LA County Report Reveals Economic Toll of ICE Crackdown on Immigrant Communities

Neighborhoods with high immigrant populations and undocumented workers hit hardest, small businesses suffer losses

Feb. 9, 2026 at 8:15pm

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A new report from the Los Angeles County Department of Economic Opportunity and Los Angeles County Economic Development Corporation has found that federal immigration enforcement has had a significant economic impact on undocumented and immigrant communities in the region. The report identified the neighborhoods most targeted by ICE raids and found they were more economically vulnerable, with higher shares of foreign-born residents, renters, Spanish-speakers, and undocumented workers. Small businesses in these areas also reported losing customers and revenue due to a climate of fear.

Why it matters

The report highlights the ripple effects of aggressive immigration enforcement on local economies and communities in Los Angeles, where nearly 1 in 5 people is undocumented or lives with someone who is. It shows how crackdowns on undocumented immigrants, who make up a significant portion of the workforce in key industries, can hurt small businesses and economically precarious neighborhoods.

The details

Researchers determined that the most targeted ZIP code in the county is 91402, which spans Mission Hills, Panorama City and North Hills in the San Fernando Valley. The 10 most vulnerable ZIP codes were primarily in working class, immigrant neighborhoods including Bell, Pico Rivera and Southeast LA. These areas had higher shares of foreign-born, renter, Spanish-speaking, and non-citizen residents, as well as more businesses in industries like manufacturing and retail that employ undocumented workers. Over 80% of the 200+ small businesses surveyed reported being negatively affected by federal immigration enforcement, with half losing regular customers and a quarter temporarily closing due to community fears.

  • The Los Angeles County Department of Homeland Security has detained more than 10,000 people in the LA-area since June 2025.
  • The report was commissioned by the county Board of Supervisors and compiled in February 2026.

The players

Los Angeles County Department of Economic Opportunity

The county agency that co-authored the report on the economic impacts of immigration enforcement.

Los Angeles County Economic Development Corporation

The nonprofit research group that co-authored the report using census data and reports on ICE detentions.

Los Angeles County Board of Supervisors

The county governing body that commissioned the report on the economic consequences of heightened immigration enforcement.

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What’s next

The Los Angeles County Board of Supervisors is expected to review the report's findings and consider policy responses to mitigate the economic harm to immigrant communities and small businesses.

The takeaway

This report underscores the significant economic toll that aggressive immigration enforcement can have on local communities, particularly those with large undocumented populations that are vital to key industries. It highlights the need for policymakers to consider the broader societal and economic impacts of cracking down on undocumented immigrants.