Activists confronted a group of Immigration and Customs Enforcement officers in the largely Somali neighborhood of Cedar-Riverside in Minneapolis, Tuesday, Dec. 9, 2025. (AP Photo/Mark Vancleave)
ST. PAUL, Minn. (Minnesota Reformer) — The Minnesota Senate on Thursday passed a zero-interest, $100 million forgivable loan program for businesses across the state that lost revenue this past winter because of the federal government’s immigration crackdown.
Swarming groups of federal agents racially profiling and arresting people in the streets caused many people to stay home from work and refrain from shopping. It’s unclear exactly how much money Minnesota businesses lost because of Operation Metro Surge, but the cities of Minneapolis and St. Paul estimated in a court filing that the Twin Cities local economy lost $610 million.
Federal employment data shows Minnesota lost 5,700 hospitality jobs and 4,400 construction jobs from December to February. The respective declines represent 2.1% and 3% of total statewide employment in those sectors. Both sectors employ many Latino Minnesotans who likely felt threatened by the presence of some 3,000 federal agents here.
Help is most likely not on the way, however: Democrats hold a one-seat majority in the Senate, and the Minnesota House is deadlocked between Democrats and Republicans. GOP lawmakers this session have said the claims of constitutional rights violations were unfounded and have praised the immigration enforcement surge, which resulted in the deaths of two Minnesotans. Because of the GOP’s resistance, the Operation Metro Surge bills are unlikely to pass this year.
The Senate bill, SF 4535, specifies that $18 million would be available for businesses in greater Minnesota, while the remaining $82 million would go to the seven-county metro area. Businesses must be in good standing with the state, operate a physical location and demonstrate that they experienced a revenue loss between December and the end of February compared to the previous year.
“Some of our most vulnerable friends and neighbors suffered enormous damage due to the federal government’s surge this winter. This bill makes an effort to help people whose businesses and livelihoods have been impacted,” said Sen. Bobby Joe Champion, DFL-Minneapolis, who is the chief author of the bill.
The Senate passed the bill 35-31, with one Republican joining the Democrats — Sen. Jim Abeler of Anoka. Abeler has been critical of Operation Metro Surge and called for an end to the widespread detention of citizens and legal residents.
Senate Republicans on Thursday said that Minnesota has a bad track record when it comes to distributing public dollars — citing the hundreds of millions stolen from safety net programs — so the state shouldn’t give additional taxpayer dollars to businesses.
“Minnesota is a generous place. Minnesotans are giving people, and we have given enough,” said Sen. Michael Holmstrom, R-Buffalo.
The Minnesota Legislature over the years has doled out money to industries and Minnesotans who’ve experienced hardship. In 2015, then-Gov. Mark Dayton proposed an aid package for struggling businesses near Lake Mille Lacs because the walleye population was in decline.
When a fire swept through Madelia, the Legislature delivered $1.7 million in aid in 2017 to restore its business district. The Legislature has expanded unemployment benefits to Iron Range miners.
At the height of the COVID-19 pandemic, the Legislature passed a $216 million relief package for businesses, including $14 million for movie theaters and convention centers.
Champion questioned skeptical Republicans during a recent committee hearing: “When we hear (people) suggest that we should not be reaching out and helping Minnesotans, that is the history of Minnesota. Why should now be any different?”
Just this session, the Legislature passed — and Gov. Tim Walz this week signed — a bill that allows more dairy farmers to apply for a grant program to receive funds when the margin between milk prices and feed costs is low.
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