Bill would offer grants to small businesses impacted by ICE
The Small Business ICE Disruption Fund Act was introduced to the Senate last month.
“The Small Business ICE Disruption Fund Act offers targeted, responsible relief to help independent businesses survive unexpected shocks and remain anchors in their communities.”
Legislation has been introduced in Congress that would financially compensate small businesses impacted by more than a year of intensified national immigration crackdowns.
The Small Business ICE Disruption Fund Act, authored by Sen. Edward Markey (D-Mass.), would offer grants of up to $1 million — or $500,000 per physical business location — to small businesses that have been impacted by ongoing immigration enforcement campaigns, particularly in cities like Minneapolis, Chicago, and Los Angeles.
“My Small Business ICE Disruption Fund Act delivers real disaster relief for Main Street by providing grants for impacted small businesses,” Markey said in a statement introducing the bill.
If passed, qualifying small businesses could apply for grants if they are located in an area where a federal immigration raid has taken place over the past year, can demonstrate a net revenue loss of at least 25% resulting from ICE enforcement, and if the business has not already received a related grant. With the proposed $200 million in funding, at least 200-400 businesses nationwide could receive grants.
The legislation has received support from small business organizations, including the Independent Restaurant Coalition.
“When immigration enforcement actions suddenly reduce staff availability or drive customers away, there is often no financial cushion to absorb the loss,” Erika Polmar, executive director of the Independent Restaurant Coalition, said in a statement. “The Small Business ICE Disruption Fund Act offers targeted, responsible relief to help independent businesses survive unexpected shocks and remain anchors in their communities.”
The U.S. Center for Migration Studies estimates that approximately one million undocumented immigrants are working in the restaurant industry today.
Over the past year, there have been increased reports of restaurant operators reducing hours and closing indefinitely due to decreased traffic and challenges with maintaining staff.
A 2026 study from the Latino Economic Development Center in St. Paul showed that 44% of Latino businesses in the Twin Cities area closed temporarily, and more than 44% of Los Angeles businesses reported losses greater than half their annual revenue from ICE crackdowns.
The Small Business ICE Disruption Act faces significant challenges in gaining approval, as it would need bipartisan support from a Republican-controlled Congress to pass.
