Democrat leaders in Minneapolis are demanding a staggering $200 million in taxpayer-funded “relief” — not for natural disaster recovery or infrastructure collapse — but because federal immigration enforcement is doing exactly what it’s supposed to do.
After U.S. Immigration and Customs Enforcement (ICE) ramped up operations in the city earlier this year, targeting illegal immigrants for arrest and deportation, local officials claim the economic fallout has been devastating. Businesses that had long relied on low-wage illegal labor suddenly found themselves short-staffed. Now, instead of reconsidering years of “Sanctuary City” policies, city leaders want Washington — and taxpayers — to bail them out.
Minneapolis Mayor Jacob Frey argues that residents shouldn’t have to “pay for the situation created by the federal government.” But critics note the federal government didn’t create the problem — it enforced the law.
At a February 13 press conference, City Operations Officer Margaret Anderson Kelliher claimed the city’s “financial stability has been called into question” by ICE activity. According to local officials, businesses have lost tens of millions in revenue as illegal workers stopped showing up for shifts out of fear of deportation.
In reality, what’s being exposed is an economic model built on shaky ground — one dependent on cheap, and often unlawful, labor.
For years, Minneapolis embraced Sanctuary City policies that limited cooperation with federal immigration authorities. Restaurants, hotels, retail shops, and landlords benefited from a steady stream of low-cost workers and tenants. When enforcement increased under President Donald Trump, that labor pipeline dried up.
Reports indicate ICE arrested more than 4,000 illegal immigrants during recent operations. As a result, some businesses reduced hours, others scaled back services, and landlords reported missed rent payments. City officials estimate more than $200 million in “economic impact” in January alone, with small businesses claiming roughly $80 million in losses.
Mayor Frey cited “76,000 people in need of urgent relief” and warned of rising food insecurity and struggling schoolchildren — without distinguishing between American citizens, legal immigrants, and those in the country unlawfully.
Minnesota Governor Tim Walz has echoed the call for federal funds, arguing that Minneapolis is a major economic engine for the state and deserves compensation. Frey emphasized that the city sends more tax dollars to the state than it receives, suggesting Washington and St. Paul owe Minneapolis financial assistance.
But critics argue that what city leaders are really asking for is a subsidy to preserve a Sanctuary City economy — one propped up by underpaid labor and policies that discouraged lawful employment practices.
There’s another side to the story rarely mentioned at these press conferences: when illegal labor disappears, wages for American workers tend to rise. Businesses must compete for lawful employees. Overtime pay increases. Market forces begin correcting years of artificially suppressed wages.
That adjustment may be uncomfortable for companies accustomed to cut-rate labor, but it reflects a functioning free market — not a crisis requiring a $200 million federal check.
Despite this, the Minneapolis City Council has already approved $1 million to assist 250 families with rent and $500,000 for immigrant legal services. Another $5 million proposal aimed at helping struggling businesses is pending.
The broader question remains: Should taxpayers nationwide foot the bill for policies local leaders willingly adopted?
Immigration enforcement didn’t “slash” the city’s economy. It exposed its dependency. If Minneapolis wants long-term stability, critics say, it may need to build an economy rooted in lawful employment — not demand Americans pay to sustain a system that ignored federal law in the first place.
