LOS ANGELES — Intensive immigration enforcement operations conducted in Los Angeles County in June 2025 caused millions of dollars in losses for Latino-owned businesses while leaving many entrepreneurs facing continuing financial instability and lasting psychological harm, according to a report released by the UCLA Latino Policy and Politics Institute.
The report states that 4.76 million Latinos reside in Los Angeles County, comprising about half of the county’s population. The Latino population plays an important role in the county’s economy, owning “374,000 businesses [and] more than a quarter of all firms.”
In June 2025, Los Angeles County, particularly its Latino population, faced significant challenges because of intensive immigration enforcement operations conducted by both Immigration and Customs Enforcement and U.S. Customs and Border Protection agents.
According to the report, the enforcement operations used “roving patrols, street sweeps, raids [and] detentions.” The operation also relied on a heavy military presence in the region, as “4,000 National Guard soldiers and 700 Marines” were deployed to assist the effort.
Researchers found that the combination of the intensive enforcement operations and the military presence disrupted the daily lives of Los Angeles County residents.
To emphasize the broader consequences of the enforcement activities and the fear they instilled, the report describes the emergence of a “chilling effect,” which resulted in reduced participation in “healthcare, education, civic life and other routines.”
In the aftermath of the June enforcement activity, “foot traffic dropped by 1.91% within 0.25 miles and 0.93% between 0.26 and 0.50 miles.” Those declines increased to “3.23% and 1.63% respectively” by the end of the second week.
The decline in foot traffic was not the only consequence, as businesses also experienced substantial revenue losses. The report states that businesses within 0.25 miles of enforcement sites “had lost an estimated $2.11 million.” Businesses located between 0.26 miles and 0.5 miles away lost “$1.05 million.”
Fear generated by the enforcement activities also changed consumer behavior, as Latino residents became more cautious about leaving their homes. As a result, Latino consumers reduced purchases of nonessential goods.
The report notes that “discretionary spending categories including retail and services experienced the largest declines in foot traffic.” By contrast, the essential goods sector did not experience a decline in revenue. For example, grocery stores “showed slight increases in foot traffic (0.65%).”
Some business owners also made the difficult decision not to work because of fears surrounding the enforcement operations, further contributing to their economic losses. The report cites one street vendor who “stopped vending for six weeks, forfeiting an estimated $5,000 in income.”
These challenging and uncertain conditions forced business owners to alter their operations. According to the report, “in response to safety concerns and staffing shortages, businesses operated behind locked storefronts, reduced operating hours, shifted to appointment-only or referral-based service, and suspended social media advertising.”
The report concludes that Latino business owners continue to experience the effects of the immigration enforcement activities a year later, with “respondents described financial instability as an ongoing condition rather than temporary disruption.”
Researchers also describe the measures Latino business owners took to keep their businesses operating during the crisis. These included taking on debt, “taking outside employment, modifying service models, and diversifying products and services.” The report adds that some business owners assumed every responsibility themselves and worked longer hours to keep their businesses afloat.
The report concludes that the consequences extended well beyond lost revenue, describing a deterioration in the psychological and physical health of Latino entrepreneurs. According to the report, “survey data and focus group accounts told the same story: sustained fear, anxiety, depression, sleep disruption, hypervigilance, and stress that persisted long after the initial enforcement surge.”
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