Henry Garnica, the owner of CentroMex Supermercado in East St. Paul, spoke to reporters at the Capitol Thursday Feb. 12, 2026. (Photo by Alyssa Chen/Minnesota Reformer)

Gov. Tim Walz proposed $10 million in forgivable loans for Minnesota businesses affected by the surge in federal immigration activity starting in December.

The incursion of around 3,000 federal immigration agents in Minnesota in what the Trump administration called “Operation Metro Surge” led to revenue losses for businesses, especially those in major immigrant corridors, as employees and customers stayed home out of fear of being detained by federal immigration agents.

The one-time forgivable loan proposal was announced Thursday at a Capitol press briefing, moments after U.S. border czar Tom Homan announced the end of the surge and claimed success in making the Twin Cities and Minnesota “safer.” The unprecedented federal incursion ignited massive resistance and resulted in two killings of American citizens, among other high-profile incidents.

The damage from Operation Metro Surge is still being assessed, Walz said. Minneapolis businesses are estimated to have lost $10 to $20 million a week in sales, the Star Tribune previously reported.

The relief package would apply to businesses that can demonstrate substantial revenue loss tied to the surge with revenues between $200,000 and $4 million annually. The loans would be between $2,500 to $25,000, with an opportunity to apply for 50% forgiveness after a year.

Walz acknowledged that the $10 million relief proposal is “a very small piece of” the recovery. He said that the upcoming legislative session, which starts Feb. 17, “needs to be about recovery of the damage that’s been done to us.” The prospects at the Legislature aren’t great, however: Republican House Speaker Lisa Demuth, who is also a frontrunner for the GOP nomination for governor, is likely disinclined to support anything that could even implicitly be viewed as a criticism of the Trump administration’s immigration agenda.

Henry Garnica, the owner of CentroMex Supermercado in St. Paul’s East Side, a grocery store that caters to the Hispanic community, spoke at the briefing. Federal agents visited CentroMex without a judicial warrant in December, where they faced off with residents who quickly arrived at the scene and formed a chain outside the entrance. The incident ended in the federal agents leaving.

Garnica, who immigrated from Colombia over 20 years ago and is a U.S. citizen, said that his sales have been down 30 to 40% during the federal immigration enforcement surge. He spoke wearing a whistle and showed reporters his passport that he’s been carrying: “Hopefully we don’t have to do this anymore.”

Garnica said he expects that recovering from the loss in sales will take at least three to six months.

Wisconsin Attorney General Josh Kaul addresses the Wisconsin Farmers Union at its annual lobby day in Madison. (Henry Redman | Wisconsin Examiner)

Wisconsin Attorney General Josh Kaul said that Immigration and Customs Enforcement’s large presence in Minnesota, which has resulted in the shooting death of one resident and numerous clashes between community members and federal agents, is not the right way to make communities safe. 

Speaking at the Wisconsin Farmers Union’s annual lobby day Wednesday morning, Kaul said he’s concerned about the federal government “obstructing” the investigation into the death of Minneapolis resident Renee Nicole Good, touted his office’s briefs in support of jurisdictions suing to get federal personnel out of cities and said he’s preparing for similar federal actions in Wisconsin. 

“What’s happening in Minneapolis now could very well be repeated in other communities around the country,” he said. “And so making sure that we’re prepared if that does happen is really important to me.”

He said that targeting people based on their race, ethnicity and political beliefs weaponizes the justice system in a way that makes communities less safe. 

“We do a lot of thinking about public safety at the Department of Justice, it is my top priority,” he said. “Taking actions that strengthen communities, that strengthen community ties, that build trust, that ensure that laws are evenhandedly enforced … and ensure that people who commit serious crimes are held accountable” is the Wisconsin DOJ’s focus, Kaul said.

“If you start targeting people based on any number of inappropriate factors, whether it’s their race or ethnicity or their viewpoint on political issues or any other inappropriate topic, that takes you away from the kind of law enforcement that makes a positive impact and makes communities safer,” he added. 

Kaul noted he’s worked often with Minnesota Attorney General Keith Ellison and said that the Minnesota Bureau of Criminal Apprehension needs to be involved in the investigation so there is transparency for everyone involved. 

“I’m very concerned that Minnesota BCA has so far been excluded from the investigative process into the death that happened,” he said. “It is critically important that there be transparency and that there be fairness. That, by the way, is important for everybody involved. If you were an officer involved in a critical incident, you deserve to have a fair investigation conducted so that the public knows what happened in that case, because without a fair, transparent investigation, there’s going to be uncertainty.”

“There’s been reporting recently that the FBI is not investigating necessarily the incident, but rather the wife of the woman who was killed,” he added later. “There’s the fact that six Assistant U.S. Attorneys, six federal prosecutors, have resigned in Minnesota because of the way that that investigation is being conducted. And I think it is really important that we distinguish between good faith efforts to get to the truth, that provide information clearly, and what’s going on in Minnesota, because what’s going on right there is obstructing full investigation and full review and risks that we not have information publicly available.”

ICE agents stage outside of Hibachi Buffet in South Minneapolis Tuesday, Jan. 6, 2026 as an estimated 2,000 more federal agents are deployed in the metropolitan area. (Photo by Nicole Neri/Minnesota Reformer)

Homeland Security Secretary Kristi Noem was in the Twin Cities Tuesday as the Trump administration launches what it’s calling “the largest DHS operation ever.”

CBS News reported over the weekend that around 2,000 Immigrations and Customs Enforcement agents are being deployed in Minnesota, in addition to the 700 already present in the state as part of “Operation Metro Surge,” which began in December.

In a video posted to the Department of Homeland Security’s official X account, Noem and several heavily armed and masked agents arrested a man in St. Paul. In another video, Noem appeared to greet and thank local ICE staff.

One photo showed Noem meeting with Assistant U.S. Attorney Joe Thompson, who is leading the prosecutions of people accused of defrauding Minnesota’s social services programs.

The Trump administration’s focus on Minnesota was sparked by unsubstantiated allegations shared by right-wing media figures that Somali Americans who committed fraud were using the proceeds to fund terrorist organizations abroad.

“@POTUS Trump and @Sec_Noem have rallied DHS law enforcement personnel to keep Americans safe and ERADICATE fraud,” DHS posted on X.

ICE did not respond to the Reformer’s requests for comment.

Immigrant rights organizations have been fielding many reports of ICE arrests around the metro, but an exact number of arrests is difficult to confirm. Unlike a few high-profile raids in Minneapolis and St. Paul in 2025, which involved dozens of agents and attracted large crowds, ICE appears to be focused on conducting smaller and faster operations.

Walz blasted the deployment as a waste of government resources on social media, sharing a video from a little over a week ago showing dozens of agents leading a single person out of a Hennepin County government building. He said the Trump administration did not give his office advance notice or any additional information on the operation.

“We have a ridiculous surge of apparently 2,000 people not coordinating with us that are for a show of the cameras,” Walz said at a news conference on Tuesday. “We don’t even know they are, they’ll be wearing masks.”

Noem fired back at the governor for accusing them of misusing taxpayer dollars given the widening scandal of fraud in state-run social service programs that led him to end his campaign for a third term on Monday.

Around the country and in Minnesota, immigration agents have been accused of violating constitutional rights: detaining U.S. citizens for days, targeting individuals based on their speech; and arresting and holding people without probable cause.

In late December, ICE agents entered a private area of the Hennepin County Medical Center in Minneapolis without a judicial warrant, according to immigrant rights activists and Democratic elected officials, who urged Hennepin Healthcare to adopt a clear policy and train employees on how to interact with immigration agents.

Janna Gewirtz O’Brien, a pediatrician and president-elect of the Minnesota Chapter of the American Academy of Pediatrics, said fear of ICE is keeping immigrant families from seeking health care.

“There is a sense of fear that has been perpetuated by our administration, and we need hospitals to step up,” Gewirtz O’Brien said.

The American Civil Liberties Union of Minnesota and three Minnesota-based law firms recently sued federal immigration authorities, alleging that ICE agents and their leaders are also routinely violating the constitutional rights of the people protesting their actions.

Minnesota Reformer is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Minnesota Reformer maintains editorial independence. Contact Editor J. Patrick Coolican for questions: info@minnesotareformer.com.