Senate committee backs statewide study of Operation Metro Surge's economic impact, refers SF 3695 to finance

On March 5, 2026, the Minnesota Senate State and Local Government Committee voted 6–5 to recommend Senate File 36 95 as amended and refer it to the Senate Finance Committee. The bill would fund a nonpartisan, statewide economic-impact study of Operation Metro Surge, the federal immigration-enforcement operation that witnesses said harmed businesses, schools and service providers.

Senator Porte, the bill author, told the committee accurate data are needed to support local governments and industries affected by federal enforcement activity and to prepare for ongoing enforcement. "We cannot make effective policies without information to guide us," the author said, asking members to approve a statewide approach rather than leaving only better-resourced municipalities to study impacts.

Business owners and community organizations described steep local losses. Abdul Youssef, a grocery owner from Wilmer, said his store’s sales fell about 70% following enforcement activity and that customers were too frightened to shop. "My business is not the only one that has suffered," he testified.

Dr. Nicole Smarillo, director of data, research and policy at Think Small, presented limited-survey findings from December 2025 to February 2026 showing 27% of metro child-care programs reported decreased enrollments, 35% reported increased absences, and 27% experienced unexpected closure days. She urged a comprehensive, nonpartisan study to quantify costs to providers, families and the broader economy.

Alex West Steinman, co-founder and CEO of The Coven, said two coworking locations lost roughly 33% of revenue in January, forcing layoffs and reducing member bookings after nearby enforcement incidents. Mike Heng, chair of the Minnesota Hmong Chamber of Commerce, said Hmong and other immigrant-owned businesses have seen cancellations and closures and called for data-driven recovery efforts. Taomei Chong of the Coalition of Asian American Leaders said enforcement produced racial profiling and transfers of detainees outside Minnesota, deepening community trauma and economic harm.

Committee debate included two amendments from Senator Drazkowski that sought to expand the study to measure costs tied to people without legal status or to economic disruption from protests; both roll-call amendments failed by 6–5 margins. The author and supporters said a narrowly tailored, nonpartisan study would better identify where state assistance is needed. Senator Porte said the committee would await a fiscal note from Minnesota Management and Budget; the House had included $500,000 in its proposal.

The committee recorded a final roll call recommending SF 3695 as amended and referring it to the Finance Committee for fiscal review and further consideration.

Next steps: SF 3695 goes to the Senate Finance Committee, where staff will produce a fiscal note and members will consider funding and scope before any final passage vote.