Immigration Enforcement in LA County Causes $3.7 Million in Business Losses

LOS ANGELES, Calif. — A new county-commissioned report estimates that federal immigration enforcement activity in Los Angeles County between July and September 2025 resulted in approximately $3.7 million in reported business losses, underscoring the economic ripple effects of increased operations during that period.

The report, released this week by the Daily Breeze News, was commissioned by Los Angeles County Supervisors Hilda Solis and Janice Hahn and approved by the full Board of Supervisors in June 2025 following the start of increased immigration enforcement activity under the Trump administration. The County Department of Economic Opportunity partnered with the Los Angeles County Economic Development Corporation to analyze the impact of enforcement efforts on small businesses, workers and communities throughout the region.

According to the report, 311 individual respondents participated in a survey regarding the effects of federal immigration enforcement. Of those surveyed, 82% reported a negative impact on their businesses, with 44% stating they lost more than half of their revenue.

Additionally, 52% reported reduced daily sales, 51% experienced decreased customer traffic and 70% reported staffing shortages following enforcement actions. Business owners operating in areas affected by curfews and protests reported more than $200,000 in property damage.

The report also indicated that bus ridership on high-vulnerability transit lines declined by approximately 17,000 riders per month compared to baseline levels. A curfew implemented in downtown Los Angeles between June 10 and June 16 during anti-ICE protests resulted in an estimated $840 million in output losses, according to the analysis.

Kelly LoBianco, director of the Department of Economic Opportunity, stated, “This report confirms what so many small businesses, workers, and families have experienced firsthand.” She added that “immigration enforcement has caused widespread disruption.”

She stated the county is responding by “investing in sharing critical information and technical assistance to workers and employers, disbursing cash relief to small businesses, and offering paid work for youth and impacted families to help stabilize our communities and rebuild economic security.”

Trump administration officials cited what they described as lax border security policies under former President Joe Biden as a primary factor in their firm support of the increase in enforcement activity. Administration officials have also pointed to the arrest of immigrants without legal status and with prior criminal records as justification for expanded enforcement.

In response to the county report, the Republican Party of Los Angeles County issued a statement criticizing the Board of Supervisors. “L.A. County Board of Supervisors wants to justify further tax increases on the law-abiding citizens of Los Angeles,” the statement said. The party also questioned the economic impacts of other county policies, including COVID-era restrictions and housing regulations. It stated that local leaders were attempting to “blur the lines between legal and illegal immigrants.”

The report’s findings highlight an ongoing debate over the economic and social consequences of federal immigration enforcement. While county officials emphasized local impacts and relief efforts, federal and party representatives defended enforcement priorities, underscoring continued political and policy divisions surrounding immigration enforcement in the region and broader tensions around immigration policy.

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  • William Trevor

    William Trevor is a third-year Criminal Justice major at California State University, Sacramento. A strong advocate for equality within the criminal justice system, he plans to attend law school to further his commitment to advancing justice and systemic equity. Beyond his academic pursuits, William aspires to become an author and has written works of historical fiction examining large-scale systemic injustices. He is particularly interested in using narrative as a means of preserving history through the lived experiences of marginalized communities.

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