Governor Tim Walz Proposes $10 Million Relief for Small Businesses Hit by ICE Surge

ST. PAUL, Minn. – Minnesota Governor Tim Walz announced a bold $10 million emergency relief package on February 12, 2026, aimed at helping small businesses recover from the economic fallout of the federal Operation Metro Surge—the Trump administration’s intense immigration enforcement push that deployed thousands of ICE agents across the state since December.

The proposal, part of Walz’s 2026 legislative session priorities, would provide one-time forgivable loans ranging from $2,500 to $25,000 through the Minnesota Department of Employment and Economic Development (DEED).

Eligible businesses—primarily those with annual revenues between $200,000 and $4 million—must demonstrate “substantial revenue loss” during the surge period. After one year, qualifying applicants could seek forgiveness for up to 50% of the loan, mirroring COVID-era relief models.

Walz described the surge as causing “deep damage, generational trauma, and economic ruin,” particularly for immigrant-owned shops in the Twin Cities metro. Local estimates suggest losses of $10–20 million per week collectively, with corridors like Lake Street reporting up to $46 million in damages since December.

The governor emphasized support for “immigrant small business owners” who faced closures, boycotts, and fear-driven customer drops amid protests, raids, and the tragic deaths of U.S. citizens Renee Good and Alex Pretti during enforcement actions.

Speaking to reporters, Walz expressed cautious optimism about border czar Tom Homan’s announcement that the surge would end, with most agents drawing down within the week. “The road to recovery starts now,” he said, while demanding federal accountability: “The federal government needs to pay for what they broke here.”

Republicans quickly criticized the plan as a potential “new avenue for fraud,” pointing to Minnesota’s history of relief program scandals and questioning why state taxpayers should cover damages from federal operations.

Supporters, including business owners like CentroMex’s Henry Garnica, praised it as essential for rebuilding trust and economic stability in affected communities.

The bill requires legislative approval in the upcoming session.

As Minnesota shifts focus from enforcement to recovery, Walz’s proposal highlights the ongoing clash between state priorities and federal immigration policy—leaving small business owners hoping for swift aid amid lingering uncertainty.

What’s your take on this move by Tim Walz?