Walz $10M forgivable-loan plan, suburban mayors seek broader state bailout for ICE surge damage
Gov. Tim Walz has included a $10 million emergency relief package in his 2026 legislative proposal to provide one-time forgivable loans of $2,500–$25,000, administered by DEED, to small businesses that can show substantial revenue loss during specified Operation Metro Surge dates — a response he called to a “campaign of retribution” that caused “long-term damage,” with owners like Henry Garcia saying aid could keep doors open. Meanwhile a coalition of roughly 20 largely suburban mayors is pushing for a broader state bailout, arguing the $10 million business fund is insufficient as cities face lost construction jobs, mounting police overtime, overwhelmed nonprofits and unaffordable local costs that suburbs cannot absorb alone.
📌 Key Facts
- Gov. Tim Walz included a $10 million relief package in his 2026 legislative proposal to help small businesses impacted by Operation Metro Surge; the program would be administered by the Minnesota Department of Employment and Economic Development (DEED), not a one-off executive action.
- The proposal would provide one-time forgivable loans (not merely zero-interest loans) ranging from $2,500 to $25,000 for qualifying small businesses that demonstrate 'substantial revenue loss' during specified Operation Metro Surge dates.
- Walz described the surge as a 'campaign of retribution' that caused 'long-term damage,' and DEED Commissioner Matt Varilek commented on the economic impacts of the operation.
- Henry Garcia, owner of CentroMex in East St. Paul, said sales are down and hours reduced, and that a forgivable loan could keep his business open.
- Local mutual-aid and philanthropic organizations are already supporting residents and businesses affected by the ICE surge.
- Roughly 20 mostly suburban mayors, organized as the Cities for Safe and Stable Communities Coalition, unveiled a coordinated recovery plan and 2026 legislative agenda seeking broader state funding to undo Operation Metro Surge damage.
- Mayors detailed concrete local strains and argued the $10M business fund is insufficient: Hopkins Mayor Patrick Hanlon said construction workers are leaving, projects sit idle and nonprofits are over capacity as rents and mortgages go unpaid; Brooklyn Park Mayor Hollis Winston said his city logged nearly 250 hours of police overtime in 2025 tied to the surge; Eden Prairie Mayor Ron Case said suburbs 'don’t have the resources to go it alone' and will need direct state aid beyond the governor’s proposal.
📊 Relevant Data
During Operation Metro Surge, ICE reported arresting over 3,000 individuals, with a list highlighting 13 arrests involving Somali, Latino, and Southeast Asian nationals, many of whom were described as having criminal convictions.
2025–26 Minnesota ICE Deployment | Operation Metro Surge — Britannica
Seventy percent of those arrested by ICE nationwide are criminal illegal aliens who have been charged or convicted of a crime in the U.S., with Operation Metro Surge focusing on individuals with extensive rap sheets including kidnapping, robbery, and other violent offenses.
DHS Sets the Stage for Another Historic, Record-Breaking Year Under President Trump — Department of Homeland Security
Illegal immigrants in the U.S. have an incarceration rate of 613 per 100,000, which is higher than legal immigrants but lower than native-born Americans, based on data from 2010–2023.
Illegal Immigrant Incarceration Rates, 2010–2023 — Cato Institute
In Brooklyn Center, Minnesota, the population is 31,755 as of 2024, with racial composition including approximately 37% White, 29% Black, 18% Asian, and 12% Hispanic, reflecting significant demographic diversity.
Brooklyn Center, MN - Profile data — Census Reporter
Eden Prairie, Minnesota, has a population of 64,198, with 69.5% White, 7.1% Black, and 31% BIPOC residents as of recent data, showing a growing diverse population.
Eden Prairie, MN Demographics: Population, Income, and More — Point2 Homes
Hopkins, Minnesota, has a racial composition of 64.7% White and 19.7% Black, with a total population around 18,700, indicating notable demographic shifts in recent years.
Hopkins, MN Demographics: Population, Income, and More — Point2 Homes
Operation Metro Surge has resulted in at least $203.1 million in economic impact on Minneapolis, including $47 million in lost wages and $81 million in small business losses within one month.
Operation Metro Surge cost Minneapolis at least $203 million, city officials say — FOX 9
Venezuelan immigrants in the United States have grown by 318% between 2010 and 2023, driven by economic and political instability in Venezuela.
Venezuelan Immigrants in the United States — Migration Policy Institute
📰 Source Timeline (4)
Follow how coverage of this story developed over time
- Roughly 20 mostly suburban mayors, organized as the Cities for Safe and Stable Communities Coalition, have rolled out a coordinated 'recovery plan' and 2026 legislative agenda responding to Operation Metro Surge.
- Hopkins Mayor Patrick Hanlon says construction workers are leaving Minnesota, projects are sitting idle, and nonprofits in his city are over capacity as rents and mortgages go unpaid.
- Brooklyn Park Mayor Hollis Winston says his city has already accrued close to 250 hours of police overtime in 2025 tied to the surge and calls that level of public‑safety spending unsustainable.
- Eden Prairie Mayor Ron Case publicly states that suburbs 'don’t have the resources to go it alone' and will need direct state aid beyond the governor’s proposed $10M business fund.
- Confirms program structure as one-time forgivable loans, not just zero-interest loans, ranging from $2,500 to $25,000 for qualifying small businesses.
- Specifies that businesses must demonstrate 'substantial revenue loss' during specified Operation Metro Surge dates to qualify.
- Places the $10M package explicitly inside the governor’s 2026 legislative proposal, to be administered by DEED rather than a one-off executive action.
- Includes new quotes from Gov. Walz calling the surge a 'campaign of retribution' that caused 'long-term damage,' and from DEED Commissioner Matt Varilek on economic impacts.
- Adds a concrete example from Henry Garcia, owner of CentroMex in East St. Paul, describing sales down, reduced hours, and how a forgivable loan could keep his doors open.
- Links readers to specific local mutual-aid and philanthropy organizations already supporting ICE-impacted residents and businesses.