Los Angeles area loses $1 billion due to immigrant attacks and protests

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Los Angeles area officials decried the raids as unnecessary and unwanted in a community that has long welcomed immigrants as an important part of its economy.

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California officials say last summer’s immigration raids and subsequent protests around Los Angeles, some of which turned violent, cost the state more than $1 billion in lost productivity, sales and wages.

A new report commissioned by the Los Angeles County Board of Supervisors also found that businesses disclosed nearly $200,000 in losses due to vandalism. In addition to extensively spray-painting graffiti, participants set several vehicles on fire, including at least one police SUV.

President Donald Trump’s aggressive immigration enforcement sparked protests in early June. These small protests around federal facilities prompted President Trump to deploy the National Guard and Marines, sparking even larger protests.

President Trump campaigned on the promise of carrying out the largest mass deportation in history, and last summer, immigration enforcement officers enforcing Trump’s orders were captured on video chasing suspected illegal immigrants through car washes and hardware store parking lots.

Los Angeles area officials decried the raids as unnecessary and unwanted in a community that has long welcomed immigrants as an important part of its economy.

Businesses closed, customers stayed at home and 17,000 people stopped using public transport, the report said. Officials say undocumented workers generate more than $250 billion in annual economic output, support more than 1 million jobs and contribute $80 billion in labor to the county’s economy.

“A climate of fear prevailed throughout the affected regions, fundamentally changing consumer behavior, with customers staying at home, avoiding certain areas, and reducing spending across immigrant communities,” the report concluded.

Los Angeles officials say ‘out of control’ ICE raids hurt economy

Mr. Trump and his allies argue that illegal immigrants harm American society by consuming housing, jobs and other resources that would otherwise go to citizens and legal residents, and that removing millions of immigrants will ultimately improve the country’s economy and improve public safety.

Immigration enforcement officials say they have expelled more than 657,000 illegal immigrants from the United States since January 2025 and voluntarily deported another 2.2 million. The Department of Homeland Security said those statistics include more than 40,000 potential national security risks, nearly 1,4000 “known or suspected terrorists,” and more than 7,000 gang members.

Los Angeles city officials said the immigration raids did not focus on criminals, but instead wiped out law-abiding people who have long called Los Angeles home.

As part of an aggressive crackdown, the White House has ended legal protections for tens of thousands of people living in the United States and begun detaining people who had previously been allowed to live and work in the country.

“Out-of-control ICE raids are causing senseless and devastating harm to our country, and we are seeing it here in Los Angeles County,” Los Angeles County District 4 Supervisor Janice Hahn said in a statement. “They are tearing families apart and treating our neighborhoods like war zones. And now we have hard data about the damage they are doing to our economy.”

According to the nonpartisan Immigration Policy Institute, nearly 14 million illegal immigrants were living in the United States in 2023. More than 4 million of them were married to U.S. citizens or lawful permanent residents without a clear path to legal status.

After an immigration officer in Minneapolis shot and killed two Americans last month, President Trump, who is closely monitoring public opinion polls, fired controversial Border Patrol Commander Greg Bovino and began softening his message. The deaths of Renee Good and Alex Preti sparked massive protests across the country.

“I’ve learned that maybe we could use a little bit more of a soft touch, but we still have to be tough,” Trump said in an interview with NBC Nightly News from the Oval Office on Feb. 4.

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