to hire,” the individual informed the Minneapolis Fed.
The report further noted that a “large number” of immigrant workers in Minnesota were unable to work because of the enforcement actions, with lost income putting their ability to cover rent, utilities, and other basic needs at risk.
The lack of immigrant presence was so acute that a workforce development organization providing English classes to new arrivals experienced a 43% drop in enrollment.
Since ICE and Border Patrol agents were detaining U.S. citizens and legally residing immigrants, their raids generated a widespread climate of fear.
“Hospitality and tourism companies, among others, reported that legal foreign-born workers were opting not to work because of safety worries—this was affecting both their operations and overall customer demand,” the Minneapolis Fed stated.
Additionally, enforcement activities affected a construction firm and clients of a consulting company, which forecast “a delayed negative impact in a month or two,” per the report.
Several contacts from minority- and women-owned businesses noted that employees, vendors, and customers all “were afraid to travel” because of the presence of federal agents.
Foot traffic declined significantly, particularly for retail and food service businesses, with many struggling to meet their financial obligations, the Beige Book noted. In fact, several contacts from financial institutions observed a substantial increase in requests for loan modifications.
Eventually, the backlash against Operation Metro Surge expanded, with some Republican lawmakers calling for a reevaluation of Trump’s tactics.
In late January, the president appointed border czar Tom Homan to oversee the crackdown, effectively demoting Border Patrol’s Greg Bovino. Then, in mid-February, Homan announced the termination of Operation Metro Surge, initiating a gradual reduction of federal agents.
On Thursday, Trump dismissed Homeland Security Secretary Kristi Noem, who will be .