Minneapolis says Operation Metro Surge Caused Nearly $700 Million in Economic Damage, Probably More

At a press conference at Colonial Market in south Minneapolis, city officials said the report provides a roadmap for long-term recovery after months of disruption that affected immigrant families, schools, businesses and public services.

Minneapolis officials released an updated impact assessment Wednesday estimating that Operation Metro Surge caused nearly $700 million in economic disruption across the city, far exceeding the $203 million in losses previously identified in an earlier report focused on January alone.

The new assessment, which covers December 2025 through April 2026, documents widespread effects on businesses, workers, families and public services.

"The impact was felt far beyond those who were directly targeted," Mayor Jacob Frey said during a news conference at Colonial Market in south Minneapolis. "We're talking about businesses that lost customers, workers that lost wages, families that struggled to put food on the table, mental health distress, children that missed meals and were unable to attend school."

Ward 9 Council Member Jason Chavez said the report captures only part of the operation's effects.

"What can't be measured is the heartache, the stress, the loss felt by our neighbors, our families and friends," Chavez said. "We know it's even greater, but it is important to be able to show the community this is the impact that it had."

Fear of enforcement activity caused many residents to avoid work, schools, medical appointments and commercial corridors for extended periods, contributing to declines in economic activity throughout Minneapolis.

Emergency Management Director Rachel Sayre, whose office led the assessment, said the estimate remains conservative.

"$700 million — that's how much the surge impacted our city," Sayre said. "And once again, that's an underestimate. We are closer to $1 billion than we are to $1 million."

Sayre said the report was compiled with information from more than 20 city departments along with county, state and community partners. Among the impacts cited in the report:

• Nearly 184,000 fewer meals served through Minneapolis Public Schools.

• Significant declines in student attendance.

• Lost wages and business revenue.

• Delayed medical care.

• Increased mental health needs.

• Nearly $10 million in city spending for payroll, overtime and operational costs.

The city has already approved several recovery initiatives, including a $7 million Small Business Resiliency Fund. Officials said nearly 1,200 businesses have begun receiving license fee refunds totaling $1.7 million.

Minneapolis is also providing $3.8 million in emergency rental assistance, supplemented by a $3 million contribution from the Wilson Foundation.

Daniel Hernandez, owner of Colonial Market, said the operation devastated his business. Hernandez said the store, which opened in November 2024 after a $3 million investment, saw sales drop dramatically and staffing shrink from 25 employees to two.

"We're in here closing a store with so much dream that we only opened a year and a half ago and losing over $3 million," Hernandez said. Despite the closure, Hernandez said he plans to continue investing in Minneapolis.

Jennifer Jackson King, owner of Prima Restaurant on Lyndale Avenue, said she has weathered nearly three decades of challenges as a business owner, including road construction and the COVID-19 pandemic.

"I thought COVID was probably the most difficult time to be in our food and beverage industry," King said. "But I think Operation Metro Surge was probably worse."

King said she and her family helped transport employees to work and medical appointments when many workers were afraid to leave their homes. Officials also reminded community that their support is needed as ICE remains in the Twin Cities.

"I want to continue to advise our neighbors to continue showing up to alert our neighbors about any presence of ICE, because we're still seeing people picked up off the streets," said Chavez.

"You can help by going out to eat. You can help by patronizing these small local businesses," said Frey. "You can help heading over to East Lake Street, or West Broadway, or downtown, and just supporting these incredible Minneapolis businesses that have been so substantially impacted."

According to the report, the Central and Whittier neighborhoods experienced the highest levels of reported Immigration and Customs Enforcement activity during the operation.