Local Businesses Struggle to Recover After Federal Crackdown in Minnesota

Immigrant-owned shops in Minneapolis face lingering economic damage despite drawdown of federal agents

Feb. 26, 2026 at 4:50am

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Nearly two weeks after the announced drawdown of federal immigration agents in Minnesota, local businesses are still feeling the impact, with some reporting sales drops of nearly 40%. Owners of immigrant-owned restaurants and shops in Minneapolis say the emotional toll of the crackdown is turning into an economic reality, and recovery could take over a year to repair the financial damage.

Why it matters

The prolonged presence of federal agents in Minnesota, despite the announced drawdown, has had a chilling effect on immigrant communities and their support of local businesses. This highlights the lasting economic consequences of aggressive immigration enforcement policies, even after the initial crackdown has ended.

The details

Court records show that around 400 federal agents are still operating in Minnesota, despite the Trump Administration's announcement of a drawdown. This is down from a peak of 4,000 agents in January. Businesses like Hufan Restaurant & Café and Pasteleria Gama have seen sales drop by nearly 40% as customers stayed away due to fear and uncertainty. Owners say the emotional toll is turning into an economic reality, and recovery could take up to a year.

  • The Trump Administration announced a drawdown of federal agents in Minnesota nearly two weeks ago.
  • In January, there were 4,000 federal agents operating in Minnesota.
  • As of Thursday, the St. Paul field office director said about 107 ICE agents will remain.
  • About 300 agents with Homeland Security Investigations will be in Minnesota by March.
  • All Customs and Border Protection agents were meant to leave two days ago.

The players

Abdiwahab Mohamed

The owner of Hufan Restaurant & Café, who says sales have dropped by nearly 40% due to the federal crackdown.

Candy Gama

The owner of Pasteleria Gama, who says February sales were the worst since the federal operation began and that recovery won't happen overnight.

Meredith Aby

An organizer who says the governor and others want to shift the conversation, but the impact is still felt in Minneapolis and Minnesota.

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What they’re saying

“It doesn't feel the same and I think it's going to take a while to go back to normal.”

— Candy Gama, Owner of Pasteleria Gama

“The governor and other people want to shift conversation and make it seem like we are moving on- fact of the matter is that is not what it feels like in Minneapolis or in Minnesota.”

— Meredith Aby, Organizer

What’s next

Organizers continue to bring people together to discuss ways to help immigrant communities and prevent them from retreating further, as the economic impact of the federal crackdown lingers.

The takeaway

This case highlights the lasting damage that aggressive immigration enforcement can have on local economies, even after the initial crackdown has ended. It underscores the need for policymakers to consider the broader community impacts of such actions and work to support affected businesses and residents during the recovery process.