SF5034

Purpose

• Establish a one-time appropriation to study the statewide economic impact of increased immigration enforcement in Minnesota, including operations associated with Operation Metro Surge.

Main Provisions

• Appropriation: In fiscal year 2027, $250,000 from the general fund is allocated to the commissioner of Employment and Economic Development to conduct the analysis.
• Scope of analysis: Evaluate the statewide economic effects of increased immigration enforcement starting in 2025, including the Operation Metro Surge launched in December 2025.
• Economic factors examined:
  • Labor market: labor force participation, workforce availability, and workforce shortages across Minnesota’s economy.
  • Businesses: impacts on small and microbusinesses, including family-owned, immigrant-owned, and locally owned businesses; consider hiring challenges, operating costs, business continuity, and long-term sustainability.
  • Sectors: sector-specific impacts on agriculture, food processing, construction, health care, hospitality, manufacturing, transportation, and retail.
  • Operations and supply chains: effects on business operations, supply chains, productivity, and potential closures or relocations.
  • Regional effects: statewide impacts with comparisons across counties and differences among rural, suburban, and urban areas; focus on regional labor markets where practicable.
  • Economic outcomes: effects on consumer spending, state and local tax revenue, and overall economic output.
• Data sources: May incorporate information from academic institutions, Minnesota businesses, state agencies, and other available economic data sources.
• Third-party contract: The commissioner may solicit proposals and contract with a nonpartisan third party to prepare the report.

Implementation and Timeline

• Beginning of analysis: The study is intended to assess impacts beginning in 2025, with the analysis completed as part of a report.
• Reporting deadline: The commissioner must submit the analysis by February 1, 2027 to the chairs and ranking minority members of the legislative committees with jurisdiction over workforce and economic development.

Relationship to Existing Law and Other Provisions

• This measure creates a new, one-time appropriation and reporting requirement related to the economic impact of immigration enforcement.
• It references Operation Metro Surge as part of the enforcement activities whose economic effects will be analyzed.

Significance

• The bill aims to quantify how increased immigration enforcement and related operations affect Minnesota’s labor supply, business health, and regional economies, with a focus on real-world effects on small and immigrant-owned businesses and across multiple sectors.

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Relevant Terms immigration enforcement, Operation Metro Surge, statewide economic impact, labor force participation, workforce availability, workforce shortages, small businesses, microbusinesses, family-owned businesses, immigrant-owned businesses, locally owned businesses, sector-specific impacts, agriculture, food processing, construction, health care, hospitality, manufacturing, transportation, retail, business continuity, operational costs, productivity, business closures, relocations, regional economic impacts, rural, suburban, urban, consumer spending, tax revenue, economic output, nonpartisan third party, report, February 1, 2027, Minnesota.