[ST. PAUL, MN] – Following Border Czar Tom Homan’s announcement that the federal surge in Minnesota is coming to an end, Governor Tim Walz today announced a proposal for $10 million one-time emergency relief aimed at Minnesota businesses that have been impacted by the operation. 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 (DEED). The Governor was joined by DEED Commissioner Matt Varilek, CentroMex Supermarket owner Henry Garnica, and small business owners.

“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,” said Governor Walz. “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.

“While the human toll of this action may be apparent through local and national press coverage, the negative impact on Minnesota’s economy is a critical but less visible part of the story,” said DEED Commissioner Matt Varilek . “Many Minnesota businesses — especially small businesses — are facing economic hardships that may prove insurmountable for some. While we know economic repercussions for small businesses will be ongoing, this package could provide some fast relief to businesses that are just barely keeping their doors open.”

Commissioner Varilek is also working with the private sector to urge a temporary waiver or reduction of fees for services provided to Minnesota businesses impacted by the surge. He has asked private sector partners to consider measures that could help businesses stay open and recover more quickly, emphasizing that fast relief from these fees could be a lifeline for struggling businesses.

“The past few months have been some of the hardest I’ve experienced as a business owner,” said Henry Garnica, owner of CentroMex in East St. Paul. “Sales are down, we have limited hours, and we have had to change how we operate. That’s not who we are as a neighborhood store. This proposed forgivable loan package would give businesses like mine breathing room — to keep employees on payroll and keep our doors open. For some of us, it could mean the difference between surviving and closing for good.”

This announcement builds on efforts to highlight the economic impact of the surge on Minnesota businesses. Earlier this week, Governor Walz visited Malcolm Yards and was joined by local business owners to hear firsthand accounts of challenges in the hospitality and retail sectors.

Governor Walz also continues to encourage Minnesotans to support neighborhood businesses through February’s Shop Local Month and the “Shop Local, Stand Together” initiative, reinforcing community support, alongside state-backed relief, will be essential to a strong and sustained recovery.