The economic consequences of US immigration enforcement are emerging as a significant issue ahead of the November 3, 2026, midterm elections, with businesses reporting financial losses and Latino voters expressing growing dissatisfaction with President Donald Trump’s administration.
The elections will determine control of Congress, where Republicans currently hold power. Immigration policy and its effects on businesses and workers have become part of the political debate, particularly in states such as California, where millions of naturalised citizens are eligible to vote.
Los Angeles Businesses Report Heavy Losses After ICE Raids
A study by the University of California, Los Angeles (UCLA), examined the economic effects of immigration enforcement operations conducted in Los Angeles in June 2025.
A survey of 75 business owners found that 59% reported revenue declines of more than 50%. Another 51% said employees had been absent because of concerns about possible deportation, while 68% reported temporarily closing their businesses or reducing operating hours.
The study estimated that losses across nine locations exceeded $3 million over a two-week period.
The findings linked the disruption to concerns about immigration inspections, which affected staffing levels and customer activity at local businesses.
New Sisu Inc. Cuts Workforce and Production
The impact of immigration-related workforce disruption is also reflected in the experience of New Sisu Inc., owned by Ana Lopez.
The company reduced its workforce from 38 employees to 16 as workers emigrated or relocated.
Its production capacity subsequently declined, with the number of projects completed each month falling from 20 to 10, according to the report.
The case illustrates how workforce reductions can affect production levels in businesses that rely on skilled employees.
Trump’s Approval Rating Among Latino Voters Declines
The economic concerns come as support for Trump among Latino voters who backed him in the 2024 election has reportedly declined.
According to figures attributed to the Pew Research Center, his approval rating among those voters fell from 93% to 57%.
The Latino electorate has grown to an estimated 38.9 million voters, making the community an important constituency ahead of the midterm elections.
A separate poll conducted by Strength In Numbers and Verasight found that 62% of respondents were dissatisfied with the administration’s performance, while 34% expressed support.
The figures indicate dissatisfaction with the administration among a substantial proportion of respondents, although the surveys measure different groups and should not be treated as directly equivalent.
Immigration Policy Becomes an Economic and Political Issue
Business owners affected by enforcement operations have reported difficulties maintaining staffing levels and operating normally.
The reported losses have raised concerns about the effects of immigration policy on local businesses, particularly those that depend on workers who may fear deportation.
The economic consequences are also relevant to the political debate surrounding the midterm elections, as voters consider the administration’s immigration policies and their effects on employment and business activity.
Midterm Elections Could Change Control of Congress
The November 3 elections could result in Democrats gaining control of at least one chamber of Congress, according to the report’s forecasts.
A shift in congressional control could make it more difficult for the White House to pass legislation and advance its policy agenda.
It could also lead to greater congressional scrutiny of the executive branch and changes to legislative priorities, including immigration enforcement.
Any easing of immigration restrictions would depend on future policy decisions and the outcome of the political process.
California Voters Prepare to Weigh Federal Policies
California is among the states where the economic effects of federal immigration policies have attracted attention from businesses and voters.
Millions of naturalised citizens in the state are eligible to vote in the midterm elections, giving them an opportunity to influence the composition of Congress.
The election will take place amid reported business losses linked to immigration enforcement, workforce disruption and declining approval ratings among some Latino voters who supported Trump in 2024.
