Minnesota Gov. Tim Walz pitched spending $10 million on Minnesota businesses that were impacted by a federal immigration blitz after the federal government busted billions of fraud in the state.
After President Donald Trump withdrew troops from Minnesota, Walz now wants taxpayers to clean up the mess.
The proposal would give forgivable loans to businesses ranging between $2,500 and $25,00
Many businesses chose to shut down and protest U.S. Immigration and Customs Enforcement instead of running their businesses.
Walz is proposing that #mnleg approve $10 million in forgivable loans at zero interest to small businesses impacted by the ICE operation here.
— Caroline Cummings (@CaroRCummings) February 12, 2026
He claimed that the federal government damaged the state. But videos of the riots showed city residents vandalizing buildings, setting dumpsters on fire, and breaking into federal vehicles and stealing a weapon.
In some cases, businesses shut down to avoid violent riots reminiscent of the 2020 George Floyd riots that caused roughly $500M worth of damage.
The long road to recovery starts now.
— Governor Tim Walz (@GovTimWalz) February 12, 2026
The impact on our economy, our schools, and people’s lives won’t be reversed overnight. That work starts today.
I’ll have more at 9:45.
🚨 BREAKING: Tim Walz is proposing that the Minnesota Legislature pass $10 million in forgivable, zero-interest loans to small businesses impacted by his failure to cooperate with federal law enforcement.
— Dustin Grage (@GrageDustin) February 12, 2026
Yet another opportunity to defraud taxpayers.
Who are you going to blame all of your problems on now? https://t.co/pi1ZvA1DQZ
— Bill Glahn (@billglahn) February 12, 2026
The funding will be part of the Governor’s 2026 legislative session package and would be administered through the Minnesota Department of Employment and Economic Development.
“The campaign of retribution by the federal administration has been more than a short-term disruption; it has inflicted long-term damage on Minnesota communities, "Walz said. “Recovery will not happen overnight. Families, workers, and business owners are feeling the effects, and our responsibility is clear: we will help rebuild, stabilize these businesses, protect jobs, and ensure Minnesota’s economy can recover and thrive.”
Under the proposal, one-time funding would be distributed in forgivable loans ranging from $2,500 to $25,000. Eligible businesses must be able to demonstrate substantial revenue loss during specified dates tied to the surge.
House Majority Whip Tom Emmer, R-Minnesota, slammed the idea.
BREAKING: Tim Walz opens up a new avenue for fraud in Minnesota. https://t.co/Z9vKlMr7aG
— Tom Emmer (@GOPMajorityWhip) February 12, 2026
The immigration blitz started because Minnesota residents allegedly stole billions of dollars from 14 state social programs, including those meant to feed hungry kids, help autistic kids, and help people find housing.
Walz claims that the amount of fraud committed in the state since 2022 is about $217 million, but a federal prosecutor says the number is closer to $1 billion. Walz's proposal appears to face an uphill battle, according to early reactions from some lawmakers.
This is an immediate NO from me.
— Michael Holmstrom (@MichaelH_MN) February 12, 2026
MN taxpayers do not deserve to have more money stolen from them. https://t.co/2jyDS32zOJ