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Minneapolis City Council members are weighing a contentious measure that could penalize businesses, specifically hotels, that cooperated with Immigration and Customs Enforcement (ICE) during the recent federal immigration enforcement operation known as “Operation Metro Surge.” The debate highlights the deep divisions within the city following months of increased ICE activity and subsequent protests.
A committee of the full Minneapolis City Council, composed of all 13 members, voted 11-2 on Tuesday, February 17, to direct staff to investigate the feasibility of denying or revoking the liquor licenses of establishments that provided accommodations to ICE agents. This move comes after a period of significant economic disruption and heightened tensions in the city, with some officials estimating a loss of at least $200 million in revenue due to the ongoing situation.
The catalyst for this action stems from the federal government’s “Operation Metro Surge,” which began in December 2025 and involved an increased presence of ICE and Customs and Border Protection (CBP) agents in the Minneapolis area. The operation has been widely criticized following the deaths of Renee Nicole Good and Alex Pretti, U.S. Citizens who were fatally shot by federal agents in January 2026, sparking widespread protests and calls for accountability. The Minneapolis Times described the events as a “catastrophic overreach” of federal authority.
The proposed action isn’t happening in a vacuum. The City Council is also responding to pressure from activist groups who are demanding congressional action regarding the conduct of federal immigration officers during Operation Metro Surge. A meeting was held on February 17th to encourage attendance and show support for a council resolution demanding such action, according to Bring Me The News.
Debate Over Economic Impact and City Authority
The debate centers on whether the city has the authority to punish businesses for accommodating ICE agents and whether such actions would further harm Minneapolis’s economy. Some council members argue that businesses have a moral obligation to not assist in what they view as unjust immigration enforcement practices. Others express concern that targeting businesses could lead to legal challenges and further economic fallout. The city previously saw Democrats sounding the alarm that anti-ICE protests had already cost the city $200 million in revenue.
The situation is further complicated by accusations that city officials may have inadvertently contributed to the economic downturn. Reports surfaced alleging that while the council considered measures to penalize businesses assisting ICE, other officials were simultaneously proposing forgivable loans to businesses affected by the surge, while simultaneously sending emails advising businesses to close their doors and workers to stay home. This apparent contradiction has fueled criticism from some residents, who argue that the city’s actions have exacerbated the economic impact of the operation.
Liquor Licenses as Leverage
The focus on liquor licenses stems from the city’s ability to regulate these permits and potentially use them as leverage to influence business behavior. Denying or revoking a liquor license can have a significant financial impact on a business, particularly in the hospitality industry. However, legal experts are divided on whether such a move would be legally defensible, given potential challenges based on due process and equal protection grounds.
The Minneapolis City Council is scheduled to vote on the $7 million relief fund for minor businesses impacted by the federal immigration operation on Thursday, February 19, 2026, according to MPR News. This fund is intended to provide financial assistance to businesses that have experienced losses due to the ongoing situation.
What’s Next for Minneapolis?
The City Council’s decision on whether to pursue liquor license penalties for hotels that housed ICE agents will likely set a precedent for how Minneapolis responds to future federal immigration enforcement operations. The outcome of the vote, and any subsequent legal challenges, could have significant implications for the relationship between the city and federal authorities, as well as for the business community. The council’s actions are being closely watched by other cities grappling with similar issues.
What are your thoughts on the Minneapolis City Council’s potential actions? Share your opinions in the comments below and aid us continue the conversation.