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LA County Report Finds $3.7 Million in Business Losses Tied to Immigration Enforcement
Small businesses across LA County reported major revenue declines and staffing shortages following federal immigration actions.
Published on Feb. 17, 2026
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A new report from the Los Angeles County Department of Economic Opportunity and the Los Angeles County Economic Development Corporation found that small businesses across LA County lost $3.7 million in revenue over a three-month period last summer due to the impacts of federal immigration enforcement actions. The report surveyed 311 businesses, with 82% reporting negative effects and 44% saying they lost more than half their revenue.
Why it matters
The report highlights the significant economic toll that aggressive federal immigration policies can have on local communities, especially small businesses that rely on immigrant workers and customers. It also underscores the ongoing tensions between local and federal authorities over immigration enforcement.
The details
The report found that 70% of surveyed businesses reported staffing shortages following enforcement actions, and 33% said workers were afraid to report to their jobs. County Supervisors Hilda L. Solis and Janice Hahn commissioned the study, which the Republican Party of Los Angeles County criticized as politically motivated.
- The report surveyed businesses between July and September 2025.
- The Los Angeles County Board of Supervisors approved the study in a motion on June 17, 2025.
The players
Los Angeles County Department of Economic Opportunity
The county agency that produced the report on the economic impacts of immigration enforcement.
Los Angeles County Economic Development Corporation
The organization that co-authored the report with the Department of Economic Opportunity.
Hilda L. Solis
The chair of the Los Angeles County Board of Supervisors who commissioned the study.
Janice Hahn
The Fourth District supervisor on the Los Angeles County Board of Supervisors who commissioned the study.
Republican Party of Los Angeles County
The local Republican party organization that criticized the report as politically motivated.
What’s next
The Los Angeles County Board of Supervisors has approved an additional $3.33 million to expand the LA Region Small Business Resiliency Fund, which is expected to distribute grants to more than 650 additional businesses in upcoming rounds.
The takeaway
This report underscores the significant economic toll that aggressive federal immigration enforcement can have on local communities, especially small businesses that rely on immigrant workers and customers. It highlights the ongoing tensions between local and federal authorities over immigration policy and the need for policies that support small businesses and workers in the face of these challenges.
