All NewsEducationTV
Equities & FundsCrypto & Digital AssetsAI & TechnologyBusiness & CorporateUS Politics & PolicyGeopolitics & Global RiskMacro, Rates & FXCommodities & EnergyEuropean Politics & MarketsAsia-PacificReal Estate & Property
Story archiveAll categories
← All Stories

Immigration Crackdowns Cost LA Businesses Millions

Created at 29 Jul · 1:21 AM1 source↑ Market-relevant
IN SHORT

New research indicates that immigration crackdowns in Los Angeles in mid-June 2025 resulted in over $3 million in lost revenue and 46,000 fewer customer visits. Businesses continue to struggle with the economic fallout, including deferred expansion plans and increased debt, as fear of enforcement persists.

✉Newsletter

PiQ Daily

Pick your topics. Get only what matters, on your cadence.

Key Numbers

$3Mlost revenue from immigration crackdowns
46,000fewer business visits due to crackdowns
70%increase in removal orders in LA County
9.9%below 2024 foot traffic totals in Fashion District
82%businesses negatively affected by raids
57%responding businesses were commercial space occupiers
148%increase in ICE arrests in LA area

Who's Involved

University of California, Los Angeles' Latino Politics and Policy Institute
conducted research on the economic impact of immigration crackdowns
Nicholas Vargas
coauthor of the UCLA report on immigration crackdown costs
Los Angeles Economic Development Corp.
provided data on removal orders and business impacts
Placer.ai
provided foot traffic data for the Fashion District
Fashion District Business Improvement District
provided foot traffic data from Placer.ai
Immigration and Customs Enforcement (ICE)
conducted immigration raids and arrests
Kristin Fukushima
executive director of the Little Tokyo Community Council
Deportation Data Project
processed ICE arrest data
Immigration Crackdowns Cost LA Businesses Millions

↳ Why This Matters

The immigration crackdowns have had a substantial negative economic impact on Los Angeles businesses, leading to millions in lost revenue and affecting business operations and expansion plans, highlighting the broader economic consequences of immigration enforcement policies.

Key facts

  • Immigration crackdowns in Los Angeles in mid-June 2025 led to significant financial losses for businesses.
  • Research estimates over $3 million in lost revenue and 46,000 fewer customer visits.
  • Removal orders in Los Angeles County saw a 70% increase in the first eight months of 2025.
  • Foot traffic in the Fashion District remains below pre-crackdown levels.
  • Fear of ongoing immigration enforcement continues to impact business operations and worker confidence.

Immigration crackdowns in Los Angeles in mid-June 2025 have inflicted significant and lasting financial damage on local businesses, with recovery efforts still underway a year later. Research from the University of California, Los Angeles' Latino Politics and Policy Institute estimates that these enforcement actions led to over $3 million in lost revenue and a decrease of 46,000 customer visits.

The impact extends beyond immediate sales figures, encompassing spoiled food, accumulated debt, lost wages for workers, and deferred business expansions, according to Nicholas Vargas, a coauthor of the report. The study highlights that the reported figures represent a floor, not a ceiling, for the economic costs.

Data from the Los Angeles Economic Development Corp. shows a 70% increase in removal orders in Los Angeles County during the first eight months of 2025 compared to the same period in 2024. While foot traffic in areas like the Fashion District has shown some recovery, it has not returned to pre-crackdown levels, with visits remaining 9.9% below 2024 totals.

Surveys indicate that approximately 82% of businesses participating in fall 2025 reported negative effects from the raids, with more than half experiencing reduced daily sales. Many businesses, particularly those occupying commercial spaces, are still grappling with the consequences, delaying expansion plans and consolidating locations to manage debt and shrunken savings.

Little Tokyo, though not directly targeted by large-scale raids, experienced disruptions due to its proximity to a federal detention center, including protests and a six-day nighttime curfew in June 2025. Kristin Fukushima, executive director of the Little Tokyo Community Council, noted that the area took months to rebound from this period. The ongoing presence and actions of immigration enforcement, including street arrests, continue to create an atmosphere of fear, impacting workers' willingness to come to work and affecting public spaces.

From January to March 10, 2026, ICE agents made 2,581 arrests in the greater Los Angeles area, a 148% increase from the same period the previous year, according to data analyzed by Bisnow. This sustained enforcement activity continues to have far-reaching effects on immigrant communities and their livelihoods.

Frequently asked questions

Research estimates that the mid-June 2025 immigration crackdowns resulted in over $3 million in lost revenue and 46,000 fewer customer visits to businesses in affected areas.

Foot traffic in the Fashion District has not fully recovered, with visits in early 2026 remaining 9.9% below 2024 totals, although they were 3% above 2025 figures.

ICE arrests in the Los Angeles area saw a 148% increase from January to March 10, 2026, compared to the same period in the previous year, indicating continued enforcement activity.

Beyond direct revenue loss, costs include spoiled food, increased debt, lost wages, missed supplier orders, and deferred business expansions, according to the UCLA report.

What Happens Next

01Businesses continue to focus on maintaining cash flow and recovering from lost revenue.
02Fear of ongoing immigration enforcement may continue to impact worker availability and business decisions.

Get the newsletter.

Pick the topics you actually care about. We'll email when there's news worth your time, on the cadence you choose. Cancel any time from your account.

Cadence

How It Developed

Immigration crackdowns occurred in Los Angeles in mid-June 2025.
Research from UCLA's Latino Politics and Policy Institute estimates over $3 million in lost revenue and 46,000 fewer visits to businesses.
Removal orders in Los Angeles County increased 70% in the first eight months of 2025 compared to the same period in 2024.
Foot traffic in the Fashion District has not fully recovered, remaining 9.9% below 2024 totals.
Approximately 82% of surveyed businesses reported negative impacts from the raids, with over half experiencing reduced sales.
Little Tokyo faced protests and a six-day curfew in June 2025, impacting its recovery.
Fear of immigration enforcement continues to affect workers and business operations.
ICE arrests in the Los Angeles area increased by 148% from January to March 10, 2026, compared to the previous year.

Sources

T1
Immigration Crackdowns Dealt LA Businesses A Multimillion‑Dollar BlowBisnow

Related Stories

ICE agents used racial slurs during Los Angeles crackdown, court files show
29 Jul · 12:37 AM
Haitian immigrants lose work authorization, creating uncertainty for workers and employers
28 Jul · 8:17 PM
Laredo's Economy at Risk From Trump's Shifting Trade Stance
28 Jul · 11:07 AM
Thousands arrested by ICE after tips from child migrant agency
28 Jul · 10:04 AM
US judge blocks Houston's minority contracting program
28 Jul · 9:23 PM