When immigration raids swept through Los Angeles County’s Latino commercial corridors in June 2025, storefronts emptied as customers and workers stayed home. A year later, many businesses have still not recovered, according to a new report by the UCLA Latino Policy and Politics Institute in partnership with the nonprofit Inclusive Action for the City.
Researchers estimated that businesses near nine enforcement sites lost more than $3 million in revenue in the two weeks following the raids last summer, with entrepreneurs also reporting persistent financial and mental health impacts.
“These businesses function as local economic engines. They employ neighbors, buy from local suppliers, and keep money circulating in their communities,” said Amada Armenta, co-author of the report, director of LPPI, and an associate professor of urban planning at UCLA Luskin. “When enforcement drives away their customers and workers, the harm extends to the health, well-being, and safety of entire communities.”
The report, which received coverage in the Washington Post, Los Angeles Times, and other media outlets, captured the experiences of 75 Latino entrepreneurs across the county, who described fewer customers, reduced operating hours, canceled orders, staffing disruptions, depleted savings, and accumulated debt. Nearly a year later, 95% continued to report financial stress, researchers found.
Fear, prolonged uncertainty, and financial pressure also took a toll on entrepreneurs’ health, with 76% of participants reporting a substantial emotional impact, including anxiety, sleep disruption, gastrointestinal disorders, and other stress-related illnesses.
“Immigration raids impose costs well beyond just individuals who were targeted,” said Nicholas Vargas, an associate professor at UC Berkeley and one of the study’s co-authors.
