Minneapolis officials have revised the estimated cost of the city's immigration enforcement operation, Operation Metro Surge, to nearly $700 million, an increase from the previous estimate of $203 million made in February. The updated figure reflects data covering December 2025 through April 2026, while the initial report only included January data.
Mayor Jacob Frey, along with other city leaders, presented the new estimate, highlighting the significant economic impact on residents, businesses, and neighborhoods affected by the presence of Immigration and Customs Enforcement (ICE). Frey noted that the report outlines hardships such as lost income, food insecurity, and increased mental health needs, while also recognizing the community's resilience.
Operation Metro Surge concluded in mid-February following an announcement from White House border czar Tom Homan regarding the withdrawal of federal authorities from the Minneapolis-St. Paul area. The city has since been working to address the economic repercussions of the operation.
According to the report, workers and businesses incurred an estimated loss of $607 million, with the city providing various forms of assistance: approximately $63 million for rent, $9 million for food security, $7 million for mental health support, and $2 million for youth programs. Additionally, nearly $10 million was allocated for city operations.
Frey mentioned that the city's small-business resiliency fund has helped local restaurants and stores, and the city has begun issuing license fee refunds to around 1,200 businesses.
Emergency Management Director Rachel Sayre indicated that the updated $700 million figure might be an underestimate, suggesting total costs could approach $1 billion. A recent study from the University of San Diego reported that Minneapolis restaurants lost nearly $83 million in revenue, while retail stores and grocery stores lost over $63 million and $28 million, respectively.
An earlier report by North Star Policy Action indicated that Minnesota's leisure and hospitality sector lost approximately 4,600 jobs and $71 million in wages during the initial months of the year due to the operation. State Senator Bobby Joe Champion emphasized the need for economic relief for affected businesses, citing the North Star report and expressing disappointment over the failure to pass an economic recovery package in the legislature.