How ICE raids changed a once bustling Chicago neighbourhood

February 1, 2026

Chicago's Little Village neighborhood, a vital Hispanic economic hub generating high tax revenues, has experienced a dramatic economic decline following Operation Midway Blitz, a federal immigration enforcement campaign launched in September. Business owners report sales drops of 30-60%, with the normally bustling 26th Street commercial corridor becoming nearly empty as fearful residents avoid public spaces. The operation, which the Department of Homeland Security says has arrested over 800 undocumented migrants including criminals, has disproportionately affected everyday workers and local commerce according to court records and community members.

Who is affected

Hispanic residents of Chicago's Little Village neighborhood
Small business owners along the 26th Street corridor, including Carlos Macias (grocery/restaurant owner), Christina Gonzalez (restaurant owner), Adolfo Peña (shoe shop owner)
Employees at local businesses who have had their hours cut
Street food vendors selling tamales, chicharrónes, and empanadas
Over 800 undocumented migrants arrested during Operation Midway Blitz
Customers and patrons of Little Village businesses
The broader Chicago economy through lost tax revenue
Katie Abraham (20-year-old US student killed, in whose honor the operation was named)
Children of potentially deported parents

What action is being taken

Federal immigration agents are conducting enforcement operations in Little Village
Business owners are cutting employee hours due to reduced sales
The city of Chicago has launched "Shopping in Solidarity," a program encouraging residents to shop locally and support affected businesses
Street vendors are coming out less frequently and for shorter periods
Some vendors have stopped selling food altogether
Community members are staying indoors and avoiding public spaces out of fear

Why it matters

The situation in Little Village demonstrates the far-reaching economic consequences of aggressive immigration enforcement beyond its stated security goals. The 26th Street corridor is one of Chicago's highest tax-revenue-generating areas outside downtown, making its economic decline significant for the entire city's fiscal health. The crisis illustrates how immigration policy can create ripple effects throughout communities, affecting not just undocumented immigrants but also legal residents, business owners, employees, and the broader economy. Economists warn that mass deportations could reduce GDP by 7% over three years and increase prices by up to 9.1% by 2028, suggesting national implications. The situation also reveals political tensions, including among Latino voters like Peña who supported Trump but now regret their vote due to the direct impact on their livelihoods.

What's next

ICE raids across the US could increase in the coming months
The Trump administration plans to hire thousands of additional agents
New detention centers will be opened
The administration will work with private companies to locate people without legal status
Congress has approved $170 billion in funding for ICE and Border Patrol through September 2029
President Trump has pledged to "de-escalate" the situation in Minneapolis
Tom Homan announced there will eventually be a "drawdown" in numbers in Minneapolis

Read full article from source: BBC