Federal immigration enforcement actions have caused millions of dollars in business losses, widespread staffing shortages and a sharp decline in consumer activity across Los Angeles County, according to a new report released by county economic agencies.
The report, produced by the Los Angeles County Department of Economic Opportunity and the Los Angeles County Economic Development Corporation, found that 82% of businesses surveyed reported negative impacts from immigration enforcement, with 44% losing more than half their revenue. Businesses reported $3.7 million in losses over just three months last summer, while a weeklong curfew in downtown Los Angeles resulted in an estimated $840 million in economic output losses.
The findings cap a series of six previous reports the agencies have produced since June 2025, tracking the toll of aggressive federal enforcement operations that swept through workplaces, neighborhoods and public spaces across the region beginning early last year. The actions arrested thousands of local residents with most having no criminal history.
The crackdown sparked widespread fear that kept families away from schools, businesses and public services, and triggered massive protests that led President Donald Trump to deploy National Guard troops and active-duty Marines to the city.
The report, commissioned by a motion introduced by Supervisors Hilda L. Solis and Janice Hahn, drew on economic and workforce data, immigration court records, transportation indicators and direct input from businesses and communities. The LAEDC conducted in-depth interviews with small business owners, held community forums and ran a countywide business impact survey from mid-September to mid-November 2025.
The data underscored the economic weight of the immigrant workforce in Los Angeles County. Undocumented workers contribute an estimated $253.9 billion in total economic output — equivalent to 17% of the county's gross domestic product — and support more than 1.06 million jobs generating $80.4 billion in labor income across construction, manufacturing, retail and services.
The enforcement actions cut deeply into that economic engine. More than half of businesses surveyed reported reduced daily sales and decreased customer traffic. Seventy percent experienced staffing shortages, and 33% of employers said workers were afraid to report to their jobs. Fifty-nine percent of employers expressed concern about maintaining their current workforce.
The disruptions extended beyond individual businesses. Bus ridership on high-vulnerability transit lines declined by approximately 17,000 monthly riders compared to baseline levels. Businesses in areas affected by curfews and protests reported more than $200,000 in property damage. Ninety percent of business owners interviewed perceived growing distrust across federal and local governments.
"Small businesses and workers across Los Angeles County have felt the real consequences of the Trump administration's cruel and inhumane federal immigration enforcement," said Solis, the county Board chair. "This report shows how these actions have affected livelihoods, disrupted the local economy, and challenged our communities."
Hahn called the raids "senseless and catastrophic."
"They are ripping apart families, treating our neighborhoods like warzones, and now we have hard data about the damage they are doing to our economy," Hahn said. "Our businesses recorded millions of dollars in losses in a matter of months. This is entirely the Administration's doing, and they can make this pain stop now."
LAEDC President and CEO Stephen Cheung said the findings illustrated how interconnected the county's economic health is with its immigrant workforce.
"Los Angeles County's economy depends on a stable workforce, thriving small businesses, and strong consumer activity," Cheung said. "This report shows how disruptions in any one of those areas can quickly translate into countywide economic losses."
In response, the county has launched several aid programs. The LA Region Small Business Resiliency Fund, established in September 2025, awarded more than $1.53 million in grants to 367 businesses in its first round after receiving more than 3,400 applications. The Board of Supervisors approved an additional $3.33 million to expand the program to more than 650 additional businesses.
The Department of Economic Opportunity also expanded its Youth@Work program, increasing paid work hours from 150 to 400 for young people who have become primary earners due to family separations caused by enforcement actions.
Local leaders have fought back on multiple fronts. Mayor Karen Bass issued an executive directive barring city cooperation with ICE and filed suit against the federal administration. The county Board of Supervisors declared a local emergency, funded immigrant legal aid and voted to ban ICE from county property.
The Santa Monica Police Department does not participate in civil immigration enforcement, conduct immigration sweeps, raids, or detentions based solely on a person’s immigration status. They do not independently enforce federal immigration laws but have said they do enforce all criminal laws without regard to immigration status.