Increased Immigration enforcement actions have deeply affected Latino communities, and a new report documents steep economic costs for Latino-owned small businesses in Los Angeles during the June 2025 Immigration and Customs Enforcement, or ICE, surge.
The July 2026 report, co-authored by UC Davis sociologist Ariana Valle, documents sales drops of 50% or more, closures or reduced hours and an estimated $3.16 million in losses for formal businesses. The report was produced by the UCLA Latino Policy & Politics Institute.
“The immigration enforcement surge caused immediate and lasting economic harm and, a year later, the crisis isn’t over,” said Valle, an assistant professor of sociology in the College of Letters and Science. “Many of these businesses are still struggling to stay open.”
The analysis produced five key findings:
- Enforcement produced an immediate economic shock, and Latino-owned small businesses closest to enforcement sites were hit hardest. Eight of the nine sites studied saw reduced foot traffic, with the steepest declines closest to each site.
- Within two weeks, formal businesses across the nine enforcement sites experienced 46,000 fewer visits and an estimated $3.16 million in accumulated losses. These estimates exclude informal businesses, such as street vendors and home-based businesses.
- The enforcement surge substantially disrupted business operations. Every business owner reported fewer customers and sales after the ICE raids, with 59% experiencing sales down by more than half, 68% temporarily closing or reducing business hours, and 51% with staff that missed work due to fear.
- Financial instability has persisted and deepened since June 2025. About 95% of Latino entrepreneurs reported ongoing financial stress nearly a year after the enforcement surge.
- Enforcement operations generated serious health and psychological consequences for 76% of business owners, including gastrointestinal disorders, insomnia, panic attacks and other stress-related illnesses.
The analysis examined how the June 2025 surge affected commercial activity and documented the experiences of 75 Latino business owners across or near nine enforcement sites across Los Angeles County. The researchers linked data collected on business foot traffic within a half mile of each site to the anecdotal experiences of business owners in focus groups and surveys.
Los Angeles County was a high-profile site of intensified immigration enforcement during the June 2025 surge when federal agents conducted large-scale operations across immigrant communities. During the surge, the federal government deployed 4,000 National Guard soldiers and 700 Marines to support enforcement operations that included roving patrols, street sweeps, raids and detentions.
Many of these operations resulted in serious injuries to both immigrants and U.S. citizens. They also prompted widespread protests and community mobilization. And the damage is lasting, said Valle.
“Fear, uncertainty and financial strain made it harder for these business owners to sustain their livelihoods even after the surge ended,” said Valle. “This is why the consequences of immigration enforcement extended far beyond the immediate disruption of the operations themselves.”
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