A new study from the University of Illinois Chicago (UIC) shows the fear and isolation caused by a surge in Immigration and Customs Enforcement (ICE) arrests in the last twenty months took a significant economic toll on Chicago. Local businesses lost over $1.26 billion due to the surge, NPR reported. The economic fallout extended far beyond immigrant communities.

Details of Impact

The study found major changes in people’s behavior after January 20, 2025. From that time:

  • Visits to retailers fell 9%.
  • Restaurants lost 10% of their visitors.
  • These dips lasted for about a year, and the city has yet to recover.
  • Illinois lost an estimated $107 million in tax revenue.

An estimate from the Brookings found that aggregate consumer spending has fallen by about 1.7 percentage points in states with high levels of immigration enforcement.

From September through December of 2025, Operation Midway Blitz led to the most ICE arrests in Chicago. The American Immigration Council reported that 85% of those arrested and detained in the operation had no criminal convictions, according to the Illinois Accountability Commission. That’s consistent with the increase in arrests of people with no criminal history since January 2025. ICE’s own numbers show that about 70% of people in ICE detention today have no criminal convictions. The study shows how higher immigration enforcement clearly impacts local communities economically.

As always, ILBSG actively monitors ongoing U.S. immigration news. If you have questions about any U.S. immigration related issue, contact us. Working with an experienced attorney ensures you get the right advice based on the most recent laws. In an ever-evolving immigration policy landscape, it’s particularly critical you get the right advice.