Minneapolis Business Owners Still Struggling Despite Homeland Security Chief’s Dismissal

Minneapolis businesses serving immigrant communities continue facing severe economic hardship following the nation's largest immigration enforcement operation. Despite President Trump firing Homeland Security Secretary Kristi Noem on Thursday, local entrepreneurs say the damage from the crackdown persists with drastically reduced customer spending and widespread business closures.

MINNEAPOLIS (AP) — A south Minneapolis grocery store owner who has been serving Latino families for more than five years says his business is now facing closure because of lasting financial harm from the country’s most extensive immigration enforcement operation.

Daniel Hernandez reports that his customers continue avoiding public spaces or have dramatically cut back their purchases, while 10 out of 12 Latino small businesses leasing space in his building have remained closed since the operation began. Despite the Trump administration reducing the scope of the crackdown and dismissing Homeland Security Secretary Kristi Noem on Thursday, the economic consequences continue to affect the community.

The Mexican immigrant explained that since the enforcement action started in December, just one tenant — an ice cream shop owned by Ecuadorians — has managed to reopen.

“I don’t know if my business will survive, being honest,” Hernandez said. “The amount of damage is so big that I am afraid.”

Noem’s removal came following growing criticism of her leadership, particularly regarding her management of the enforcement operation and the response to fatal shootings of two Minneapolis residents, Renee Good and Alex Pretti, by federal agents.

The exact number of Immigration and Customs Enforcement and other federal personnel remaining in Minnesota remains unclear after reaching approximately 3,000 during the operation’s peak. Noem testified to Congress this week that 650 officers were still deployed.

However, Minnesota Senator Amy Klobuchar reported to Minnesota Public Radio that White House border coordinator Tom Homan contacted her to dispute that figure, stating they had reduced staffing to the original level of slightly more than 100 ICE agents, plus additional investigators handling fraud cases.

Federal immigration and homeland security agencies did not respond to Friday requests for clarification.

Similar to Hernandez’s Colonial Market, numerous immigrant-owned businesses and those serving immigrant populations are experiencing continued financial difficulties from dramatic sales declines.

“Instead of spending $150, now they spend $30, $40,” Hernandez said.

Some customers have stopped visiting entirely — either from fear of detention regardless of immigration status, or because financial constraints prevent them from working.

Minneapolis Mayor Jacob Frey reported last month that small businesses have suffered collective revenue losses in the tens of millions. He calculated the federal immigration operation cost the city’s economy $203 million during January alone and resulted in 76,000 residents experiencing food insecurity.

“We warn our community that the fight is not over,” stated Jaylani Hussein, executive director of the Minnesota chapter of the Council on American-Islamic Relations and a Somali American, during Friday’s press conference. “It is a good day to say good riddance to Kristi Noem. But it’s not a good day to walk away from the fight.”

Many activists believe their intensive community mobilization against the operation was instrumental in forcing the administration to retreat. They credit the experience with creating robust neighborhood support systems that will endure and continue advocating for social justice.

Minneapolis resident Patty O’Keefe, who was arrested in January for following a federal agent’s vehicle, expressed satisfaction about Noem’s departure but emphasized more changes are needed.

“It’s a sign that we’re winning, that the Trump administration feels like they have to make a change to save face because they’re losing public support and losing the narrative,” she said. “And I think it’s a testament to the hard work of Minnesotans who fought back against this war of political retribution and xenophobia that has been and continues to be waged against us.”

Brandon Sigüenza, who was arrested alongside O’Keefe, said the community isn’t celebrating because the enforcement continues.

“I don’t think Minneapolitans are necessarily dancing in the streets. Because there’s still no justice for Renee Good, there’s still no justice for Alex Pretti,” Sigüenza said.

Psychologist Lucy Olson helped establish a covert grassroots network that expanded to include 2,000 volunteers supporting approximately 500 immigrant families with legal aid, housing, food, and rental assistance. She believes the mutual support systems created during the crackdown will persist to address ongoing community needs.

“For those of us who had the honor of participating as volunteers, I think we will never be the same,” Olson said. “I think there’s been cross-cultural friendships, the opportunity to build out neighborhood networks that have changed the face of our city.”

Civil rights attorney and activist Nekima Levy Armstrong told the press conference with Hussein that Noem should have been dismissed following Good and Pretti’s deaths.

Levy Armstrong, an ordained nondenominational Christian minister, is among 39 individuals facing indictments for their alleged participation in a January protest at a St. Paul church where pastor David Easterwood serves as a senior local ICE official. She said she had been praying for Thursday’s news of Noem’s dismissal.

“So while we celebrate the fact that this woman has been removed from her high perch — where she thought she was untouchable, she thought she could literally allow these agents to get away with murder — we recognize that this system is very broken,” Levy Armstrong said.

Brenda Lewis, who leads Fridley Public Schools in suburban Minneapolis, said Noem’s dismissal “doesn’t really matter” because student safety in her district remains compromised.

Fridley, serving many Somali and Ecuadorian families, has experienced increased ICE presence over two months. Federal vehicles appeared in neighborhoods near schools and at school board members’ residences.

Among the district’s approximately 2,700 students, more than 112 have withdrawn enrollment, Lewis reported. An additional 400 students are attending virtually. The district has also lost $130,000 in funding due to decreased meal program participation.

“It’s not a Democrat or a Republican issue,” Lewis said. “It’s about children’s safety, and we need to really come together and ensure that this absolute removal of safety for school children by a federal agency can never ever happen again in the state or the country.”

While Minnesota’s leading Republican officials generally backed Noem’s management of the operation, they have remained largely quiet about her removal. House Majority Whip Tom Emmer — the state’s highest-ranking Republican — did not respond to Friday requests for comment.

However, moderate GOP state Senator Jim Abeler from suburban Anoka noted he contacted Noem in January expressing “grave concerns” about some of her officers’ conduct in Minnesota.

“With her departure, I hope that what happened in Minnesota won’t happen anywhere else,” Abeler said in a statement.