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Minnesota Democratic Gov. Tim Walz was slammed online by Republicans after proposing a $10 million emergency relief package for small businesses across the state impacted by the Trump administration’s immigration crackdown.
Walz unveiled the proposal Thursday after Border Czar Tom Homan announced that Operation Metro Surge in Minnesota would be ending. The proposal calls for forgivable loans ranging from $2,500 to $25,000 to be distributed to eligible businesses that are able to demonstrate “substantial revenue loss” during “specified dates” tied to the operation.
“The campaign of retribution by the federal administration has been more than a short-term disruption; it has inflicted long-term damage on Minnesota communities,” Walz said in a statement. “Recovery will not happen overnight. Families, workers, and business owners are feeling the effects, and our responsibility is clear: we will help rebuild, stabilize these businesses, protect jobs, and ensure Minnesota’s economy can recover and thrive.”
Republicans quickly criticized the proposal as Minnesota continues to face extensive fraud allegations.
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President Donald Trump previously claimed that fraud in Minnesota exceeded $19 billion.
Dozens of people have been prosecuted in Minnesota in recent years for alleged large-scale welfare fraud schemes involving food assistance and autism services. Federal prosecutors have alleged the schemes stole hundreds of millions of dollars from taxpayer-funded programs, with separate investigations also examining alleged fraud in the state’s daycare system.
House Majority Whip Tom Emmer, R-Minn. reacted to the governor’s proposal on X, saying, “BREAKING: Tim Walz opens up a new avenue for fraud in Minnesota.”
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Minnesota Republican state Sen. Michael Holmstrom said on X that the proposal would be an “immediate NO from me,” adding that Minnesota taxpayers “do not deserve to have more money stolen from them.”
Others referenced fraud related to Minnesota’s daycare system, including Rep. Eli Crane, R-Ariz., who responded to the proposal on X, “Does that include learing centers?”
His post referenced a typo that read “Quality Learing Center,” which was eventually corrected. The Quality Learning Center was infamously featured in a video by YouTuber Nick Shirley, who visited multiple daycare centers across Minnesota that allegedly received public funds but were not providing any services.
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The governor’s office included a statement from Henry Garnica, the owner of CentroMex in East St. Paul, who said the past few months during the immigration operation have been “some of the hardest I’ve experienced as a business owner.”
“Sales are down, we have limited hours, and we have had to change how we operate,” he stated. That’s not who we are as a neighborhood store. This proposed forgivable loan package would give businesses like mine breathing room — to keep employees on payroll and keep our doors open. For some of us, it could mean the difference between surviving and closing for good.”
On Thursday, Walz demanded that the federal government “pay for what they broke” after the Trump administration said it would draw down its presence in the Twin Cities.
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Walz said during a news conference that federal law enforcement’s presence in the state was leaving “deep damage” and “generational trauma.”
Fox News Digital’s Michael Dorgan contributed to this report.
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